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The portions of Part II of this Statement of Additional","page_number":9,"box":{"x":70,"y":339,"width":832,"height":12}},{"id":"d9245bf6-09c9-4542-ac4a-37c34b94aa62","block_type":"box","text":"Information that do not relate to the Fund do not form a part of the Fund’s Statement of Additional","page_number":9,"box":{"x":70,"y":354,"width":748,"height":12}},{"id":"e2a40a0a-86a2-4e8a-8bcb-a0eb02596612","block_type":"box","text":"Information, have not been incorporated by reference into the Fund’s Prospectuses and should not be relied","page_number":9,"box":{"x":70,"y":369,"width":821,"height":12}},{"id":"8744fc3b-c97d-4375-aaa3-72a119166b0c","block_type":"box","text":"upon by investors in the Fund. The audited financial statements of the Fund are incorporated into this","page_number":9,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"3872d6c7-a8b2-4355-9bda-9d5b0e76aeab","block_type":"box","text":"Statement of Additional Information by reference to the Fund’s Annual Financial Statements and Additional","page_number":9,"box":{"x":69,"y":400,"width":820,"height":12}},{"id":"333ae6bf-8ddb-4573-ad91-d3b60581b238","block_type":"box","text":"Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR (the “2026 Annual","page_number":9,"box":{"x":70,"y":415,"width":818,"height":12}},{"id":"ddbc2029-d5a5-495a-b664-937540ebe697","block_type":"box","text":"Financial Statements”). You may request a copy of the 2026 Annual Financial Statements at no charge by","page_number":9,"box":{"x":70,"y":430,"width":803,"height":12}},{"id":"a5e41790-e9bc-4227-af3b-6434dea04891","block_type":"box","text":"calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":9,"box":{"x":69,"y":445,"width":693,"height":12}},{"id":"abfa0311-4b41-4786-a73d-d26727a3974c","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act” or the","page_number":9,"box":{"x":103,"y":468,"width":786,"height":12}},{"id":"ac63f2c9-90dd-4907-818f-c2f4d65cbe7a","block_type":"box","text":"“1940 Act”), or other applicable law, will include any rules promulgated thereunder and any guidance,","page_number":9,"box":{"x":69,"y":483,"width":772,"height":12}},{"id":"1d55cb3d-8b07-494e-9ad8-45f66af6c414","block_type":"box","text":"interpretations or modifications by the Commission, Commission staff or other authority with appropriate","page_number":9,"box":{"x":70,"y":498,"width":804,"height":12}},{"id":"42c90895-0bae-4711-aca6-7a5b76d80db3","block_type":"box","text":"jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the","page_number":9,"box":{"x":67,"y":513,"width":819,"height":12}},{"id":"c283869b-97d0-404d-a529-6c92f337dae6","block_type":"box","text":"Commission, Commission staff or other authority.","page_number":9,"box":{"x":70,"y":528,"width":378,"height":12}},{"id":"1acb01c5-0e32-4775-8221-70aeb558aeb9","block_type":"box","text":"Class","page_number":9,"box":{"x":69,"y":557,"width":31,"height":7}},{"id":"1f58c96e-8221-4e8b-a529-d2bccbd8024b","block_type":"box","text":"Ticker Symbol","page_number":9,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"6395c3e3-e2cc-4911-a992-5bbb1cf0b938","block_type":"box","text":"Investor A Shares","page_number":9,"box":{"x":70,"y":575,"width":124,"height":8}},{"id":"4989db5e-8755-4074-a828-ca76cbe1f86c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MEMTX","page_number":9,"box":{"x":199,"y":575,"width":696,"height":8}},{"id":"4afa6595-a482-4f33-9c82-c06a21c795b7","block_type":"box","text":"Investor C Shares.","page_number":9,"box":{"x":70,"y":590,"width":131,"height":9}},{"id":"f76893e7-7e0f-4c8a-bbf3-2ce81b68bd2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MFMTX","page_number":9,"box":{"x":208,"y":590,"width":686,"height":8}},{"id":"2931470a-ec85-4e3f-8bed-4ae6f7c49a68","block_type":"box","text":"Institutional Shares","page_number":9,"box":{"x":70,"y":605,"width":137,"height":9}},{"id":"e171b85f-fc58-40e4-bc23-62c684d035ab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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MKMTX","page_number":9,"box":{"x":183,"y":635,"width":712,"height":9}},{"id":"9066647e-c3d5-4ef0-be7e-3b75b9d3e492","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":9,"box":{"x":260,"y":690,"width":460,"height":19}},{"id":"92d2cdfc-1074-409d-a33d-a9d8c45f0b14","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":9,"box":{"x":222,"y":712,"width":536,"height":18}},{"id":"2f67c664-6bf2-431b-ad79-1f40bc450a09","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":9,"box":{"x":199,"y":772,"width":579,"height":11}},{"id":"a0a31941-31a4-4ecb-9f2e-d33e668ee843","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":9,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fcde296-c560-42d9-9f7c-fbc00984dc84","block_type":"box","text":"TABLE OF CONTENTS","page_number":10,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"d8fb49bf-141e-4cce-9054-c9ee805ec551","block_type":"box","text":"Page","page_number":10,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"6a39a26c-2cdd-4d23-9223-87bbede4e061","block_type":"box","text":"PART I","page_number":10,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"fa00147d-dc61-42ed-93ac-83b195e0a851","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":10,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"42323213-e241-4d8c-8238-fa13469d0cc2","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":10,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"9a317034-2f73-40f4-9cef-03818aa5ff89","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7","page_number":10,"box":{"x":70,"y":141,"width":838,"height":9}},{"id":"86a6a464-f859-4021-bc84-06b9416564fa","block_type":"box","text":"Management, Advisory and Other Service Arrangements. . . . . . . . .","page_number":10,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"c28476e3-1bca-4fd1-85a8-2aa133d015f8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":10,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"7e7487bb-d33b-4185-a369-309fd29f62ce","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":10,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"1e771a90-9c18-4b6e-bfad-5c9b16460d53","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-23","page_number":10,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"fd51a573-c13b-4550-bf7d-9b0c9d7e1e0a","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"ea3179ac-9b33-4591-b3fe-8c51391759f7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":10,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"93088a2a-5916-44c9-8f55-47704d08353f","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":10,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"7b25d440-c8cd-43f6-882b-60f733bada33","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":10,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"05fd8dbe-e9bd-4e3f-a975-5dbcd4a0a6ab","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"7091edee-405d-4aad-94e3-a4fe7bd82cf9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":10,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"0e59d0b7-8aa3-47db-8893-a16c53cd1fe2","block_type":"box","text":"Financial Statements","page_number":10,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"37cd6cef-43dc-451a-8df4-46f351e0a2ca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":10,"box":{"x":227,"y":239,"width":681,"height":9}},{"id":"07b4f58e-6d73-4921-b744-3e97779c1465","block_type":"box","text":"PART II","page_number":10,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"ae61376c-ae4b-4325-8978-47c2140be43d","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":10,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"25614db7-036b-4e1e-9d09-c0c2d3c966e0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":10,"box":{"x":407,"y":287,"width":502,"height":9}},{"id":"72a34f9d-5b3c-4100-b92f-e85a5fc267dc","block_type":"box","text":"Management and Other Service Arrangements . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":70,"y":304,"width":461,"height":11}},{"id":"60d27390-c548-4fc5-b0ea-d544a9a6daf6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-82","page_number":10,"box":{"x":537,"y":304,"width":372,"height":9}},{"id":"fdad5308-0e16-4550-b61a-1d91abfdbf32","block_type":"box","text":"Selective Disclosure of Portfolio Holdings. . . . . . . . . . . . . . . . . . .","page_number":10,"box":{"x":69,"y":320,"width":446,"height":11}},{"id":"5ca58397-509e-42a5-88a0-578e61a504a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-84","page_number":10,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"207f6baf-7408-4a6f-875e-9a0cbaa3028c","block_type":"box","text":"Purchase of Shares","page_number":10,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"b106df2d-cc2a-4359-a6d3-201e28c490c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":10,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"d8debd10-1247-4b9d-bf0d-74fb56d23975","block_type":"box","text":"Redemption of Shares . .","page_number":10,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"593cf7f9-4f05-400b-ad13-c9362112b7fe","block_type":"box","text":"........................................................................... 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A-1","page_number":10,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"52ec95e3-3094-4744-a3ed-69013da9ad60","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":10,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"980478f1-15fb-4fdd-b774-8504909a43c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":10,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"a9ca5645-a99c-4feb-a2de-7db08aa93891","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":10,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d63e860-e84e-4c50-9883-c95b104549ad","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK STRATEGIC MUNICIPAL OPPORTUNITIES FUND","page_number":11,"box":{"x":157,"y":45,"width":665,"height":9}},{"id":"b0ccc7fc-7dc3-486d-8021-0cd99edb01e0","block_type":"box","text":"OF BLACKROCK MUNICIPAL SERIES TRUST","page_number":11,"box":{"x":330,"y":60,"width":318,"height":9}},{"id":"0c08eaa0-b32f-453f-9bdc-639bb1bf96f9","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about BlackRock Strategic","page_number":11,"box":{"x":102,"y":82,"width":753,"height":12}},{"id":"2ed11de0-47fb-4f23-b7ee-8fab9c4aba9f","block_type":"box","text":"Municipal Opportunities Fund (the “Fund”), a series of BlackRock Municipal Series Trust (the “Trust”). It includes","page_number":11,"box":{"x":70,"y":98,"width":803,"height":11}},{"id":"2f8fd711-96c9-4235-a7a5-662e7c19a2fb","block_type":"box","text":"information about the Trust’s Board of Trustees (the “Board” or the “Board of Trustees”), the management services","page_number":11,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"b7e5743a-4175-4341-af4c-14708d4ef727","block_type":"box","text":"provided to and the management fees paid by the Fund and information about other fees applicable to and services","page_number":11,"box":{"x":70,"y":128,"width":825,"height":11}},{"id":"34bd0f31-49ea-42dd-a023-409889371d08","block_type":"box","text":"provided to the Fund. This Part I of this SAI should be read in conjunction with the Fund’s Prospectuses and those","page_number":11,"box":{"x":70,"y":143,"width":813,"height":11}},{"id":"ca8231c4-f25f-44d9-9443-dd037153a08c","block_type":"box","text":"portions of Part II of this SAI that pertain to the Fund.","page_number":11,"box":{"x":70,"y":158,"width":381,"height":11}},{"id":"5f8118ef-2146-428f-ab3d-8f825afbf4f4","block_type":"box","text":"I. Investment Objective and Policies","page_number":11,"box":{"x":69,"y":188,"width":262,"height":11}},{"id":"ddfbc0bc-d4a9-4454-9baa-a1134b84077b","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or the","page_number":11,"box":{"x":102,"y":211,"width":799,"height":11}},{"id":"0039382e-f12a-43c3-8e01-89b58a91d11a","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":11,"box":{"x":70,"y":226,"width":784,"height":11}},{"id":"eaf8dd52-f19f-4c4c-94bc-635b9508ef9d","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":11,"box":{"x":69,"y":241,"width":805,"height":11}},{"id":"8681a9fb-842e-4de9-9c4b-a3d0dbc94fc5","block_type":"box","text":"investment in the Fund.","page_number":11,"box":{"x":70,"y":257,"width":165,"height":8}},{"id":"54b18bf1-c25b-4177-9bba-be8522de1240","block_type":"box","text":"Set forth below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":11,"box":{"x":102,"y":279,"width":774,"height":11}},{"id":"cb7f3dd0-a06d-4b96-9db9-c3557a25d4f1","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Part","page_number":11,"box":{"x":69,"y":294,"width":837,"height":11}},{"id":"1f624a1b-bd3c-4558-a869-5f5511879d54","block_type":"box","text":"II of this SAI for further information on these investments and investment strategies. Information contained in Part II","page_number":11,"box":{"x":70,"y":309,"width":828,"height":11}},{"id":"c78444f7-a5bb-471a-808d-97f9efa60bb5","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":11,"box":{"x":69,"y":325,"width":805,"height":11}},{"id":"fea873f8-0285-43fe-9a01-7d2f941d8308","block_type":"box","text":"extent the Fund makes each type of investment or uses each investment strategy. Also set forth below is a listing of","page_number":11,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"c8a07dc5-64c3-45fd-933d-f808a0abeef0","block_type":"box","text":"the proxy voting policy and related guidelines applicable to the Fund. Please see “Proxy Voting Policies and","page_number":11,"box":{"x":68,"y":355,"width":760,"height":11}},{"id":"bf4336f6-b7bf-41b4-bce8-a9fbff1aaa6b","block_type":"box","text":"Procedures” in Part II of this SAI for further information about these policies. A copy of each policy is included in","page_number":11,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"ebba0b21-db88-4289-b261-c2ddc392ac8d","block_type":"box","text":"Appendix B.","page_number":11,"box":{"x":68,"y":385,"width":83,"height":11}},{"id":"c5d9ef68-1c63-4927-9be4-b1f36c827615","block_type":"box","text":"Information that does not apply to a Fund does not form a part of that Fund’s SAI and should not be relied on by","page_number":11,"box":{"x":102,"y":407,"width":802,"height":12}},{"id":"652328c4-9828-4aea-b73f-2a91f7cfb3ac","block_type":"box","text":"investors in that Fund. 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the amount borrowed), (ii) the Fund may borrow up to an","page_number":16,"box":{"x":213,"y":574,"width":621,"height":11}},{"id":"1d00a4b9-f2fc-482c-919c-e0781dc0bec3","block_type":"box","text":"additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short-term credit as may be","page_number":16,"box":{"x":69,"y":589,"width":821,"height":11}},{"id":"dfd7cc47-e56f-4223-9c68-dac34efa7d0a","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund may purchase securities","page_number":16,"box":{"x":69,"y":604,"width":830,"height":11}},{"id":"92eb7109-1875-4b87-8b80-c988b722674a","block_type":"box","text":"on margin to the extent permitted by applicable law. The Fund may not pledge its assets other than to secure such","page_number":16,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"527249e0-0c75-4911-8f43-f1a3575accce","block_type":"box","text":"borrowings or, to the extent permitted by the Fund’s investment policies as set forth in its Prospectus and Statement","page_number":16,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"c91a96d7-b6ec-40d5-a5f4-ddf6e5ee198a","block_type":"box","text":"of Additional Information, as they may be amended from time to time, in connection with hedging transactions, short","page_number":16,"box":{"x":69,"y":649,"width":832,"height":12}},{"id":"c8458c8f-7b3f-42d7-85b5-34cc70ac1c9f","block_type":"box","text":"sales, when-issued and forward commitment transactions and similar investment strategies.","page_number":16,"box":{"x":69,"y":664,"width":660,"height":12}},{"id":"18ce5499-27cc-410d-9cef-ed83cddcc18d","block_type":"box","text":"(8) Underwrite securities of other issuers, except insofar as the Fund technically may be deemed an underwriter","page_number":16,"box":{"x":102,"y":687,"width":798,"height":11}},{"id":"5fe4f4dd-0c9b-49fc-b1be-946a4ac89016","block_type":"box","text":"under the Securities Act of 1933, as amended, in selling portfolio securities.","page_number":16,"box":{"x":69,"y":702,"width":547,"height":12}},{"id":"79799e2f-aa64-495b-a34e-ede2442a33db","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so in","page_number":16,"box":{"x":102,"y":725,"width":790,"height":11}},{"id":"fb5f9b95-628e-4149-ad91-6376af9fc8ef","block_type":"box","text":"accordance with applicable law and the Fund’s Prospectus and Statement of Additional Information, as they may be","page_number":16,"box":{"x":69,"y":740,"width":824,"height":11}},{"id":"494eedda-79de-4cba-825d-c2e671000a76","block_type":"box","text":"amended from time to time, and without registering as a commodity pool operator under the Commodity Exchange","page_number":16,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"6fc36e15-8c0c-4eaf-aeed-f9b552b93f1b","block_type":"box","text":"Act.","page_number":16,"box":{"x":68,"y":771,"width":26,"height":8}},{"id":"6aa88834-bf19-4065-9bd4-9e5ec0735ca5","block_type":"box","text":"Under its non-fundamental investment restrictions, the Fund may not:","page_number":16,"box":{"x":102,"y":793,"width":493,"height":11}},{"id":"3325d337-9732-4fcc-adcf-38c9d65bd095","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":102,"y":816,"width":747,"height":11}},{"id":"ff7e6464-a97b-420a-866b-14187250a796","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":16,"box":{"x":69,"y":831,"width":759,"height":11}},{"id":"99a9c9bf-47e8-41a7-b419-84c731fbef40","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":16,"box":{"x":70,"y":846,"width":829,"height":11}},{"id":"0199beb2-a06d-41f7-a2a3-28de644b55ae","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":16,"box":{"x":70,"y":861,"width":808,"height":11}},{"id":"74593210-800b-4f20-bcd0-904fabaccb34","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":876,"width":763,"height":11}},{"id":"df24c0ae-69f9-403c-8cfd-54e08c49e19b","block_type":"box","text":"I-6","page_number":16,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"346a2e7b-6d69-4052-8fed-df014d96e50a","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da7fa80a-8726-426a-a4c9-18aa7ff2a2fc","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":17,"box":{"x":102,"y":45,"width":770,"height":11}},{"id":"ba53f945-5c3d-406d-b7f9-f7fdbbbff631","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":17,"box":{"x":69,"y":60,"width":741,"height":11}},{"id":"8aefa0eb-5bc8-407c-9a28-062219bb2856","block_type":"box","text":"For the purpose of restriction (2), tax-exempt securities issued by states, municipalities and their political","page_number":17,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"b7265994-2687-4226-969a-e309fc48f8c8","block_type":"box","text":"subdivisions are not considered part of any industry.","page_number":17,"box":{"x":69,"y":98,"width":374,"height":11}},{"id":"5f81f448-4575-4ee6-aaa4-294a49f1d73e","block_type":"box","text":"Notations Regarding the Funds’ Fundamental Investment Restrictions","page_number":17,"box":{"x":102,"y":120,"width":510,"height":11}},{"id":"56f0b4b9-1b7b-42ef-8692-ea93f5eac25f","block_type":"box","text":"The following notations are not considered to be part of the Funds’ fundamental investment restrictions and are","page_number":17,"box":{"x":101,"y":143,"width":799,"height":11}},{"id":"c720f3fe-613a-4f2b-b58c-c3be0eda5d0d","block_type":"box","text":"subject to change without shareholder approval.","page_number":17,"box":{"x":69,"y":158,"width":341,"height":11}},{"id":"2839bc62-0a17-4b7d-8bce-96234160d58b","block_type":"box","text":"For purposes of applying the fundamental policy relating to concentration set forth in (1) above, municipal","page_number":17,"box":{"x":102,"y":181,"width":751,"height":11}},{"id":"78c64cdd-2253-48dc-9cd6-101cea9eb5f6","block_type":"box","text":"securities issued to finance a specific project, such as industrial development bonds and private activity bonds, are","page_number":17,"box":{"x":69,"y":196,"width":823,"height":11}},{"id":"f795ae86-853b-4190-ab37-464558f77a54","block_type":"box","text":"not excluded from a Fund’s 25% industry concentration limit, as they are considered to be in the industry of the","page_number":17,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"129e48a7-137c-4324-af48-8eec8e7f112d","block_type":"box","text":"relevant project. There also will be no limit on investment in issuers domiciled in a single jurisdiction or country.","page_number":17,"box":{"x":69,"y":226,"width":795,"height":11}},{"id":"13290cb9-1b79-4089-96d0-450772b87f64","block_type":"box","text":"Finance companies will be considered to be in the industries of their parents if their activities are primarily related to","page_number":17,"box":{"x":70,"y":241,"width":830,"height":11}},{"id":"5feced2a-5428-4a99-9cd0-135d413d4397","block_type":"box","text":"financing the activities of the parents. Each foreign government will be considered to be a member of a separate","page_number":17,"box":{"x":68,"y":256,"width":803,"height":12}},{"id":"0687e650-e26e-4b95-9ad0-7aba59513a54","block_type":"box","text":"industry. With respect to each Fund’s industry classifications, a Fund currently utilizes any one or more of the","page_number":17,"box":{"x":70,"y":271,"width":779,"height":12}},{"id":"fa2109a5-caa8-4600-aa5a-582fc28f80b0","block_type":"box","text":"industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as","page_number":17,"box":{"x":70,"y":286,"width":836,"height":12}},{"id":"0efe7af1-ee45-47e7-9b13-fe558d38ad29","block_type":"box","text":"defined by Fund management. The policy also will be interpreted to give broad authority to each Fund as to how to","page_number":17,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"d1595050-8fb2-4e70-ad4e-d216344035a5","block_type":"box","text":"classify issuers within or among industries.","page_number":17,"box":{"x":69,"y":317,"width":306,"height":11}},{"id":"0e4e28b5-8aab-41e8-b736-06d12cf1ccce","block_type":"box","text":"With respect to the fundamental policy relating to borrowing set forth in (6) above, the policy does not restrict","page_number":17,"box":{"x":101,"y":339,"width":782,"height":12}},{"id":"432e7bd3-1139-4bef-847c-3f68c4456aef","block_type":"box","text":"each Fund from obtaining leverage through tender option bond trust transactions, provided that the Fund either","page_number":17,"box":{"x":69,"y":355,"width":791,"height":11}},{"id":"7ea7cd98-f02e-4829-9d17-7b0e5a9b3c1d","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":17,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"80cdae5c-9f31-4de0-8d35-d1d331db4b52","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “Investment Risks and","page_number":17,"box":{"x":69,"y":385,"width":823,"height":11}},{"id":"eb4135cf-cd7c-40fc-81a2-48a1dc415976","block_type":"box","text":"Considerations -- Derivatives -- Regulation of Derivatives -- Rule 18f-4 under the Investment Company Act” below.","page_number":17,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"e759464e-a640-4a9c-855e-22796e55ae04","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set forth in (7) above, the Investment Company","page_number":17,"box":{"x":101,"y":423,"width":788,"height":11}},{"id":"9cfec63e-4302-43e0-9951-0bea1ff01f89","block_type":"box","text":"Act does not prohibit a Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":17,"box":{"x":68,"y":438,"width":826,"height":11}},{"id":"a49850fb-a15d-43b9-a596-a546b119c6de","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits each Fund to have underwriting","page_number":17,"box":{"x":70,"y":453,"width":836,"height":11}},{"id":"e4d6b8a3-f067-40c9-88ec-eac119b9a01c","block_type":"box","text":"commitments of up to 25% of its assets under certain circumstances. Those circumstances currently are that the","page_number":17,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"a47a444f-c155-4f28-8a13-d57f0c14aa86","block_type":"box","text":"amount of a Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers where","page_number":17,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"97aaa833-9124-4a36-98e6-7b2e4e1be450","block_type":"box","text":"the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25% cap. A","page_number":17,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"889dd909-0cfe-4f33-9cbe-3c7aacf06854","block_type":"box","text":"fund engaging in transactions involving the acquisition or disposition of portfolio securities may be considered to be","page_number":17,"box":{"x":68,"y":513,"width":826,"height":12}},{"id":"7529f872-5d11-4571-a0f7-ec1304f942d9","block_type":"box","text":"an underwriter under the Securities Act. Although it is not believed that the application of the Securities Act","page_number":17,"box":{"x":69,"y":528,"width":766,"height":12}},{"id":"b2abf724-718e-467a-809e-38059913ced8","block_type":"box","text":"provisions described above would cause a Fund to be engaged in the business of underwriting, the policy in (7) above","page_number":17,"box":{"x":70,"y":543,"width":838,"height":12}},{"id":"4ce726a4-74f6-44e0-9423-036cd77c99f7","block_type":"box","text":"will be interpreted not to prevent a Fund from engaging in transactions involving the acquisition or disposition of","page_number":17,"box":{"x":68,"y":559,"width":798,"height":11}},{"id":"cbda749e-5b99-4130-93d0-dc995030c130","block_type":"box","text":"portfolio securities, regardless of whether the Fund may be considered to be an underwriter under the Securities Act","page_number":17,"box":{"x":70,"y":574,"width":830,"height":11}},{"id":"d60b4379-664a-4ef4-857e-51c5a2e7fe58","block_type":"box","text":"or is otherwise engaged in the underwriting business to the extent permitted by applicable law.","page_number":17,"box":{"x":69,"y":589,"width":676,"height":11}},{"id":"60db8e35-0894-46cc-aa40-d4f1179c5af5","block_type":"box","text":"Unless otherwise indicated, all limitations under each Fund’s fundamental or non-fundamental investment","page_number":17,"box":{"x":102,"y":612,"width":755,"height":10}},{"id":"fa38896b-c756-479c-9105-929fb79f245b","block_type":"box","text":"restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of a Fund’s assets","page_number":17,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"591c14b2-7e78-4231-a1d5-dd7f4a2361b2","block_type":"box","text":"invested in certain securities or other instruments resulting from market fluctuations or other changes in a Fund’s","page_number":17,"box":{"x":70,"y":642,"width":811,"height":11}},{"id":"7295c070-8726-4f4d-9da5-a4bd2d2b54d3","block_type":"box","text":"total assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to","page_number":17,"box":{"x":68,"y":657,"width":832,"height":11}},{"id":"8322e3e6-4a32-4497-ac16-4e81569e9275","block_type":"box","text":"sell or close out the investment without undue market or tax consequences.","page_number":17,"box":{"x":69,"y":672,"width":541,"height":11}},{"id":"4a254778-4ba0-426f-a3e2-087e99459f09","block_type":"box","text":"Except with respect to restriction (7), if a percentage restriction on the investment or use of assets set forth","page_number":17,"box":{"x":102,"y":695,"width":772,"height":11}},{"id":"0ce1deea-d9b6-424e-b231-6dd08b43aeea","block_type":"box","text":"above is adhered to at the time a transaction is effected, later changes in percentages resulting from changing","page_number":17,"box":{"x":69,"y":710,"width":792,"height":11}},{"id":"73d09a32-8e8a-41f0-b3e3-e410d13a13b0","block_type":"box","text":"values will not be considered a violation.","page_number":17,"box":{"x":68,"y":725,"width":289,"height":9}},{"id":"271ac4e8-59b5-4f3b-985a-066b0a6629af","block_type":"box","text":"III. Information on Trustees and Officers","page_number":17,"box":{"x":69,"y":755,"width":290,"height":9}},{"id":"90813907-7078-41be-9b57-c1f224232b19","block_type":"box","text":"The Board of Trustees of the Trust consists of ten individuals (each a “Trustee”), eight of whom are not","page_number":17,"box":{"x":101,"y":778,"width":738,"height":11}},{"id":"7502a3cf-d6ae-495f-a1af-114b73771270","block_type":"box","text":"“interested persons” of the Trust as defined in the Investment Company Act (the “Independent Trustees”). The","page_number":17,"box":{"x":70,"y":793,"width":789,"height":11}},{"id":"28c0dcd6-b930-4627-a9eb-eac679b3cca8","block_type":"box","text":"registered investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are","page_number":17,"box":{"x":69,"y":808,"width":785,"height":11}},{"id":"b4ebd6ea-c4ca-4f45-b28b-734dbd42259d","block_type":"box","text":"organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":17,"box":{"x":69,"y":823,"width":818,"height":12}},{"id":"807a896d-0702-462c-8b10-6d717b8b2f86","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Fund is included in the BlackRock Fund Complex referred to as the","page_number":17,"box":{"x":69,"y":838,"width":776,"height":11}},{"id":"01277d0e-a57e-491c-a83f-0aefafdbc0a6","block_type":"box","text":"BlackRock Fixed-Income Complex. The Trustees also oversee as board members the operations of the other open-end","page_number":17,"box":{"x":70,"y":853,"width":838,"height":11}},{"id":"5ee94553-2fc9-4791-b413-0758adb0bf80","block_type":"box","text":"and closed-end registered investment companies included in the BlackRock Fixed-Income Complex.","page_number":17,"box":{"x":69,"y":869,"width":704,"height":11}},{"id":"1fdddf0a-cdac-4cf5-87cc-777d3f316812","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board and the","page_number":17,"box":{"x":101,"y":891,"width":789,"height":12}},{"id":"05fef38a-8def-4988-b102-5cd05787fcc0","block_type":"box","text":"Chief Executive Officer are different people. Not only is the Chair of the Board an Independent Trustee, but also the","page_number":17,"box":{"x":69,"y":906,"width":823,"height":12}},{"id":"69797a23-8a19-45a8-a5ee-be9c18f003a8","block_type":"box","text":"I-7","page_number":17,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"59991322-272b-4d8e-bfe6-ce656c5b932f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03bc06a0-04b7-4280-8963-def9a6ed956b","block_type":"box","text":"Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The Board has seven standing","page_number":18,"box":{"x":69,"y":45,"width":804,"height":11}},{"id":"b68142f7-5442-4611-9552-f568c0f76929","block_type":"box","text":"Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a","page_number":18,"box":{"x":69,"y":60,"width":750,"height":11}},{"id":"e33d2deb-7e2a-40db-a386-9f1c933c21f5","block_type":"box","text":"Performance Oversight Committee, a Securities Lending Committee, an Executive Committee and a Private Assets","page_number":18,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"a231e3fc-187c-4a32-a4f6-567c59cd2cfb","block_type":"box","text":"Committee. The role of the Chair of the Board is to preside over all meetings of the Board and to act as a liaison with","page_number":18,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"a7999b20-4859-4aee-8e4a-6940efd22caa","block_type":"box","text":"service providers, officers, attorneys, and other Trustees between meetings. The Chair of each Committee performs","page_number":18,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"700cd63c-a148-4860-a4d1-d5f03fb25d4d","block_type":"box","text":"a similar role with respect to the Committee. The Chair of the Board or a Committee may also perform such other","page_number":18,"box":{"x":69,"y":120,"width":810,"height":11}},{"id":"75887efa-2d1f-443a-bc70-0653964eac6c","block_type":"box","text":"functions as may be delegated by the Board or the Committee from time to time. The Independent Trustees meet","page_number":18,"box":{"x":68,"y":135,"width":809,"height":12}},{"id":"8b055a21-c273-4ee4-a2e7-9d6968c9d0b9","block_type":"box","text":"regularly outside the presence of the Fund’s management, in executive sessions or with other service providers to","page_number":18,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"968e0c3c-d877-46d4-9122-c726639f5f84","block_type":"box","text":"the Fund. The Board has regular meetings five times a year, including a meeting to consider the approval of the","page_number":18,"box":{"x":68,"y":166,"width":794,"height":11}},{"id":"fcff1db7-257d-497e-b555-77b3af8e2fbf","block_type":"box","text":"Fund’s investment management agreement, and, if necessary, may hold special meetings before its next regular","page_number":18,"box":{"x":70,"y":181,"width":802,"height":11}},{"id":"40b7eb70-3375-4e99-a5c4-08681c8d0d26","block_type":"box","text":"meeting. The Audit Committee, the Governance and Nominating Committee, the Compliance Committee, the","page_number":18,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"5a5a6196-7e32-46eb-8fa4-450aeff91f69","block_type":"box","text":"Performance Oversight Committee, the Securities Lending Committee, and the Private Assets Committee each meets","page_number":18,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"72d44215-d7e1-4a79-8744-4ad456e41ee0","block_type":"box","text":"regularly and the Executive Committee meets on an ad hoc basis to conduct the oversight functions delegated to that","page_number":18,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"aca29fd9-f4e2-4f33-930a-4d5da04ac104","block_type":"box","text":"Committee by the Board and reports its findings to the Board. The Board and each standing Committee conduct","page_number":18,"box":{"x":69,"y":241,"width":799,"height":11}},{"id":"97e18612-8071-42d9-ac29-41797facef5a","block_type":"box","text":"annual assessments of their oversight function and structure. The Board has determined that the Board’s leadership","page_number":18,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"86c4e8f1-74e0-4479-8e84-c42f94f22696","block_type":"box","text":"structure is appropriate because it allows the Board to exercise independent judgment over management and to","page_number":18,"box":{"x":69,"y":272,"width":800,"height":11}},{"id":"333f3bd0-e07c-49f7-bb49-e3f65240f5eb","block_type":"box","text":"allocate areas of responsibility among Committees and the Board to enhance oversight.","page_number":18,"box":{"x":69,"y":286,"width":625,"height":12}},{"id":"4a550581-80ec-45cf-adf7-c016d91230fb","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that having","page_number":18,"box":{"x":101,"y":309,"width":805,"height":11}},{"id":"91019d5f-9725-41f0-9535-2723968679a8","block_type":"box","text":"an independent Chair:","page_number":18,"box":{"x":69,"y":324,"width":155,"height":11}},{"id":"429e4c92-d648-44e8-b83d-a9c728989055","block_type":"box","text":"•","page_number":18,"box":{"x":102,"y":347,"width":6,"height":5}},{"id":"6f1ffc33-023d-454a-b472-5d4fb66303f6","block_type":"box","text":"increases the independent oversight of the Fund and enhances the Board’s objective evaluation of the Chief","page_number":18,"box":{"x":135,"y":344,"width":771,"height":12}},{"id":"06fa2534-d1b4-42d8-9116-83833ba3410a","block_type":"box","text":"Executive Officer;","page_number":18,"box":{"x":135,"y":360,"width":121,"height":10}},{"id":"91aecf4d-383b-4358-8c39-62389a0f5029","block_type":"box","text":"•","page_number":18,"box":{"x":102,"y":383,"width":6,"height":4}},{"id":"9e6b4061-6046-4bc6-a618-e083f6c9ce2a","block_type":"box","text":"allows the Chief Executive Officer to focus on the Fund’s operations instead of Board administration;","page_number":18,"box":{"x":134,"y":380,"width":717,"height":11}},{"id":"519221f0-a6c4-4728-a4e3-4834b81b6fbc","block_type":"box","text":"•","page_number":18,"box":{"x":102,"y":403,"width":6,"height":4}},{"id":"6b4a893e-1296-4473-8e97-e6a4586407bd","block_type":"box","text":"provides greater opportunities for direct and independent communication between shareholders and the","page_number":18,"box":{"x":135,"y":400,"width":742,"height":11}},{"id":"c19ef0d1-eef0-4bef-b706-341e2da95e2f","block_type":"box","text":"Board; and","page_number":18,"box":{"x":135,"y":415,"width":76,"height":11}},{"id":"84807a56-e51b-4058-8367-0e0385ff97ab","block_type":"box","text":"•","page_number":18,"box":{"x":102,"y":438,"width":6,"height":5}},{"id":"8687ef0b-9b5f-4ffc-9a77-7b6abbd7c897","block_type":"box","text":"provides an independent spokesman for the Fund.","page_number":18,"box":{"x":135,"y":435,"width":356,"height":11}},{"id":"9b8182f2-37dc-4d8f-94ad-54b7aac2636f","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":18,"box":{"x":101,"y":458,"width":777,"height":11}},{"id":"f9358501-b869-478a-8ba5-8507c92b00c3","block_type":"box","text":"overseeing the Manager, sub-advisers other service providers, the operations of the Fund and associated risks in","page_number":18,"box":{"x":69,"y":473,"width":806,"height":11}},{"id":"4dcd1143-ea1c-4269-aa9d-ee6742799f40","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter,","page_number":18,"box":{"x":69,"y":488,"width":826,"height":11}},{"id":"fa29c969-a836-463a-9a36-d3868424b848","block_type":"box","text":"and the Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s","page_number":18,"box":{"x":69,"y":503,"width":743,"height":12}},{"id":"b6952188-15cb-47fc-9c37-20b078bfbd94","block_type":"box","text":"performance, operations, and investment strategies and techniques. The Board also conducts reviews of the","page_number":18,"box":{"x":70,"y":518,"width":776,"height":12}},{"id":"e0483b23-dd2f-4252-8898-cb098de63399","block_type":"box","text":"Manager and its role in running the operations of the Fund.","page_number":18,"box":{"x":70,"y":533,"width":419,"height":12}},{"id":"1b5f9ef7-23f8-4df5-9edb-2ac4d61385aa","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager, sub-advisers or other","page_number":18,"box":{"x":102,"y":556,"width":793,"height":11}},{"id":"1318e073-8941-433d-a9b1-a29bd5717e15","block_type":"box","text":"service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":18,"box":{"x":69,"y":571,"width":787,"height":12}},{"id":"0c5f9c8b-fe04-47f5-aac2-820c4deafe1a","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":18,"box":{"x":69,"y":586,"width":832,"height":12}},{"id":"e51a9355-7e5d-4da7-bcbd-33f1941eea59","block_type":"box","text":"there are a number of risk management functions performed by the Manager, sub-advisers or other service providers,","page_number":18,"box":{"x":68,"y":601,"width":839,"height":12}},{"id":"36774c9b-d18f-48e3-ab3f-c88f60ec147f","block_type":"box","text":"as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight is part of the","page_number":18,"box":{"x":69,"y":617,"width":789,"height":11}},{"id":"2b502a3d-7417-4148-98ba-c2bdc9d869fe","block_type":"box","text":"Board’s general oversight of the Fund and is addressed as part of various Board and Committee activities. The","page_number":18,"box":{"x":70,"y":632,"width":790,"height":11}},{"id":"cbf2540d-b5cc-48ee-883b-22ddcd7043fa","block_type":"box","text":"Board, directly or through Committees, also reviews reports from, among others, management, the independent","page_number":18,"box":{"x":70,"y":647,"width":799,"height":11}},{"id":"29d41bd2-7755-4d7e-b1ba-42dba8233c89","block_type":"box","text":"registered public accounting firm for the Fund, the Manager, sub-advisers and internal auditors for the Manager or its","page_number":18,"box":{"x":69,"y":662,"width":833,"height":11}},{"id":"bfaf3a82-c3a5-4297-ab31-c730e93ccf93","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s risk","page_number":18,"box":{"x":69,"y":677,"width":774,"height":11}},{"id":"f4890dd5-0ca1-4c8c-b90c-edb5acbc736b","block_type":"box","text":"functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees and","page_number":18,"box":{"x":68,"y":692,"width":809,"height":11}},{"id":"f97348cd-1550-4617-8046-a0118a34d05f","block_type":"box","text":"facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities and","page_number":18,"box":{"x":68,"y":707,"width":818,"height":12}},{"id":"01b4fb56-3556-4d50-b4de-def03896437f","block_type":"box","text":"associated risks. The Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":18,"box":{"x":69,"y":722,"width":831,"height":11}},{"id":"2966ace2-9b61-484e-8a93-b01698a9dfe7","block_type":"box","text":"implementation and testing of the Fund’s compliance program and reports regularly to the Board regarding","page_number":18,"box":{"x":70,"y":738,"width":760,"height":11}},{"id":"885efb11-e4b1-4ccc-97cb-20c68860d01a","block_type":"box","text":"compliance matters for the Fund and its service providers. The Independent Trustees have engaged independent","page_number":18,"box":{"x":69,"y":753,"width":804,"height":11}},{"id":"d59a29e9-ec02-4ea0-8b95-2615eb80f7d0","block_type":"box","text":"legal counsel to assist them in performing their oversight responsibilities.","page_number":18,"box":{"x":70,"y":768,"width":524,"height":11}},{"id":"c19becec-9961-4a22-be48-75902705bbd9","block_type":"box","text":"Audit Committee.","page_number":18,"box":{"x":101,"y":791,"width":122,"height":8}},{"id":"0d6ff351-8b96-4159-861f-a35d2ae42482","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":18,"box":{"x":229,"y":790,"width":651,"height":12}},{"id":"b1b3f3e4-6246-436a-820f-ec1b089b4201","block_type":"box","text":"Holloman, Francis C. Mahoney and Arthur P. Steinmetz, all of whom are Independent Trustees. The principal","page_number":18,"box":{"x":70,"y":806,"width":767,"height":11}},{"id":"195087b8-5c46-4cdd-9cc3-52ff38b3be65","block_type":"box","text":"responsibilities of the Audit Committee are to assist the Board in fulfilling its oversight responsibilities relating to the","page_number":18,"box":{"x":69,"y":821,"width":834,"height":11}},{"id":"0a527b70-d533-4bc9-89d3-36b0701f0a98","block_type":"box","text":"accounting and financial reporting policies and practices of the Fund. The Audit Committee’s responsibilities include,","page_number":18,"box":{"x":69,"y":836,"width":832,"height":11}},{"id":"7ac21f91-1069-4e76-bb52-f674fa56a28b","block_type":"box","text":"without limitation: (i) approving, and recommending to the full Board for approval, the selection, retention, termination","page_number":18,"box":{"x":68,"y":851,"width":840,"height":11}},{"id":"c8070c2a-2d2b-452f-a17e-46185b4fe68c","block_type":"box","text":"and compensation of the Fund’s independent registered public accounting firm (the “Independent Registered Public","page_number":18,"box":{"x":69,"y":866,"width":823,"height":11}},{"id":"8b43a752-10bf-4ffa-95ba-a1e91af5feae","block_type":"box","text":"Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public Accounting","page_number":18,"box":{"x":68,"y":881,"width":824,"height":11}},{"id":"85981f60-ce1e-41db-9c2e-29f1d1934b1e","block_type":"box","text":"Firm; (ii) approving all audit engagement terms and fees for the Fund; (iii) reviewing the conduct and results of each","page_number":18,"box":{"x":70,"y":896,"width":822,"height":12}},{"id":"6dceb433-a455-48fb-b079-7324e330830a","block_type":"box","text":"audit; (iv) reviewing any issues raised by the Fund’s Independent Registered Public Accounting Firm or management","page_number":18,"box":{"x":69,"y":912,"width":824,"height":11}},{"id":"1dc0a12d-aa2a-47da-80e3-f714c811fe1b","block_type":"box","text":"I-8","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d84ab124-13a4-4fca-8b97-2fc92654e078","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d0703a1-9dc9-4312-acdd-b3e8378d5342","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund, its internal controls, and, as","page_number":19,"box":{"x":69,"y":45,"width":785,"height":11}},{"id":"f5f86773-efcd-4dd1-92e6-ce64dfc9759c","block_type":"box","text":"appropriate, the internal controls of certain service providers and management’s response to any such issues;","page_number":19,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"ab76e467-4a90-4b61-83b3-898b01872687","block_type":"box","text":"(v) reviewing and discussing the Fund’s audited and unaudited financial statements and disclosure in the Fund’s","page_number":19,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"f984da02-3330-4924-be8a-d4f3583863f9","block_type":"box","text":"shareholder reports relating to the Fund’s performance; (vi) assisting the Board’s responsibilities with respect to the","page_number":19,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"a5bcc11e-1d74-467f-9ec3-ed0733198f08","block_type":"box","text":"internal controls of the Fund and its service providers with respect to accounting and financial matters; and","page_number":19,"box":{"x":70,"y":105,"width":764,"height":11}},{"id":"b47bd4e8-d515-42bd-b194-e58a10d04039","block_type":"box","text":"(vii) resolving any disagreements between the Fund’s management and the Fund’s Independent Registered Public","page_number":19,"box":{"x":69,"y":120,"width":809,"height":12}},{"id":"3ab03705-2c5a-451d-ad68-64d706b14de9","block_type":"box","text":"Accounting Firm regarding financial reporting. The Board has adopted a written charter for the Board’s Audit","page_number":19,"box":{"x":68,"y":135,"width":770,"height":12}},{"id":"febff8a5-f9d5-40a4-b5d0-09784e6a2d4f","block_type":"box","text":"Committee. During the fiscal year ended May 31, 2026, the Audit Committee met three times.","page_number":19,"box":{"x":69,"y":150,"width":672,"height":12}},{"id":"65cc41d7-3295-42fb-af5c-d31310b012c2","block_type":"box","text":"Governance and Nominating Committee.","page_number":19,"box":{"x":102,"y":173,"width":286,"height":11}},{"id":"0d4e6f17-e547-43c3-8cff-59d5b4b5126c","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":19,"box":{"x":394,"y":173,"width":471,"height":11}},{"id":"b3302d6b-f074-48b0-9ffd-0caa1275d497","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman and R. Glenn Hubbard, all of whom are","page_number":19,"box":{"x":69,"y":188,"width":791,"height":12}},{"id":"17c405e9-f190-4ad3-ad36-dcce155a68a3","block_type":"box","text":"Independent Trustees. The principal responsibilities of the Governance and Nominating Committee are: (i) identifying","page_number":19,"box":{"x":70,"y":203,"width":830,"height":12}},{"id":"38668e94-722d-48c0-bea3-7431d6f77ad9","block_type":"box","text":"individuals qualified to serve as Independent Trustees and recommending Board nominees that are not “interested","page_number":19,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"3c34f9cd-6dec-4e75-b022-dd1c444781cd","block_type":"box","text":"persons” of the Fund (as defined in the Investment Company Act) for election by shareholders or appointment by the","page_number":19,"box":{"x":70,"y":234,"width":829,"height":11}},{"id":"e358e19a-9096-479f-a1e5-25be75e7fd9e","block_type":"box","text":"Board; (ii) advising the Board with respect to Board composition, procedures and Committees of the Board (other","page_number":19,"box":{"x":70,"y":249,"width":806,"height":11}},{"id":"5104fa07-1e31-497b-8bab-899a6be7eb36","block_type":"box","text":"than the Audit Committee); (iii) overseeing periodic self-assessments of the Board and Committees of the Board","page_number":19,"box":{"x":68,"y":264,"width":800,"height":11}},{"id":"0017ade3-5c36-4c15-8f4c-373b8776d3e6","block_type":"box","text":"(other than the Audit Committee); (iv) reviewing and making recommendations in respect to Independent Trustee","page_number":19,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"c5885b37-9151-4710-b4b9-6796ec11b5e5","block_type":"box","text":"compensation; (v) monitoring corporate governance matters and making recommendations in respect thereof to the","page_number":19,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"4a55765f-1350-4ff1-9a3d-ef17960bbf95","block_type":"box","text":"Board; (vi) acting as the administrative committee with respect to Board policies and procedures, committee policies","page_number":19,"box":{"x":70,"y":309,"width":831,"height":11}},{"id":"1836e34e-2e7f-4182-86c8-3ea291ff7cb5","block_type":"box","text":"and procedures (other than the Audit Committee) and codes of ethics as they relate to the Independent Trustees;","page_number":19,"box":{"x":69,"y":324,"width":808,"height":11}},{"id":"135170bc-e3b3-425e-bbaf-9f519bf87477","block_type":"box","text":"and (vii) reviewing and making recommendations to the Board in respect of Fund share ownership by the Independent","page_number":19,"box":{"x":69,"y":339,"width":838,"height":12}},{"id":"5aa68746-f61f-4d52-b596-c454cb9a6b2f","block_type":"box","text":"Trustees. The Board has adopted a written charter for the Board’s Governance and Nominating Committee. During","page_number":19,"box":{"x":68,"y":355,"width":817,"height":11}},{"id":"455827aa-e27e-4b44-8def-dd06baf1ce33","block_type":"box","text":"the fiscal year ended May 31, 2026, the Governance and Nominating Committee met four times.","page_number":19,"box":{"x":68,"y":370,"width":690,"height":11}},{"id":"02085a2c-982a-46ff-9a22-59c61127e74d","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board who","page_number":19,"box":{"x":101,"y":392,"width":803,"height":12}},{"id":"008c2d1f-1f01-467f-bad7-4ebe6ee478ec","block_type":"box","text":"have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the Board will be","page_number":19,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"5385cc3c-5f84-4072-8dcd-0c2849bc37ff","block_type":"box","text":"better suited to fulfill its responsibility of overseeing the Fund’s activities. In so doing, the Governance and","page_number":19,"box":{"x":69,"y":423,"width":759,"height":11}},{"id":"d947ca3f-5035-4971-968f-4aceaa0c722f","block_type":"box","text":"Nominating Committee reviews the size of the Board, the ages of the current Trustees and their tenure on the Board,","page_number":19,"box":{"x":70,"y":438,"width":833,"height":11}},{"id":"f20cfd8f-70e4-4f8b-93df-0f595c423878","block_type":"box","text":"and the skills, background and experiences of the Trustees in light of the issues facing the Fund in determining","page_number":19,"box":{"x":69,"y":453,"width":794,"height":11}},{"id":"1d7ba0da-7ed0-4680-b8ad-568f21651436","block_type":"box","text":"whether one or more new trustees should be added to the Board. The Board as a group strives to achieve diversity in","page_number":19,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"a7597c24-ae6f-4025-9bca-99f6d3689351","block_type":"box","text":"terms of gender, race and geographic location. The Governance and Nominating Committee believes that the","page_number":19,"box":{"x":68,"y":483,"width":775,"height":11}},{"id":"3f8682c5-844c-475c-b8ae-f4dad309548c","block_type":"box","text":"Trustees as a group possess the array of skills, experiences and backgrounds necessary to guide the Fund. The","page_number":19,"box":{"x":68,"y":498,"width":801,"height":11}},{"id":"597807c8-da4f-4d1d-b44d-c9b9bd335bd2","block_type":"box","text":"Trustees’ biographies included herein highlight the diversity and breadth of skills, qualifications and expertise that","page_number":19,"box":{"x":68,"y":513,"width":815,"height":12}},{"id":"3e4dcce4-f548-4671-8c1c-fde62cc49d16","block_type":"box","text":"the Trustees bring to the Fund.","page_number":19,"box":{"x":68,"y":529,"width":219,"height":11}},{"id":"99f0a05a-4ef7-420d-8fa0-183a2516d2da","block_type":"box","text":"The Governance and Nominating Committee may consider nominations for Trustees made by the Fund’s","page_number":19,"box":{"x":101,"y":551,"width":741,"height":11}},{"id":"6bd6ff6b-cd5b-49fa-bfea-cb8544507ce0","block_type":"box","text":"shareholders as it deems appropriate. Under the Trust’s Bylaws, shareholders must follow certain procedures to","page_number":19,"box":{"x":69,"y":566,"width":803,"height":11}},{"id":"cdc340cf-ade3-4718-aad1-53d06e97386a","block_type":"box","text":"nominate a person for election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under","page_number":19,"box":{"x":69,"y":581,"width":805,"height":12}},{"id":"d996b20d-6961-4026-a47c-5badf868efe0","block_type":"box","text":"these advance notice procedures, shareholders must submit the proposed nominee by delivering a notice to the","page_number":19,"box":{"x":68,"y":597,"width":801,"height":11}},{"id":"a30a08f1-955a-4b0e-823f-1728051db0ba","block_type":"box","text":"Secretary of the Fund at its principal executive offices no later than the close of business on the fifth (5th) day","page_number":19,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"0f011c41-97ba-494f-9562-fe213b71f6b7","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":19,"box":{"x":68,"y":627,"width":784,"height":11}},{"id":"81b64aab-9397-45a2-97bb-25959739c904","block_type":"box","text":"meeting was made, whichever first occurs.","page_number":19,"box":{"x":69,"y":642,"width":302,"height":11}},{"id":"a4ea84b6-03ba-4b92-bbaa-4364a524ca32","block_type":"box","text":"The Trust’s Bylaws provide that notice of a proposed nomination must include certain information about the","page_number":19,"box":{"x":101,"y":664,"width":769,"height":12}},{"id":"2be0fb0d-8a00-4fcd-a4f4-29e7b92d55e8","block_type":"box","text":"shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":19,"box":{"x":69,"y":680,"width":791,"height":11}},{"id":"d903011c-e559-4144-8e8d-a88f52beb630","block_type":"box","text":"nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details.","page_number":19,"box":{"x":69,"y":695,"width":615,"height":11}},{"id":"eb777410-528d-4403-b9be-1a3b4b042b9a","block_type":"box","text":"Compliance Committee.","page_number":19,"box":{"x":102,"y":718,"width":168,"height":10}},{"id":"2fd0fa1d-ec13-45ed-9005-02b92a21c31c","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair), Stayce D.","page_number":19,"box":{"x":276,"y":717,"width":628,"height":12}},{"id":"3f666316-9140-4085-8e67-40f0644d245b","block_type":"box","text":"Harris, R. Glenn Hubbard, W. Carl Kester and Francis C. Mahoney, all of whom are Independent Trustees. The","page_number":19,"box":{"x":70,"y":732,"width":778,"height":12}},{"id":"88da0ebb-3a69-4fd7-93a4-771448ea5b7d","block_type":"box","text":"Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility with respect to the oversight of","page_number":19,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"bacc2962-2fbf-450b-a710-c9decf93559f","block_type":"box","text":"regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of BlackRock, and any sub","page_number":19,"box":{"x":69,"y":763,"width":833,"height":11}},{"id":"f884b00f-f4d8-41c9-abeb-e6e1704138c9","block_type":"box","text":"advisers and the Fund’s other third party service providers. The Compliance Committee’s responsibilities include,","page_number":19,"box":{"x":69,"y":778,"width":810,"height":11}},{"id":"f818d3d9-e781-403c-ae22-2ed4008b9b52","block_type":"box","text":"without limitation: (i) overseeing the compliance policies and procedures of the Fund and its service providers and","page_number":19,"box":{"x":68,"y":793,"width":813,"height":11}},{"id":"bd0164c8-63f4-4ff9-8d17-38f3e4f61dac","block_type":"box","text":"recommending changes or additions to such policies and procedures; (ii) reviewing information on and, where","page_number":19,"box":{"x":69,"y":808,"width":781,"height":11}},{"id":"93b6c5ec-eddb-4e37-81ea-1493e322172f","block_type":"box","text":"appropriate, recommending policies concerning the Fund’s compliance with applicable law; (iii) reviewing information","page_number":19,"box":{"x":69,"y":823,"width":829,"height":12}},{"id":"3d6f42c6-cf60-43d9-a634-640fdd4f7b5c","block_type":"box","text":"on any significant correspondence with or other actions by regulators or governmental agencies with respect to the","page_number":19,"box":{"x":69,"y":838,"width":818,"height":12}},{"id":"e7d7425e-0c84-42cb-957d-83c35ad08dea","block_type":"box","text":"Fund and any employee complaints or published reports that raise concerns regarding compliance matters; and","page_number":19,"box":{"x":70,"y":854,"width":794,"height":11}},{"id":"16164baa-de72-4ccf-b1bb-8147f60e2cd6","block_type":"box","text":"(iv) reviewing reports from, overseeing the annual performance review of, and making certain recommendations in","page_number":19,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"c339bec8-8957-4ad0-b879-6676d2d0da7e","block_type":"box","text":"respect of, the Fund’s CCO, including, without limitation, determining the amount and structure of the CCO’s","page_number":19,"box":{"x":69,"y":884,"width":773,"height":11}},{"id":"a9a4eb2a-0dc2-4685-8145-5ff5b796009f","block_type":"box","text":"I-9","page_number":19,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"a914fccc-7ec8-4c05-a201-ab7be6511a9e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34fcc537-cb3b-46a7-919b-1c28ac44d6df","block_type":"box","text":"compensation. The Board has adopted a written charter for the Board’s Compliance Committee. During the fiscal","page_number":20,"box":{"x":69,"y":45,"width":806,"height":11}},{"id":"902ae7bc-ddf8-447c-b604-23117b5e026c","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met three times.","page_number":20,"box":{"x":68,"y":60,"width":512,"height":11}},{"id":"45547c62-da4c-4b22-841b-da54792d1571","block_type":"box","text":"Per formance Oversight Committee.","page_number":20,"box":{"x":102,"y":82,"width":248,"height":12}},{"id":"7e912159-a64d-44f8-b883-4f1538aa957a","block_type":"box","text":"The Board has a Performance Oversight Committee composed of Arthur P.","page_number":20,"box":{"x":356,"y":82,"width":530,"height":12}},{"id":"21c28e81-164a-4c3a-addb-87246626195c","block_type":"box","text":"Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman, R. Glenn Hubbard and W.","page_number":20,"box":{"x":69,"y":98,"width":828,"height":11}},{"id":"a940a221-e7df-4403-9069-e2f7800299de","block_type":"box","text":"Carl Kester, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is to assist the","page_number":20,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"7ea1aa8e-3e02-43b2-8e57-c05003766b5f","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to the Fund’s investment","page_number":20,"box":{"x":70,"y":128,"width":819,"height":11}},{"id":"d517a6f5-d63f-4694-8bba-3bb55dce82d8","block_type":"box","text":"objective, policies and practices. The Performance Oversight Committee’s responsibilities include, without limitation:","page_number":20,"box":{"x":69,"y":143,"width":832,"height":11}},{"id":"d7f3a6ec-afbf-4591-ae5f-bf2cadc93440","block_type":"box","text":"(i) reviewing the Fund’s investment objective, policies and practices; (ii) recommending to the Board any required","page_number":20,"box":{"x":69,"y":158,"width":803,"height":11}},{"id":"625a2339-4c60-421b-8573-ebc369718ef9","block_type":"box","text":"action in respect of changes in fundamental and non-fundamental investment restrictions; (iii) reviewing information","page_number":20,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"15ca96b3-c9f0-4ed7-915e-17600945eaee","block_type":"box","text":"on appropriate benchmarks and competitive universes; (iv) reviewing the Fund’s investment performance relative to","page_number":20,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"f5986573-600a-4faa-8db6-4b86b07d4414","block_type":"box","text":"such benchmarks; (v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the","page_number":20,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"08eb982e-e6c8-4bc8-8c39-eb63734038d8","block_type":"box","text":"Fund has complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":20,"box":{"x":70,"y":219,"width":837,"height":11}},{"id":"480cc823-44ae-44f2-bf30-8449286c541c","block_type":"box","text":"regarding valuation of the Fund’s investments. The Board has adopted a written charter for the Board’s Performance","page_number":20,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"7083a1c1-453b-417b-908c-8a2e6b0321da","block_type":"box","text":"Oversight Committee. During the fiscal year ended May 31, 2026, the Performance Oversight Committee met four","page_number":20,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"bfd7319d-962c-4a3a-88af-e5d51c520ddd","block_type":"box","text":"times.","page_number":20,"box":{"x":68,"y":264,"width":43,"height":9}},{"id":"13c1f6d5-5a71-42b9-9cd0-ca01ac915619","block_type":"box","text":"Securities Lending Committee.","page_number":20,"box":{"x":102,"y":287,"width":217,"height":11}},{"id":"183644ef-6dbe-482a-9160-0546868cef42","block_type":"box","text":"The Board has a Securities Lending Committee composed of Arthur P. Steinmetz","page_number":20,"box":{"x":325,"y":286,"width":575,"height":12}},{"id":"7f6fba4b-643a-4ee6-8ce9-d666a5a25497","block_type":"box","text":"(Chair), Cynthia L. Egan and W. Carl Kester, all of whom are Independent Trustees. The principal responsibilities of","page_number":20,"box":{"x":69,"y":302,"width":816,"height":11}},{"id":"2ee3baf2-9f61-4b24-8e0f-7c6fa9ad6e16","block_type":"box","text":"the Securities Lending Committee include, without limitation: (i) supporting, overseeing and organizing on behalf of","page_number":20,"box":{"x":68,"y":317,"width":820,"height":11}},{"id":"ed24c2a6-6f11-451c-8b1a-826de8f176ee","block_type":"box","text":"the Board the process for oversight of the Fund’s securities lending activities; and (ii) providing a recommendation to","page_number":20,"box":{"x":68,"y":332,"width":834,"height":11}},{"id":"10ba3976-9d63-4d7b-be55-e3715d4fb168","block_type":"box","text":"the Board regarding the annual approval of the Fund’s Securities Lending Guidelines and the Fund’s agreement with","page_number":20,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"ae9fb0f5-8a60-4f91-a9b4-9823e46a8f7c","block_type":"box","text":"the lending agent. The Board has adopted a written charter for the Board’s Securities Lending Committee. During the","page_number":20,"box":{"x":68,"y":362,"width":836,"height":11}},{"id":"063cdd91-3e51-4eb9-a112-e6b3dcdea5f6","block_type":"box","text":"fiscal year ended May 31, 2026, the Securities Lending Committee met two times.","page_number":20,"box":{"x":68,"y":377,"width":590,"height":12}},{"id":"527eefcf-9da3-4802-8a36-8e70ab2fecd4","block_type":"box","text":"Executive Committee.","page_number":20,"box":{"x":102,"y":400,"width":152,"height":9}},{"id":"0511b3cd-055b-4de8-95ac-8367b8ef05d9","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and W. Carl","page_number":20,"box":{"x":260,"y":400,"width":645,"height":11}},{"id":"700a7af3-770f-4306-b0a9-44b6882cfd0c","block_type":"box","text":"Kester, both of whom are Independent Trustees, and John M. Perlowski, who serves as an interested Trustee. The","page_number":20,"box":{"x":70,"y":415,"width":815,"height":11}},{"id":"3fd332a6-592a-4449-85c3-3f45b949790e","block_type":"box","text":"principal responsibilities of the Executive Committee include, without limitation: (i) acting on routine matters between","page_number":20,"box":{"x":70,"y":430,"width":832,"height":11}},{"id":"ab55881d-ebb0-4d0e-a6d6-38e963222b3f","block_type":"box","text":"meetings of the Board; (ii) acting on such matters as may require urgent action between meetings of the Board; and","page_number":20,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"0c5d8b05-78ed-4488-96f2-6edfa4345d42","block_type":"box","text":"(iii) exercising such other authority as may from time to time be delegated to the Executive Committee by the Board.","page_number":20,"box":{"x":69,"y":460,"width":826,"height":12}},{"id":"fe02aa1c-3460-4e79-9ac9-01d3d3b7995a","block_type":"box","text":"The Board has adopted a written charter for the Board’s Executive Committee. During the fiscal year ended","page_number":20,"box":{"x":68,"y":475,"width":764,"height":12}},{"id":"3911f849-3802-414e-9662-5bc8175c6a46","block_type":"box","text":"May 31, 2026, the Executive Committee did not meet.","page_number":20,"box":{"x":70,"y":491,"width":386,"height":11}},{"id":"6c28be54-2905-4088-a339-f0b160df2027","block_type":"box","text":"Private Assets Committee","page_number":20,"box":{"x":102,"y":513,"width":184,"height":9}},{"id":"074234ec-ae1a-4b94-a814-ea79721f6f4b","block_type":"box","text":". The Board has a Private Assets Committee composed of W. Carl Kester (Chair),","page_number":20,"box":{"x":287,"y":513,"width":573,"height":11}},{"id":"9486a4e9-c358-49b9-b853-3c3f90533017","block_type":"box","text":"Cynthia L. Egan and Arthur P. Steinmetz, all of whom are Independent Trustees. The principal responsibilities of the","page_number":20,"box":{"x":69,"y":528,"width":822,"height":12}},{"id":"5e75046a-d3a9-44ea-9159-2dd225524bb8","block_type":"box","text":"Private Assets Committee include, without limitation: (i) monitoring, on behalf of the Board, through reviews of","page_number":20,"box":{"x":69,"y":543,"width":785,"height":12}},{"id":"09075d21-9e4f-43a2-b0ac-cc82fe567500","block_type":"box","text":"periodic reports from BlackRock, certain categories or types of private assets held by the Fund that have been","page_number":20,"box":{"x":70,"y":559,"width":786,"height":11}},{"id":"a07d0321-9edc-46a9-800a-a9453d27b562","block_type":"box","text":"identified by the Committee (“subject private assets”); (ii) assisting the Board and its other Committees to oversee","page_number":20,"box":{"x":70,"y":574,"width":819,"height":11}},{"id":"ba3e4bca-bbee-42e6-aa84-a2616ca1366d","block_type":"box","text":"the actions of the Fund’s valuation designee and liquidity risk manager in respect of the valuation and liquidity,","page_number":20,"box":{"x":68,"y":589,"width":789,"height":11}},{"id":"465ff6bb-a736-465d-9895-e10cf640cc6f","block_type":"box","text":"respectively, of subject private assets held by the Fund; (iii) engaging with BlackRock on the oversight of subject","page_number":20,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"e3ef9908-f9b8-4a3d-bd4e-37b9db089063","block_type":"box","text":"private assets; (iv) reviewing and making recommendations to the Board and/or its Committees regarding the","page_number":20,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"dfcdf53a-a10d-49b9-9975-4fb8302a5475","block_type":"box","text":"Board’s oversight of subject private assets; and (v) addressing such other matters relating to subject private assets","page_number":20,"box":{"x":70,"y":634,"width":824,"height":12}},{"id":"9b71af18-0d5f-451a-9bfa-cc3d92385dce","block_type":"box","text":"held by the Fund as the Committee deems appropriate, including assisting the Board’s consideration of subject","page_number":20,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"a1ba483e-c8fb-4d94-b320-5e5291faa9ea","block_type":"box","text":"private assets in conjunction with the annual consideration of the Fund’s investment advisory agreement. The Board","page_number":20,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"e49832ad-807f-4239-96a1-d49fe94e011d","block_type":"box","text":"has adopted a written charter for the Board’s Private Assets Committee. As the Private Assets Committee was","page_number":20,"box":{"x":69,"y":680,"width":788,"height":11}},{"id":"b31bdede-9a81-44d3-92f0-15137c6c2b12","block_type":"box","text":"established in July 2026, during the fiscal year ended May 31, 2026, the Private Assets Committee did not meet.","page_number":20,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"43b1c93c-7bc7-4d99-a57f-f80c5aa0b37f","block_type":"box","text":"The Independent Trustees have adopted a statement of policy that describes the experiences, qualifications,","page_number":20,"box":{"x":101,"y":717,"width":775,"height":12}},{"id":"8b31c499-1de4-43ad-b6a6-c5fc011980ab","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":20,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"9a494769-bac0-4023-965b-9fb20c20edcd","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":20,"box":{"x":69,"y":748,"width":830,"height":11}},{"id":"d42d9dd3-0f2b-4a5e-b769-1f9a48aba91a","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy as well as the","page_number":20,"box":{"x":69,"y":763,"width":828,"height":11}},{"id":"4c522db1-074c-4097-96df-e3daab967fb7","block_type":"box","text":"standards set forth in the Trust’s Bylaws. Furthermore, in determining that a particular Trustee was and continues to","page_number":20,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"ce12897d-d121-4924-820e-6c179f72a7c5","block_type":"box","text":"be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":20,"box":{"x":69,"y":793,"width":805,"height":11}},{"id":"f6149cdc-b710-465c-a70b-7e819c98d655","block_type":"box","text":"controlling. The Board believes that, collectively, the Trustees have balanced and diverse experiences, skills,","page_number":20,"box":{"x":69,"y":808,"width":773,"height":11}},{"id":"2949bb0f-f5d2-4c10-b6f7-ea3acf1c41f5","block_type":"box","text":"attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the","page_number":20,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"ee230ddd-9fe2-441b-85a5-23adcf4f13f0","block_type":"box","text":"interests of shareholders. Among the attributes common to all Trustees is their ability to review critically, evaluate,","page_number":20,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"64055d54-f671-439c-ba79-b5e2131a6fb2","block_type":"box","text":"question and discuss information provided to them, to interact effectively with the Manager, sub-advisers, other","page_number":20,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"7e306198-7581-4e90-9a72-78d8583a60c9","block_type":"box","text":"service providers, counsel and independent auditors, and to exercise effective business judgment in the","page_number":20,"box":{"x":69,"y":869,"width":744,"height":11}},{"id":"4fb7245e-e171-4057-bca3-3192ff434133","block_type":"box","text":"performance of their duties as Trustees. Each Trustee’s ability to perform his or her duties effectively is evidenced by","page_number":20,"box":{"x":70,"y":884,"width":840,"height":11}},{"id":"87a94051-90a2-4cb6-806a-3cb212e75583","block_type":"box","text":"his or her educational background or professional training; business, consulting, public service or academic","page_number":20,"box":{"x":69,"y":899,"width":768,"height":11}},{"id":"f78e9c5c-fb1d-4b21-be97-46463045a3c2","block_type":"box","text":"I-10","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"49fa49cd-71d8-48e7-a8db-2023d3813a98","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3f7a79a-3ce3-4e1d-ac68-aba9d5a3ed75","block_type":"box","text":"positions; experience from service as a board member of the Trust or the other funds in the BlackRock Fund","page_number":21,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"53b73026-08c4-4f38-95bc-b00184a9f248","block_type":"box","text":"Complexes (and any predecessor funds), other investment funds, public companies, or not-for-profit entities or other","page_number":21,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"f84c1b8c-cf51-40d8-9fcf-6dd3b9bd7bdc","block_type":"box","text":"organizations; ongoing commitment and participation in Board and Committee meetings, as well as his or her","page_number":21,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"c56c78b9-796e-41b4-84a1-b10c05e732fd","block_type":"box","text":"leadership of standing and other committees throughout the years; or other relevant life experiences.","page_number":21,"box":{"x":70,"y":90,"width":719,"height":11}},{"id":"382ad1c1-1b21-4e74-8674-22e55dd65aaf","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Trustee that support the","page_number":21,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"77ece2b5-4430-42f2-9039-8a30da23e0d8","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":21,"box":{"x":69,"y":128,"width":378,"height":9}},{"id":"4aed29f8-b0e8-41d0-8e09-388e75d790a8","block_type":"box","text":"I-11","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"36cdb885-313d-4d8f-84bb-47e54e6ef08c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"529895ef-3c7c-409e-a13a-ff8ba89a282c","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":22,"box":{"x":101,"y":45,"width":751,"height":11}},{"id":"c46afe43-bbca-40b9-ba36-4bfe1cec6edf","block_type":"box","text":"support the conclusion that each board member should serve (or continue to serve) on the Board.","page_number":22,"box":{"x":69,"y":60,"width":701,"height":11}},{"id":"eb7c70c2-de78-46f7-99ac-9e539b1f654f","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"b2be72ad-d23f-4f91-875e-f662c095fd03","block_type":"box","text":"Independent Trustees","page_number":22,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"b214d5ed-680b-477e-b95e-16ce2f1e3555","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as","page_number":22,"box":{"x":70,"y":120,"width":814,"height":11}},{"id":"0103c04c-bca5-410c-945a-c43fcf1f6930","block_type":"box","text":"the Chairman of the U.S. Council of Economic Advisers of the President of the United","page_number":22,"box":{"x":264,"y":135,"width":606,"height":9}},{"id":"3ad5789a-4bff-498a-8186-86a268c3895e","block_type":"box","text":"States. Dr. Hubbard has served as the Dean of Columbia Business School, as a member","page_number":22,"box":{"x":265,"y":150,"width":635,"height":10}},{"id":"9386a1b4-9183-47fc-ad75-c8057c0b4845","block_type":"box","text":"of the Columbia Faculty and as a Visiting Professor at the John F. Kennedy School of","page_number":22,"box":{"x":265,"y":165,"width":602,"height":11}},{"id":"fe4921f7-3105-4394-8c80-48e13debce4b","block_type":"box","text":"Government at Harvard University, the Harvard Business School and the University of","page_number":22,"box":{"x":265,"y":180,"width":608,"height":11}},{"id":"8e8d40c6-bf86-4d07-b546-ce6384873876","block_type":"box","text":"Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":22,"box":{"x":265,"y":195,"width":613,"height":11}},{"id":"3e0eea94-c866-4e1d-a816-3ebea15753bb","block_type":"box","text":"adds a dimension of balance to the Fund’s governance and provides perspective on","page_number":22,"box":{"x":265,"y":210,"width":595,"height":12}},{"id":"a7367def-cd54-44ee-b767-9e94195946df","block_type":"box","text":"economic issues. Dr. Hubbard’s service on the boards of ADP and Metropolitan Life","page_number":22,"box":{"x":265,"y":225,"width":597,"height":11}},{"id":"c0aa46e2-3408-4772-abfe-b323f556b6f6","block_type":"box","text":"Insurance Company provides the Board with the benefit of his experience with the","page_number":22,"box":{"x":265,"y":241,"width":581,"height":11}},{"id":"6aee2a97-14a9-4d68-a6f7-e83120e799e0","block_type":"box","text":"management practices of other financial companies. Dr. Hubbard’s long-standing service","page_number":22,"box":{"x":265,"y":256,"width":632,"height":11}},{"id":"0be160d7-0821-4a5e-b9a3-9790796b05e1","block_type":"box","text":"on the boards of directors/trustees of the closed-end funds in the BlackRock Fixed","page_number":22,"box":{"x":265,"y":271,"width":594,"height":11}},{"id":"dbc3b209-52fc-470f-a72e-dbcce9233e48","block_type":"box","text":"Income Complex also provides him with a specific understanding of the Fund, its","page_number":22,"box":{"x":265,"y":286,"width":573,"height":11}},{"id":"e4bee93a-0400-45dd-873e-0653bdb06510","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Hubbard’s","page_number":22,"box":{"x":265,"y":301,"width":589,"height":11}},{"id":"8fcd8dd2-d29b-46cb-9bc6-fbe93b6d08f9","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Chair of the","page_number":22,"box":{"x":265,"y":316,"width":595,"height":11}},{"id":"dce12dbd-da51-4a2c-a2cb-d153e310ffb9","block_type":"box","text":"Board, Chair of the Executive Committee and a member of the Governance and","page_number":22,"box":{"x":265,"y":331,"width":562,"height":11}},{"id":"a25f6cec-3188-41a6-9319-c9fd8b24313f","block_type":"box","text":"Nominating Committee, the Compliance Committee and the Performance Oversight","page_number":22,"box":{"x":265,"y":346,"width":592,"height":12}},{"id":"021f3f09-8739-49be-ab70-f9744e45f994","block_type":"box","text":"Committee.","page_number":22,"box":{"x":265,"y":362,"width":80,"height":8}},{"id":"74572cf4-5800-417e-97c6-4ec015b5b3c0","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in","page_number":22,"box":{"x":68,"y":384,"width":786,"height":11}},{"id":"ae61639d-ece7-4455-b760-4c8cf6c2c0a5","block_type":"box","text":"finance, and his experience as the George Fisher Baker Jr. Professor of Business","page_number":22,"box":{"x":264,"y":399,"width":578,"height":12}},{"id":"d206f578-2c1e-4d67-b5d5-0a513c7e5d19","block_type":"box","text":"Administration at Harvard Business School and as Deputy Dean of Academic Affairs at","page_number":22,"box":{"x":264,"y":414,"width":618,"height":12}},{"id":"1440ec9d-0ac9-4602-9634-fed5763f7392","block_type":"box","text":"Harvard Business School from 2006 through 2010 adds to the Board a wealth of","page_number":22,"box":{"x":265,"y":429,"width":581,"height":12}},{"id":"384a4254-1dc8-4d63-8645-1fe1e4799909","block_type":"box","text":"expertise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":22,"box":{"x":265,"y":445,"width":613,"height":11}},{"id":"fb15a3d7-3893-4f3d-a316-8ca6059f2dcf","block_type":"box","text":"edited numerous books and research papers on both subject matters, including co-editing","page_number":22,"box":{"x":265,"y":460,"width":641,"height":11}},{"id":"41e4ba42-f1d8-47ba-a735-fb5ba0b4df89","block_type":"box","text":"a leading volume of finance case studies used worldwide. Dr. Kester’s long-standing","page_number":22,"box":{"x":265,"y":475,"width":599,"height":11}},{"id":"c51a8c55-6e91-44c5-81a6-4ab9c954b216","block_type":"box","text":"service on the boards of directors/trustees of the closed-end funds in the BlackRock","page_number":22,"box":{"x":265,"y":490,"width":605,"height":11}},{"id":"32998e9d-f1c4-45e3-bcce-70636b10be4c","block_type":"box","text":"Fixed-Income Complex also provides him with a specific understanding of the Fund, its","page_number":22,"box":{"x":265,"y":505,"width":613,"height":11}},{"id":"3e7f41a3-d34b-4a89-a580-b99132da7bcb","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Kester’s","page_number":22,"box":{"x":265,"y":520,"width":576,"height":12}},{"id":"d40a75b0-c9f6-46e4-bfbb-c6fd695d8fdf","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Vice Chair of the","page_number":22,"box":{"x":265,"y":535,"width":630,"height":12}},{"id":"929b8cd9-b861-439e-95a2-e8052b363a06","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee, Chair of the Private Assets","page_number":22,"box":{"x":265,"y":550,"width":621,"height":12}},{"id":"1da82905-bfd4-474f-9e93-a397fde53ee5","block_type":"box","text":"Committee and a member of the Executive Committee, the Compliance Committee, the","page_number":22,"box":{"x":265,"y":566,"width":620,"height":11}},{"id":"7e948c2e-ceab-4e7b-8a98-63061bce1893","block_type":"box","text":"Performance Oversight Committee and the Securities Lending Committee.","page_number":22,"box":{"x":265,"y":581,"width":526,"height":11}},{"id":"3a2561c1-cd07-45d3-b308-540ac9363491","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment","page_number":22,"box":{"x":69,"y":603,"width":775,"height":12}},{"id":"a8d5a836-ff8d-4e78-8f52-b9133345a7ee","block_type":"box","text":"companies and the retirement industry as a result of her many years of experience as","page_number":22,"box":{"x":264,"y":618,"width":613,"height":12}},{"id":"e7aa15a7-e8e6-48d9-b0fa-ecb78940f8f8","block_type":"box","text":"President, Retirement Plan Services, for T. Rowe Price Group, Inc. and her various senior","page_number":22,"box":{"x":265,"y":634,"width":633,"height":11}},{"id":"8543517f-cf4c-4732-88fb-340150f75719","block_type":"box","text":"operating officer positions at Fidelity Investments, including her service as Executive Vice","page_number":22,"box":{"x":265,"y":649,"width":636,"height":11}},{"id":"28e24e65-c7d3-41d3-b1eb-e00b97ef5b89","block_type":"box","text":"President of FMR Co., President of Fidelity Institutional Services Company and President","page_number":22,"box":{"x":265,"y":664,"width":629,"height":11}},{"id":"5f782e21-9959-4c2c-b463-bbc2e8a565ba","block_type":"box","text":"of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to the U.S.","page_number":22,"box":{"x":265,"y":679,"width":617,"height":11}},{"id":"d6a55674-62a8-4399-b3eb-cb6cbfe2a349","block_type":"box","text":"Department of Treasury as an expert in domestic retirement security. Ms. Egan began her","page_number":22,"box":{"x":265,"y":694,"width":642,"height":11}},{"id":"c195289c-d266-4a67-8603-18047db0ae7a","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal","page_number":22,"box":{"x":265,"y":709,"width":608,"height":11}},{"id":"2d740f10-097a-498e-a90c-542843d30a20","block_type":"box","text":"Reserve Bank of New York. Ms. Egan is also a director of UNUM Corporation, a publicly","page_number":22,"box":{"x":265,"y":724,"width":620,"height":12}},{"id":"71163b64-a653-4aef-9d83-38f07f540894","block_type":"box","text":"traded insurance company providing personal risk reinsurance, and a director and Chair of","page_number":22,"box":{"x":264,"y":739,"width":643,"height":12}},{"id":"f4a0db47-d2e5-4d89-a85a-340657f51c4f","block_type":"box","text":"the Board of The Hanover Group, a public property casualty insurance company. Ms. Egan","page_number":22,"box":{"x":264,"y":755,"width":640,"height":11}},{"id":"887e62df-d187-4a43-9bec-b80560131032","block_type":"box","text":"is also the lead independent director and non-executive Vice Chair of the Board of","page_number":22,"box":{"x":265,"y":770,"width":583,"height":11}},{"id":"a0c1da85-50b7-4632-b8d4-e4513a461c94","block_type":"box","text":"Huntsman Corporation, a publicly traded manufacturer and marketer of chemical products.","page_number":22,"box":{"x":265,"y":785,"width":643,"height":11}},{"id":"96fb595a-704b-4ec9-af0e-5ece3e90a52a","block_type":"box","text":"Ms. Egan’s independence from the Fund and the Manager enhances her service as Chair","page_number":22,"box":{"x":265,"y":800,"width":636,"height":11}},{"id":"6ea4fcdb-3077-4ddc-9614-09f903c0f467","block_type":"box","text":"of the Compliance Committee and a member of the Governance and Nominating","page_number":22,"box":{"x":265,"y":815,"width":571,"height":11}},{"id":"13f682d2-ea6b-46e2-a638-3bdb796e0ef7","block_type":"box","text":"Committee, the Performance Oversight Committee, the Securities Lending Committee and","page_number":22,"box":{"x":265,"y":830,"width":641,"height":11}},{"id":"19d51b7e-02a8-4391-9fee-74de2a4c17aa","block_type":"box","text":"the Private Assets Committee.","page_number":22,"box":{"x":264,"y":845,"width":215,"height":9}},{"id":"dfaa62f4-2aa7-43fb-9f60-b7ae9ff5f08e","block_type":"box","text":"I-12","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"43e35062-74c6-42c8-b371-a46755869e95","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc2a4f52-c462-4aa8-b74e-c120da346a4c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":23,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"2ecb1e09-9ade-4ece-97d9-848aa6a62c2d","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and","page_number":23,"box":{"x":70,"y":65,"width":796,"height":12}},{"id":"665735eb-41fe-41fe-aa7b-605b390a10e5","block_type":"box","text":"financial experience in his roles at various public and private companies. In particular,","page_number":23,"box":{"x":264,"y":81,"width":612,"height":11}},{"id":"8bf42c8b-a4a4-4989-9268-6d97aff25e4b","block_type":"box","text":"Mr. Flores’s service as Chief Financial Officer of Lattice Semiconductor Corporation, a","page_number":23,"box":{"x":265,"y":96,"width":611,"height":11}},{"id":"554e26ee-fec4-46d5-8920-17e44b6c7993","block_type":"box","text":"semiconductor company that designs, develops, and markets programmable logic","page_number":23,"box":{"x":265,"y":111,"width":582,"height":11}},{"id":"853b5d27-505d-4a1b-9b84-dbd2bdc0271c","block_type":"box","text":"products and related software, Chief Financial Officer of Intel Foundry, a semiconductor","page_number":23,"box":{"x":265,"y":126,"width":622,"height":11}},{"id":"7401cb9a-c7d0-4188-b11f-1e790d077749","block_type":"box","text":"manufacturing unit of Intel Corporation, Chief Financial Officer and Corporate Controller of","page_number":23,"box":{"x":265,"y":141,"width":639,"height":11}},{"id":"9008143e-df0f-49b7-8628-c0f31a798797","block_type":"box","text":"Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":23,"box":{"x":264,"y":156,"width":622,"height":11}},{"id":"ecf8d43c-ac91-4ff3-a23d-e5684b0320f2","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory","page_number":23,"box":{"x":265,"y":171,"width":631,"height":11}},{"id":"60e02836-9832-476b-8956-7537e0589dae","block_type":"box","text":"and solid state drives, and his long experience in the technology industry allow him to","page_number":23,"box":{"x":265,"y":187,"width":610,"height":11}},{"id":"1ed70358-0a64-487d-a8b3-544df179594f","block_type":"box","text":"provide insight into financial, business and technology trends. Mr. Flores’s knowledge of","page_number":23,"box":{"x":265,"y":201,"width":629,"height":12}},{"id":"0ee19146-bdad-49b7-a314-40d2652e01ea","block_type":"box","text":"financial and accounting matters qualifies him to serve as Chair of the Audit Committee.","page_number":23,"box":{"x":264,"y":217,"width":630,"height":11}},{"id":"1c152796-1762-4ad1-bd1c-6f15fb9f2b6f","block_type":"box","text":"Mr. Flores’s independence from the Fund and the Manager enhances his service as a","page_number":23,"box":{"x":265,"y":232,"width":610,"height":11}},{"id":"0f07c58a-0a10-4f77-b90d-19caff70e87f","block_type":"box","text":"member of the Performance Oversight Committee. Mr. Flores has been determined by the","page_number":23,"box":{"x":265,"y":247,"width":639,"height":11}},{"id":"f2cf63e5-47c3-4201-84c0-c5b51b69a3d6","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":23,"box":{"x":264,"y":262,"width":641,"height":11}},{"id":"56ff3d99-a88b-41fb-bffc-36a9579c0f6c","block_type":"box","text":"applicable Commission rules.","page_number":23,"box":{"x":265,"y":277,"width":208,"height":11}},{"id":"aa1090ab-db40-49cb-9a0c-458c694409bc","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. Harris’s leadership and governance experience gained","page_number":23,"box":{"x":69,"y":300,"width":832,"height":11}},{"id":"2ecca682-cad3-4ef1-bea7-3889ba3bd09e","block_type":"box","text":"during her extensive military career, including as a three-star Lieutenant General of the","page_number":23,"box":{"x":265,"y":315,"width":617,"height":11}},{"id":"2f404a4d-af46-403b-a894-b523ceb7d553","block_type":"box","text":"United States Air Force. In her most recent role, Ms. Harris reported to the Secretary and","page_number":23,"box":{"x":265,"y":330,"width":637,"height":11}},{"id":"267522a7-259c-4740-8e56-202dd31f6254","block_type":"box","text":"Chief of Staff of the Air Force on matters concerning Air Force effectiveness, efficiency","page_number":23,"box":{"x":265,"y":345,"width":617,"height":11}},{"id":"b182002d-e9b2-4476-8e46-30b221b8781c","block_type":"box","text":"and the military discipline of active duty, Air Force Reserve and Air National Guard forces.","page_number":23,"box":{"x":265,"y":360,"width":635,"height":11}},{"id":"5c2e8480-227d-476e-9884-73c12e9b76be","block_type":"box","text":"Ms. Harris’s experience on governance matters includes oversight of inspection policy and","page_number":23,"box":{"x":265,"y":375,"width":643,"height":12}},{"id":"7c4692eb-979e-4118-9ad8-e11009b018b4","block_type":"box","text":"the inspection and evaluation system for all Air Force nuclear and conventional forces;","page_number":23,"box":{"x":264,"y":390,"width":614,"height":12}},{"id":"91b4d978-ca66-4d8e-9563-acb479610e4f","block_type":"box","text":"oversight of Air Force counterintelligence operations and service on the Air Force","page_number":23,"box":{"x":265,"y":406,"width":573,"height":11}},{"id":"5f2dfded-dc31-4392-b31c-513648976500","block_type":"box","text":"Intelligence Oversight Panel; investigation of fraud, waste and abuse; and oversight of","page_number":23,"box":{"x":265,"y":421,"width":612,"height":11}},{"id":"b5543aaf-2071-42dd-8284-18dfcf3b9b96","block_type":"box","text":"criminal investigations and complaints resolution programs. Ms. Harris is also a director","page_number":23,"box":{"x":264,"y":436,"width":630,"height":11}},{"id":"b915c65c-5873-4d64-befc-a133a8f9c653","block_type":"box","text":"of The Boeing Company. Ms. Harris’s independence from the Fund and the Manager","page_number":23,"box":{"x":265,"y":451,"width":599,"height":11}},{"id":"52ee4c6a-07ff-40a7-892f-6012924e000a","block_type":"box","text":"enhances her service as a member of the Compliance Committee and the Performance","page_number":23,"box":{"x":265,"y":466,"width":623,"height":11}},{"id":"44cf30d3-f690-47df-a2c5-600a4969713f","block_type":"box","text":"Oversight Committee.","page_number":23,"box":{"x":265,"y":481,"width":151,"height":11}},{"id":"e3eb56b9-a8a6-4bed-a80a-4f174bbe8138","block_type":"box","text":"J. Phillip Holloman The Board benefits from J. Phillip Holloman’s many years of business and leadership","page_number":23,"box":{"x":69,"y":504,"width":800,"height":11}},{"id":"fee08e38-67c0-4510-ab90-a034d0157097","block_type":"box","text":"experience as an executive, director and advisory board member of various public and","page_number":23,"box":{"x":265,"y":519,"width":612,"height":11}},{"id":"1edcd83e-428c-4dd6-bbf1-8ea9153a6639","block_type":"box","text":"private companies. In particular, Mr. Holloman’s service as Board Chairman, Vestis","page_number":23,"box":{"x":265,"y":534,"width":593,"height":11}},{"id":"cfcdc6bb-e93f-4475-bca9-a2899742e14f","block_type":"box","text":"Corporation since 2023; Interim Executive Chairman, President and Chief Executive","page_number":23,"box":{"x":265,"y":549,"width":593,"height":11}},{"id":"b682d163-f695-471a-a7a6-89b7d898bac8","block_type":"box","text":"Officer of Vestis Corporation from April 2025 to July 2025; President and Chief Operating","page_number":23,"box":{"x":265,"y":564,"width":635,"height":12}},{"id":"f39ba9c6-3051-4f32-a8e1-d6979de7610e","block_type":"box","text":"Officer of Cintas Corporation allows him to provide insight into business trends and","page_number":23,"box":{"x":265,"y":579,"width":593,"height":12}},{"id":"b7b6582d-ba5e-4c85-a63a-af31beb8e62e","block_type":"box","text":"conditions. Mr. Holloman’s knowledge of financial and accounting matters qualifies him to","page_number":23,"box":{"x":264,"y":595,"width":642,"height":11}},{"id":"928db693-e452-4089-8ec5-3e6cd0710e0c","block_type":"box","text":"serve as a member of the Audit Committee. Mr. Holloman’s independence from the Fund","page_number":23,"box":{"x":265,"y":610,"width":633,"height":11}},{"id":"8db8fc66-386c-4cd2-9b7f-6583558ec3e6","block_type":"box","text":"and the Manager enhances his service as a member of the Governance and Nominating","page_number":23,"box":{"x":265,"y":625,"width":628,"height":11}},{"id":"4598f371-1b5d-432d-8a0d-55b3f3c75762","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":23,"box":{"x":265,"y":640,"width":389,"height":11}},{"id":"91bde9f8-9b17-4b21-a859-3aa9f6b341f6","block_type":"box","text":"Francis C. Mahoney The Board benefits from Francis C. Mahoney’s 39 years of financial expertise as a former","page_number":23,"box":{"x":70,"y":663,"width":835,"height":11}},{"id":"41a09b31-4398-474b-ac1a-fe8326797a85","block_type":"box","text":"Vice Chair at Ernst & Young LLP (“EY”). Mr. Mahoney’s experience includes financial","page_number":23,"box":{"x":264,"y":678,"width":598,"height":11}},{"id":"6fb12daa-77f9-448b-9493-17dbb96e41a1","block_type":"box","text":"accounting and reporting, business strategy, P&L management, human capital, and","page_number":23,"box":{"x":265,"y":693,"width":593,"height":11}},{"id":"a1439613-68bf-4261-9825-e6a9671a1a77","block_type":"box","text":"governance. Mr. Mahoney’s leadership experience at EY included large-scale","page_number":23,"box":{"x":264,"y":708,"width":545,"height":11}},{"id":"38ec5508-7ed1-47f5-8c3f-48092486b267","block_type":"box","text":"transformations, development of high performing teams and serving as a valued advisor","page_number":23,"box":{"x":264,"y":723,"width":631,"height":11}},{"id":"52212899-1806-4a8a-8d27-24f5f29f3db3","block_type":"box","text":"to the board. Mr. Mahoney’s independence from the Fund and the Manager enhances his","page_number":23,"box":{"x":264,"y":738,"width":636,"height":11}},{"id":"0b876fe1-d914-4b49-96f4-15bf1cfe521c","block_type":"box","text":"service as a member of the Audit Committee and the Compliance Committee.","page_number":23,"box":{"x":265,"y":753,"width":552,"height":11}},{"id":"e0f52c52-8ef9-4341-980f-9258d9f549be","block_type":"box","text":"Mr. Mahoney has been determined by the Audit Committee to be an audit committee","page_number":23,"box":{"x":265,"y":769,"width":603,"height":11}},{"id":"41b79c89-894e-41ab-b1bf-3b773041d4b5","block_type":"box","text":"financial expert, as such term is defined in the applicable Commission rules.","page_number":23,"box":{"x":264,"y":783,"width":548,"height":11}},{"id":"14a681d0-9a57-4d6e-9d91-0c421ac13a45","block_type":"box","text":"I-13","page_number":23,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"506af009-9e57-4087-8628-2da9a015789c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ede91292-d940-471d-b98a-c6c288979049","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":24,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"212aa68e-23fd-4dff-ac26-6d5f3e4451b3","block_type":"box","text":"Arthur P. Steinmetz The Board benefits from Arthur P. Steinmetz’s many years of business and leadership","page_number":24,"box":{"x":68,"y":65,"width":808,"height":12}},{"id":"a0a90a8c-6b96-459c-9683-7cdc6cb5073b","block_type":"box","text":"experience as an executive, chairman and director of various companies in the financial","page_number":24,"box":{"x":265,"y":81,"width":624,"height":11}},{"id":"9183e990-028b-4938-916a-a9dce6bbd7b0","block_type":"box","text":"industry. 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Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.","page_number":26,"box":{"x":93,"y":880,"width":762,"height":9}},{"id":"db962cb3-9699-4e55-97b0-70f70bd8b302","block_type":"box","text":"I-16","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d6d83e67-8cf5-4bda-84f9-84a31230400b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2114d0a7-86dc-40d1-a4c3-6c4efe1b0abc","block_type":"box","text":"Certain biographical and other information relating to the officers of the Fund who are not Trustees is set forth","page_number":27,"box":{"x":102,"y":45,"width":786,"height":11}},{"id":"70bdcadb-a166-4de8-a0f1-8f1f5fa1ae3c","block_type":"box","text":"below, including their address and year of birth, principal occupations for at least the last five years and length of","page_number":27,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"6a0554ca-5083-432a-9538-a6236a65041b","block_type":"box","text":"time served.","page_number":27,"box":{"x":68,"y":75,"width":89,"height":9}},{"id":"bb8378a7-1933-4423-8187-86fe34532ace","block_type":"box","text":"Name","page_number":27,"box":{"x":160,"y":103,"width":32,"height":7}},{"id":"de9e2c27-010b-4322-a205-85d80f1b0957","block_type":"box","text":"and Year of Birth","page_number":27,"box":{"x":122,"y":113,"width":97,"height":7}},{"id":"b8c6a0fb-8794-4d27-a0a4-4cb0f9f398e4","block_type":"box","text":"1,2","page_number":27,"box":{"x":220,"y":113,"width":10,"height":5}},{"id":"2ee5e9bd-49de-4eb3-a13d-7c12c58ee2fd","block_type":"box","text":"Position(s) Held","page_number":27,"box":{"x":335,"y":103,"width":93,"height":9}},{"id":"d5faec1c-2a48-4c02-a6fe-3e5c0700e3c6","block_type":"box","text":"(Length of Service)","page_number":27,"box":{"x":326,"y":113,"width":110,"height":9}},{"id":"5deaad03-dac8-4675-adb7-ee01168c1dc5","block_type":"box","text":"Principal Occupation(s)","page_number":27,"box":{"x":626,"y":103,"width":136,"height":9}},{"id":"46db3321-73df-418b-9eb4-936403608c61","block_type":"box","text":"During Past Five Years","page_number":27,"box":{"x":629,"y":113,"width":131,"height":9}},{"id":"4d0c46ae-18ee-40fa-9781-efb8011e12f5","block_type":"box","text":"Officers Who Are Not Trustees","page_number":27,"box":{"x":69,"y":127,"width":194,"height":9}},{"id":"2b5480de-b269-4fe0-aed8-ce2e45f09a3c","block_type":"box","text":"Jennifer McGovern","page_number":27,"box":{"x":69,"y":145,"width":110,"height":8}},{"id":"54da964c-1dc4-41c2-9bce-19ec5c44fd90","block_type":"box","text":"1977","page_number":27,"box":{"x":69,"y":161,"width":32,"height":8}},{"id":"9534121d-827f-4dbd-8db5-a47d2c6bf68c","block_type":"box","text":"Vice President","page_number":27,"box":{"x":293,"y":145,"width":87,"height":8}},{"id":"93aac308-2ea8-4fd3-9979-b9f92a6bde00","block_type":"box","text":"(Since 2014)","page_number":27,"box":{"x":294,"y":157,"width":78,"height":10}},{"id":"9452f979-9888-46be-8b8f-b6531a8c932b","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2016.","page_number":27,"box":{"x":480,"y":145,"width":297,"height":10}},{"id":"8d4ddc5a-0a14-44d9-9116-3e343519512c","block_type":"box","text":"Trent Walker","page_number":27,"box":{"x":68,"y":179,"width":75,"height":8}},{"id":"9d0abfc1-2642-41d9-8319-c47aeba90b1a","block_type":"box","text":"1974","page_number":27,"box":{"x":69,"y":194,"width":33,"height":8}},{"id":"5e824803-c9eb-4926-aa52-16f0a812769e","block_type":"box","text":"Chief","page_number":27,"box":{"x":294,"y":178,"width":31,"height":9}},{"id":"96b2b2fc-592e-40a5-a385-04db8963ec84","block_type":"box","text":"Financial","page_number":27,"box":{"x":294,"y":191,"width":51,"height":8}},{"id":"64ba875e-cb99-42e7-b2ab-5d04c98ab443","block_type":"box","text":"Officer","page_number":27,"box":{"x":294,"y":202,"width":40,"height":8}},{"id":"187a3171-6d08-4537-9d21-fd3085f89857","block_type":"box","text":"(Since 2021)","page_number":27,"box":{"x":294,"y":214,"width":78,"height":10}},{"id":"a1eb5a4f-b6dc-488c-b5a0-13a8c1aea041","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":27,"box":{"x":480,"y":178,"width":297,"height":11}},{"id":"d74a3659-f9b7-4fc6-88d5-2cda6d6944aa","block_type":"box","text":"Jay M. 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Amounts shown may include shares as to which a Trustee has indirect","page_number":27,"box":{"x":69,"y":530,"width":774,"height":11}},{"id":"4c383171-61f2-43db-8361-250559b077e3","block_type":"box","text":"beneficial ownership, such as through participation in certain family accounts, 529 college savings plan interests, or","page_number":27,"box":{"x":69,"y":545,"width":833,"height":12}},{"id":"c5f89e5b-5c81-4fb3-86c8-c9c4e3ac74df","block_type":"box","text":"similar arrangements where the Trustee has beneficial economic interest but not a direct ownership interest.","page_number":27,"box":{"x":69,"y":561,"width":776,"height":11}},{"id":"7c365aab-cec1-46f3-a5a4-0cdc946c24fe","block_type":"box","text":"Name of Trustee","page_number":27,"box":{"x":69,"y":599,"width":95,"height":7}},{"id":"12393472-0792-4cbd-91d2-3362433f58fa","block_type":"box","text":"Dollar Range","page_number":27,"box":{"x":666,"y":589,"width":74,"height":9}},{"id":"b19a0bb6-d5c2-47f5-bca3-6ec9be9e64e2","block_type":"box","text":"in the Fund","page_number":27,"box":{"x":671,"y":599,"width":64,"height":7}},{"id":"6c81cb05-b75d-4abb-9824-1ecc1dc6d355","block_type":"box","text":"Aggregate Dollar Range","page_number":27,"box":{"x":770,"y":589,"width":139,"height":9}},{"id":"87c3e5a6-73cd-4b64-b0a4-62bd07606c0f","block_type":"box","text":"in Supervised Funds*","page_number":27,"box":{"x":778,"y":599,"width":123,"height":9}},{"id":"da970651-48a4-42f1-a303-56168d94a9f6","block_type":"box","text":"Independent Trustees:","page_number":27,"box":{"x":70,"y":617,"width":159,"height":11}},{"id":"dc6ace30-de65-4fca-9986-5fe88b2fee33","block_type":"box","text":"Cynthia L. 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Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":79,"y":662,"width":738,"height":11}},{"id":"4a68cb08-48fe-41e7-b673-e2b029ec1bdd","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":661,"width":72,"height":11}},{"id":"c24aadf1-4e8c-4794-9dc7-5997d23f22d1","block_type":"box","text":"J. Phillip Holloman","page_number":27,"box":{"x":78,"y":677,"width":130,"height":11}},{"id":"05947e44-3696-4314-b62d-d11fc16ed959","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":217,"y":677,"width":600,"height":9}},{"id":"5a10e9a7-cc2a-45eb-9306-5c2b187848b1","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":676,"width":72,"height":12}},{"id":"f23859e7-f816-4a2b-8c6b-96ee1e9d5786","block_type":"box","text":"R. Glenn Hubbard","page_number":27,"box":{"x":79,"y":692,"width":124,"height":9}},{"id":"2de05212-0bab-4978-9c36-76316e4ae5ab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":209,"y":692,"width":608,"height":9}},{"id":"c4ce1d20-55c5-4972-91c6-956b8b2214a1","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":692,"width":72,"height":11}},{"id":"e24c282d-47ce-4e7e-9387-2de0fb64528b","block_type":"box","text":"W. Carl Kester","page_number":27,"box":{"x":78,"y":707,"width":102,"height":9}},{"id":"c6443a2b-1eab-4120-96ac-d3425814f03b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":185,"y":707,"width":632,"height":9}},{"id":"38794683-3c7e-4962-97a6-223e3c4de04c","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":707,"width":72,"height":11}},{"id":"904b80ea-6c8c-410b-ab02-a73628594597","block_type":"box","text":"Francis C. Mahoney**","page_number":27,"box":{"x":79,"y":723,"width":157,"height":11}},{"id":"50999d8a-1eed-4a6d-866b-ccb5a3dec23d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":27,"box":{"x":242,"y":723,"width":479,"height":8}},{"id":"61b76bef-423b-4a59-8ffd-0c71c862fe27","block_type":"box","text":"None","page_number":27,"box":{"x":822,"y":723,"width":36,"height":8}},{"id":"f380fcc6-e3ba-4dbf-ab31-148946ef3e41","block_type":"box","text":"Arthur P. Steinmetz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":78,"y":738,"width":739,"height":9}},{"id":"6df82aeb-78ec-4357-91bc-c2ee1e1e673e","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":737,"width":72,"height":11}},{"id":"f26e2409-0398-4eaa-821f-fc4f7422cfbc","block_type":"box","text":"Interested Trustees:","page_number":27,"box":{"x":70,"y":753,"width":143,"height":9}},{"id":"4610f2c4-9d6d-47dd-876a-6eb7773d9b06","block_type":"box","text":"Robert Fairbairn","page_number":27,"box":{"x":79,"y":768,"width":113,"height":9}},{"id":"531cd013-9b34-4bc8-9120-e29bc737a338","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":201,"y":768,"width":616,"height":9}},{"id":"b89eb2d1-ec3b-4a31-9bf2-b65b34034d7b","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":767,"width":72,"height":11}},{"id":"12a737ac-9f9f-452b-ac80-c362d5c9dbda","block_type":"box","text":"John M. Perlowski","page_number":27,"box":{"x":78,"y":783,"width":127,"height":9}},{"id":"f38d02f2-b8fe-40be-af52-3a813cab197b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":27,"box":{"x":209,"y":783,"width":608,"height":9}},{"id":"c10207ee-8a23-41ac-9d08-df0cd24f43e3","block_type":"box","text":"$100,000","page_number":27,"box":{"x":822,"y":782,"width":72,"height":11}},{"id":"3f26eb5f-39fb-4841-8ac0-8926e2e60d8d","block_type":"box","text":"* Includes share equivalents owned under the deferred compensation plan in the Supervised Funds by certain Independent Trustees who have","page_number":27,"box":{"x":70,"y":807,"width":815,"height":9}},{"id":"21588266-8ac7-4467-b204-331fcbfbf781","block_type":"box","text":"participated in the deferred compensation plan of the Supervised Funds.","page_number":27,"box":{"x":69,"y":817,"width":414,"height":9}},{"id":"7c24ec96-8cef-4632-b4af-39bd3af0ea30","block_type":"box","text":"** Appointed as a Trustee of the Trust effective September 8, 2026.","page_number":27,"box":{"x":70,"y":830,"width":393,"height":9}},{"id":"931cbe39-6536-4a7b-a397-0723228cadad","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":27,"box":{"x":101,"y":851,"width":767,"height":11}},{"id":"39b80e70-bcb3-4893-8d16-844636786d7f","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of","page_number":27,"box":{"x":69,"y":866,"width":670,"height":11}},{"id":"ed66ecd1-1ea3-4fd6-a6fe-5e355ba44d3f","block_type":"box","text":"December 31, 2025(and, with respect to Mr. Mahoney, as of September 8, 2026), none of the Independent Trustees","page_number":27,"box":{"x":70,"y":881,"width":834,"height":11}},{"id":"fa8972c9-1d1d-4a2b-b535-c196c1c05857","block_type":"box","text":"of the Trust or their immediate family members owned beneficially or of record any securities of the Fund’s","page_number":27,"box":{"x":69,"y":896,"width":760,"height":11}},{"id":"3cdb9c08-7ff7-4e58-91cc-129c108a211f","block_type":"box","text":"I-17","page_number":27,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"68ccd93a-fc35-4999-a47d-dd1c7ea34a60","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38b0c598-b0e3-43c6-a434-b5b79c85f42e","block_type":"box","text":"investment adviser, principal underwriter, or any person directly or indirectly controlling, controlled by, or under","page_number":28,"box":{"x":70,"y":45,"width":784,"height":11}},{"id":"4a0a6e40-e435-4a47-8bf3-f7256b07813c","block_type":"box","text":"common control with such entities.","page_number":28,"box":{"x":69,"y":60,"width":248,"height":9}},{"id":"8c765ab8-818c-4f67-901a-1ec86455621a","block_type":"box","text":"Compensation of Trustees","page_number":28,"box":{"x":69,"y":90,"width":190,"height":11}},{"id":"c0189cb6-b96f-4539-8fca-e098412458c4","block_type":"box","text":"Each Independent Trustee is paid an annual retainer of $370,000 per year for his or her services as a Board","page_number":28,"box":{"x":102,"y":112,"width":775,"height":12}},{"id":"a2b604de-ad52-4f38-9dfb-91f71e4d88ee","block_type":"box","text":"member of the BlackRock-advised Funds, including the Fund, together with out-of-pocket expenses in accordance with","page_number":28,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"f9e18419-abab-4a24-8940-33bb33e210f4","block_type":"box","text":"a Board policy on travel and other business expenses relating to attendance at meetings. In addition, the Chair of the","page_number":28,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"1061871c-fce3-4cd8-b669-ee34b3bc6e4e","block_type":"box","text":"Board and the Vice Chair of the Board are paid an additional annual retainer of $140,000 and $84,000, respectively.","page_number":28,"box":{"x":70,"y":157,"width":835,"height":12}},{"id":"c8faa6f1-eea2-475c-80d3-5b6cc146cb7e","block_type":"box","text":"The Chairs of the Audit Committee, Private Assets Committee, Performance Oversight Committee, Compliance","page_number":28,"box":{"x":68,"y":173,"width":787,"height":11}},{"id":"caffb8ad-fb2e-41cb-a190-5b8862c04fdb","block_type":"box","text":"Committee, Governance and Nominating Committee, and Securities Lending Committee are paid an additional annual","page_number":28,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"20db03cc-b691-44a6-b8d0-cc3744c7553c","block_type":"box","text":"retainer of $55,000, $55,000, $42,500, $50,000, $42,500 and $5,000, respectively, in addition to the retainers","page_number":28,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"6f1729a3-0403-4a52-ae64-e82194bff536","block_type":"box","text":"that they each receive as a member of such committee. Each member (including the Chair) of the Audit Committee,","page_number":28,"box":{"x":68,"y":218,"width":822,"height":12}},{"id":"4d624813-44b3-4820-bed6-bc32c4c43440","block_type":"box","text":"Private Assets Committee, Compliance Committee, Governance and Nominating Committee, and Securities Lending","page_number":28,"box":{"x":69,"y":234,"width":825,"height":11}},{"id":"0fa2235c-0c9a-47de-9609-003cb4791298","block_type":"box","text":"Committee are paid an additional annual retainer of $30,000, $30,000, $25,000, $25,000 and $15,000,","page_number":28,"box":{"x":69,"y":248,"width":760,"height":12}},{"id":"1fa0912d-2d36-4417-ac3c-1accf1e594b5","block_type":"box","text":"respectively, for his or her service on such committee. An Independent Trustee may receive additional compensation","page_number":28,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"70325cd0-a7c5-4535-82e6-db85b15bbea3","block_type":"box","text":"for his or her service as a member or Chair, as applicable, of one or more ad hoc committees of the Board. The Fund","page_number":28,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"faf689cf-a527-4da6-a764-7be176be7a89","block_type":"box","text":"will pay a pro rata portion quarterly (based on relative net assets) of the foregoing Trustee fees paid by the funds in","page_number":28,"box":{"x":68,"y":294,"width":825,"height":11}},{"id":"4fe4e2c0-f681-41b4-b6f6-6fa8a4f8ba67","block_type":"box","text":"the BlackRock Fixed-Income Complex.","page_number":28,"box":{"x":68,"y":309,"width":268,"height":11}},{"id":"ff5d3bed-5c44-4353-9844-84655ce0f5a6","block_type":"box","text":"The Independent Trustees have agreed that a maximum of 50% of each Independent Trustee’s total","page_number":28,"box":{"x":101,"y":332,"width":711,"height":11}},{"id":"60812b6d-bb68-42b6-b205-67188e604a00","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the BlackRock","page_number":28,"box":{"x":69,"y":347,"width":801,"height":11}},{"id":"e7d5ad3f-c19a-4b21-9a3d-5c170718f86f","block_type":"box","text":"Fixed-Income Complex’s deferred compensation plan. Under the deferred compensation plan, deferred amounts earn","page_number":28,"box":{"x":70,"y":362,"width":833,"height":11}},{"id":"c8333f73-6e9a-4ef7-a679-87f381b34539","block_type":"box","text":"a return for the Independent Trustees as though equivalent dollar amounts had been invested in shares of certain","page_number":28,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"4f5e9768-8c68-449b-b20e-7ec9e8bcf861","block_type":"box","text":"funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has approximately the","page_number":28,"box":{"x":68,"y":392,"width":802,"height":12}},{"id":"46d8b169-ded8-41f2-95b7-ba9f35d57c3c","block_type":"box","text":"same economic effect for the Independent Trustees as if they had invested the deferred amounts in such funds in","page_number":28,"box":{"x":69,"y":407,"width":814,"height":12}},{"id":"c3c20646-b1c9-4296-8853-65a025260f4a","block_type":"box","text":"the BlackRock Fixed-Income Complex. The deferred compensation plan is not funded and obligations thereunder","page_number":28,"box":{"x":68,"y":423,"width":800,"height":11}},{"id":"1405d5d4-62b8-4ed9-9d51-bca309e8673f","block_type":"box","text":"represent general unsecured claims against the general assets of a fund and are recorded as a liability for","page_number":28,"box":{"x":69,"y":438,"width":760,"height":11}},{"id":"8716b9d6-9062-4159-a5b6-8efa94dd64e9","block_type":"box","text":"accounting purposes.","page_number":28,"box":{"x":69,"y":453,"width":151,"height":11}},{"id":"c95c513a-543f-47af-bc01-47d41b89d0ef","block_type":"box","text":"The following table sets forth the compensation paid to the Trustees by the Trust, on behalf of the Fund, for the","page_number":28,"box":{"x":101,"y":475,"width":796,"height":12}},{"id":"aa1edd2e-406f-46ba-8745-5818cf86b2fa","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation, including deferred compensation amounts, paid to","page_number":28,"box":{"x":68,"y":491,"width":837,"height":11}},{"id":"cb13fe5a-9a54-4ac2-9a23-1d8e4c3acc89","block_type":"box","text":"them by all BlackRock-advised Funds for the calendar year ended December 31, 2025.","page_number":28,"box":{"x":68,"y":506,"width":618,"height":11}},{"id":"b29279a2-b848-49f3-89f7-b84a9a82e52d","block_type":"box","text":"Name","page_number":28,"box":{"x":69,"y":574,"width":32,"height":7}},{"id":"b9c3db39-5b66-44f5-9442-5790ee1062c2","block_type":"box","text":"1","page_number":28,"box":{"x":102,"y":574,"width":4,"height":4}},{"id":"44ce099a-9d52-4870-9307-52c94d8d39f1","block_type":"box","text":"Aggregate","page_number":28,"box":{"x":607,"y":554,"width":61,"height":9}},{"id":"1740c89e-1c52-4e38-b079-47493f993b46","block_type":"box","text":"Compensation","page_number":28,"box":{"x":596,"y":564,"width":83,"height":9}},{"id":"55aa12f3-e78f-40e6-8532-b87edbe342fc","block_type":"box","text":"from the Fund","page_number":28,"box":{"x":597,"y":574,"width":80,"height":7}},{"id":"389ae8ea-37cd-41e7-a412-40a3798da027","block_type":"box","text":"Estimated","page_number":28,"box":{"x":712,"y":534,"width":58,"height":7}},{"id":"7bf01f97-280c-44ae-9c14-b5d96b887575","block_type":"box","text":"Annual","page_number":28,"box":{"x":721,"y":544,"width":39,"height":7}},{"id":"6924668e-91d0-4f2a-807e-ae556abf6b99","block_type":"box","text":"Benefits","page_number":28,"box":{"x":718,"y":554,"width":47,"height":7}},{"id":"450746ad-947b-496d-96bc-4462f9c58371","block_type":"box","text":"upon","page_number":28,"box":{"x":728,"y":566,"width":27,"height":7}},{"id":"c37bd134-ccb0-418a-8d01-fc51c68111ea","block_type":"box","text":"Retirement","page_number":28,"box":{"x":709,"y":574,"width":65,"height":7}},{"id":"4db17ce3-b3e9-4c35-a9ad-1dd78f483553","block_type":"box","text":"Aggregate","page_number":28,"box":{"x":826,"y":534,"width":61,"height":9}},{"id":"8c0469ba-f4e9-440f-914d-52fb83376b31","block_type":"box","text":"Compensation","page_number":28,"box":{"x":815,"y":544,"width":82,"height":9}},{"id":"10073474-60c1-4a69-a71d-9a763d7d0cbf","block_type":"box","text":"from the Fund and","page_number":28,"box":{"x":803,"y":554,"width":106,"height":7}},{"id":"792960af-7daa-4c14-885d-5a7217b4b06b","block_type":"box","text":"Other BlackRock","page_number":28,"box":{"x":806,"y":564,"width":102,"height":7}},{"id":"1bc914be-e68d-4788-baea-986d90678acd","block_type":"box","text":"Advised Funds","page_number":28,"box":{"x":809,"y":574,"width":84,"height":7}},{"id":"d46afeff-ce6a-4dbb-ad7c-66cdf5bea485","block_type":"box","text":"2,3","page_number":28,"box":{"x":894,"y":574,"width":9,"height":5}},{"id":"e2e60c8d-d88c-4c3f-9c0c-8013dc1eb86b","block_type":"box","text":"Independent Trustees:","page_number":28,"box":{"x":70,"y":592,"width":159,"height":11}},{"id":"4583e998-678f-4178-adee-0383928a4ccc","block_type":"box","text":"Cynthia L. Egan","page_number":28,"box":{"x":79,"y":607,"width":108,"height":11}},{"id":"fc5bb3fe-8e6c-4db0-89b5-74dc53dae5b8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,243","page_number":28,"box":{"x":196,"y":606,"width":468,"height":12}},{"id":"e1e2a6e7-144b-4147-b412-9ff8502bb884","block_type":"box","text":"None $580,000","page_number":28,"box":{"x":724,"y":606,"width":168,"height":12}},{"id":"e6862ad6-0b9a-4bc6-906f-c4b3088b140e","block_type":"box","text":"Lorenzo A. Flores","page_number":28,"box":{"x":79,"y":623,"width":121,"height":8}},{"id":"57b26494-9a05-4054-b22b-0d51e53b286a","block_type":"box","text":"4","page_number":28,"box":{"x":201,"y":623,"width":4,"height":4}},{"id":"3a5aeed7-4402-4c19-b02b-a316f7bb6400","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,340","page_number":28,"box":{"x":213,"y":622,"width":451,"height":11}},{"id":"e4853916-6784-4825-8704-109798dc44ad","block_type":"box","text":"None $400,000","page_number":28,"box":{"x":724,"y":622,"width":168,"height":11}},{"id":"a246d27d-74be-446a-9c70-df1bb27bf790","block_type":"box","text":"Stayce D. Harris. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,262","page_number":28,"box":{"x":79,"y":637,"width":584,"height":12}},{"id":"bfc2f041-8cc1-497e-a9b6-34496c71e405","block_type":"box","text":"None $395,000","page_number":28,"box":{"x":724,"y":637,"width":168,"height":11}},{"id":"a9da8687-12d8-4efd-b44a-af5344f71fd3","block_type":"box","text":"J. Phillip Holloman . .","page_number":28,"box":{"x":78,"y":653,"width":153,"height":10}},{"id":"85574f13-4fb3-4ce5-b684-29136bb0f1f5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,587","page_number":28,"box":{"x":237,"y":652,"width":426,"height":11}},{"id":"d641352d-4b13-4340-85f7-10d403025897","block_type":"box","text":"None $425,000","page_number":28,"box":{"x":724,"y":652,"width":168,"height":11}},{"id":"95a56936-01a0-43d2-a2be-d3e72ceb24dd","block_type":"box","text":"R. Glenn Hubbard .","page_number":28,"box":{"x":79,"y":668,"width":135,"height":9}},{"id":"7035fc29-6041-4c42-9dcc-25ee60464700","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,967","page_number":28,"box":{"x":221,"y":667,"width":442,"height":11}},{"id":"c4233d9b-1334-4d34-9844-4d652fed4a27","block_type":"box","text":"None $560,000","page_number":28,"box":{"x":724,"y":667,"width":168,"height":11}},{"id":"204aceba-2edc-4ba5-96e3-cdc946c1f9d8","block_type":"box","text":"W. Carl Kester . .","page_number":28,"box":{"x":78,"y":683,"width":120,"height":9}},{"id":"f1d4af3e-663c-4d98-bec7-8f4440b7b667","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,062","page_number":28,"box":{"x":204,"y":682,"width":459,"height":11}},{"id":"df18d6bb-3a3b-410c-a9e2-c664adfaf19f","block_type":"box","text":"None $671,500","page_number":28,"box":{"x":724,"y":682,"width":168,"height":11}},{"id":"79b71628-60e8-4d81-90b4-f511ee3857d7","block_type":"box","text":"Catherine A. Lynch","page_number":28,"box":{"x":79,"y":698,"width":131,"height":11}},{"id":"be3bdf1a-2170-4e22-bde3-84f1fca9ea2f","block_type":"box","text":"5","page_number":28,"box":{"x":211,"y":698,"width":5,"height":5}},{"id":"db73b221-26a7-4fc7-813d-c2a0d6901c67","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,589","page_number":28,"box":{"x":221,"y":697,"width":443,"height":11}},{"id":"b391f210-0324-4032-a600-fa1207a557fd","block_type":"box","text":"None $610,000","page_number":28,"box":{"x":724,"y":697,"width":168,"height":11}},{"id":"e425f53e-ea24-4488-8cdc-19aa543db9a4","block_type":"box","text":"Francis C. Mahoney","page_number":28,"box":{"x":79,"y":713,"width":139,"height":11}},{"id":"8ac9b0e9-e0b5-4902-b7ee-5bbb1610150f","block_type":"box","text":"6","page_number":28,"box":{"x":218,"y":713,"width":4,"height":5}},{"id":"7b1ecd82-79b9-4d46-9709-cb7a140bf70b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A","page_number":28,"box":{"x":229,"y":713,"width":423,"height":11}},{"id":"c5c1b9da-d617-4693-9a75-c74226b3fc88","block_type":"box","text":"None None","page_number":28,"box":{"x":724,"y":713,"width":150,"height":9}},{"id":"fc153f20-cb9f-4d87-baf9-2c8282059870","block_type":"box","text":"Arthur P. Steinmetz","page_number":28,"box":{"x":78,"y":728,"width":137,"height":9}},{"id":"d27f483c-605c-4c24-80be-85553c22bada","block_type":"box","text":"7","page_number":28,"box":{"x":216,"y":729,"width":3,"height":4}},{"id":"e9262a6b-1f9a-4200-b2a0-ad55ee4a8dce","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,852","page_number":28,"box":{"x":229,"y":727,"width":434,"height":12}},{"id":"84d409c0-8835-4f30-b4bd-98f1821efe99","block_type":"box","text":"None $537,500","page_number":28,"box":{"x":724,"y":727,"width":168,"height":12}},{"id":"180a5cad-f2eb-4280-a7e4-77b962b1ce4e","block_type":"box","text":"Interested Trustees:","page_number":28,"box":{"x":70,"y":743,"width":143,"height":9}},{"id":"d042a979-e10a-44bb-9b10-5db371e8d840","block_type":"box","text":"Robert Fairbairn","page_number":28,"box":{"x":79,"y":759,"width":113,"height":8}},{"id":"98a7b24f-739e-4a05-8674-0d6b94f4035a","block_type":"box","text":"..............................................","page_number":28,"box":{"x":196,"y":766,"width":369,"height":1}},{"id":"4e356636-f6df-4d7f-97fa-0f87507fbd8a","block_type":"box","text":"None None None","page_number":28,"box":{"x":620,"y":759,"width":254,"height":8}},{"id":"a1e179eb-dd4a-44da-bb7a-bc85d4e4bf4e","block_type":"box","text":"John M. Perlowski","page_number":28,"box":{"x":78,"y":774,"width":127,"height":8}},{"id":"b607ed4b-f5ac-45f1-852f-2e3ba6012aa8","block_type":"box","text":"............................................","page_number":28,"box":{"x":213,"y":781,"width":352,"height":1}},{"id":"4798a44f-2420-4cff-9280-57c2ef4b59db","block_type":"box","text":"None None None","page_number":28,"box":{"x":620,"y":774,"width":254,"height":8}},{"id":"264322c2-a252-4ccf-8a2e-4bfd509a02ee","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":798,"width":3,"height":4}},{"id":"42f09a0c-af35-4484-9e87-0a2b591fbb52","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation see “Biographical Information” beginning on page","page_number":28,"box":{"x":94,"y":798,"width":814,"height":9}},{"id":"5dafe5d0-3792-4c7f-b053-8ee611db3636","block_type":"box","text":"I-15.","page_number":28,"box":{"x":94,"y":808,"width":23,"height":7}},{"id":"4b78ec54-272a-4281-aa91-ee38459855f1","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":821,"width":3,"height":3}},{"id":"457d8152-c0a4-4234-9429-f80e5dd1192f","block_type":"box","text":"For the Independent Trustees, this amount represents the aggregate compensation earned from the funds in the BlackRock Fixed-Income","page_number":28,"box":{"x":94,"y":821,"width":782,"height":9}},{"id":"f0ca9810-e85e-4350-a997-201153cd6514","block_type":"box","text":"Complex during the calendar year ended December 31, 2025. Of this amount, Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard, Dr. Kester,","page_number":28,"box":{"x":93,"y":831,"width":801,"height":9}},{"id":"0f3ed883-ffc6-49b4-b896-be51da12d67b","block_type":"box","text":"Ms. Lynch, and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000, $546,859, $603,900 and $268,750, respectively,","page_number":28,"box":{"x":94,"y":840,"width":780,"height":10}},{"id":"d6dcc891-d382-40a2-a782-acecffd6deee","block_type":"box","text":"pursuant to the BlackRock Fixed-Income Complex’s deferred compensation plan.","page_number":28,"box":{"x":94,"y":851,"width":457,"height":9}},{"id":"5cc792a5-b074-45ee-9a9d-9b6ff2e3b3f3","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":864,"width":3,"height":3}},{"id":"b4f1cdcd-6a00-460a-b85f-0d5e2022b432","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard,","page_number":28,"box":{"x":93,"y":863,"width":810,"height":9}},{"id":"b6334abb-3a05-4d4f-9068-14ae224f06a0","block_type":"box","text":"Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215, $2,544,830, $720,927 and $603,379,","page_number":28,"box":{"x":94,"y":873,"width":787,"height":9}},{"id":"5551235c-551c-4960-b696-3d64a176421a","block_type":"box","text":"respectively, as of December 31, 2025. Ms. Egan did not participate in the deferred compensation plan as of December 31, 2025.","page_number":28,"box":{"x":94,"y":884,"width":748,"height":9}},{"id":"ce0048ce-2f3f-47af-81b0-1394ec49ef5c","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":896,"width":4,"height":4}},{"id":"b59479bd-b655-4958-a6f8-fd80e5f62057","block_type":"box","text":"Mr. Flores became Chair of the Audit Committee effective as of March 9, 2026.","page_number":28,"box":{"x":94,"y":896,"width":452,"height":9}},{"id":"2423747e-07e9-4e17-b13a-c6fab211b949","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":909,"width":3,"height":3}},{"id":"e968fd1f-9c88-48ed-b82d-3ca28dcc183c","block_type":"box","text":"Ms. Lynch resigned as Trustee of the Trust effective as of March 9, 2026.","page_number":28,"box":{"x":94,"y":909,"width":422,"height":9}},{"id":"8cfabb70-a523-49f6-97f5-0f4aae29196c","block_type":"box","text":"I-18","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1f8d9603-92f4-44d4-9ba5-f70f979f14d0","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d04eab85-c92a-4ca3-99fa-e3c93702ebb4","block_type":"box","text":"6","page_number":29,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"a8fc43fa-41aa-4382-8346-3a8fc0bbd1ea","block_type":"box","text":"Mr. Mahoney was appointed as a Trustee of the Trust effective September 8, 2026.","page_number":29,"box":{"x":94,"y":45,"width":477,"height":9}},{"id":"9d39fbed-7c55-48ad-bebe-88e49a73ee8c","block_type":"box","text":"7","page_number":29,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"22b60ef4-1532-40bd-be0f-f48cb7a59434","block_type":"box","text":"Mr. Steinmetz became Chair of the Securities Lending Committee effective as of May 20, 2026.","page_number":29,"box":{"x":94,"y":58,"width":546,"height":9}},{"id":"50ec9088-9b03-4d7f-b9a6-347c96f08d99","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":29,"box":{"x":69,"y":86,"width":432,"height":11}},{"id":"75290957-c0ba-4e81-9bc5-d28de81e6e3b","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with the Manager (the","page_number":29,"box":{"x":101,"y":109,"width":767,"height":11}},{"id":"6226c293-974a-43a9-9ef3-6680f5b7203e","block_type":"box","text":"“Management Agreement”), pursuant to which the Manager receives as compensation for its services to the Fund, a","page_number":29,"box":{"x":70,"y":124,"width":830,"height":11}},{"id":"4ccaf7a8-9bbe-4d73-a1cc-cd0384c09dea","block_type":"box","text":"fee with respect to the Fund at the end of each month.","page_number":29,"box":{"x":68,"y":139,"width":389,"height":11}},{"id":"959f0343-6e15-48d9-b316-5d02796a2f0d","block_type":"box","text":"The Manager has contractually agreed to waive 0.05% of the management fee through June 30, 2028.","page_number":29,"box":{"x":101,"y":162,"width":731,"height":11}},{"id":"f9bb923a-21ef-4e3a-a922-051eb6aea73b","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":29,"box":{"x":102,"y":184,"width":762,"height":12}},{"id":"f2203b94-dbfe-49a2-b9dc-af4b3984942d","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":29,"box":{"x":69,"y":200,"width":799,"height":11}},{"id":"4e4085f2-6ce6-4988-b690-4b324b48e456","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":29,"box":{"x":68,"y":215,"width":726,"height":11}},{"id":"5baa77eb-bd65-4c7b-aa45-6341947f9480","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":29,"box":{"x":69,"y":230,"width":797,"height":11}},{"id":"d894972c-4852-4958-8b4d-e2c239158095","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":29,"box":{"x":69,"y":245,"width":789,"height":11}},{"id":"4c44b341-dbb4-43a3-aa3a-a145b56ec6f8","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. 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In addition, the Manager may delegate certain of","page_number":29,"box":{"x":68,"y":500,"width":825,"height":11}},{"id":"89e803f6-ad0c-4cd9-9e92-399d29501747","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":29,"box":{"x":70,"y":515,"width":801,"height":11}},{"id":"2984f785-0e89-44a6-bcb7-4a1fca955507","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":29,"box":{"x":70,"y":531,"width":823,"height":11}},{"id":"9e2bf542-1212-4421-b5e0-c3b2123a4768","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":29,"box":{"x":70,"y":546,"width":508,"height":11}},{"id":"89857927-65c1-494a-a95f-502037ce6229","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":29,"box":{"x":69,"y":576,"width":335,"height":11}},{"id":"a10482a4-1958-444a-94cc-dc5b6541f591","block_type":"box","text":"The Fund is managed by a team of financial professionals comprised of Michael Kalinoski, CFA, Director at","page_number":29,"box":{"x":101,"y":598,"width":761,"height":12}},{"id":"f415b61c-cb8f-459d-b624-123c6dbfc988","block_type":"box","text":"BlackRock, Kevin Maloney, CFA, Managing Director at BlackRock, Ryan McDonald, CFA, Managing Director at","page_number":29,"box":{"x":70,"y":614,"width":773,"height":11}},{"id":"d2c1fbc5-db3c-4449-b7d6-2f52c83a6d8e","block_type":"box","text":"BlackRock, Phillip Soccio, CFA, Director at BlackRock, and Sean Carney, Managing Director at BlackRock. Each is a","page_number":29,"box":{"x":70,"y":629,"width":818,"height":11}},{"id":"1d00f2ea-3d3b-45cc-89c7-63b68b86170a","block_type":"box","text":"member of BlackRock’s municipal tax-exempt management group. Messrs. Kalinoski, Maloney, McDonald, Soccio and","page_number":29,"box":{"x":69,"y":644,"width":839,"height":11}},{"id":"50b73f0e-8151-4366-af21-41aa38d0ffa2","block_type":"box","text":"Carney are jointly and primarily responsible for managing the Fund.","page_number":29,"box":{"x":69,"y":659,"width":474,"height":11}},{"id":"c882d4f0-93c0-456c-9ec3-31eab5efea62","block_type":"box","text":"Other Funds and Accounts Managed","page_number":29,"box":{"x":69,"y":689,"width":264,"height":11}},{"id":"0b761b4e-1cc9-4e06-b9f2-40ec5bc95a59","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the Fund’s","page_number":29,"box":{"x":101,"y":712,"width":806,"height":11}},{"id":"afcdeaf1-27d7-442a-8f08-2ba773d8ffe7","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 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$0 $0 $0 $0 $0","page_number":30,"box":{"x":368,"y":203,"width":506,"height":9}},{"id":"fea3cb69-71ea-4bfa-a0d4-f52e4f4d7b7c","block_type":"box","text":"Phillip Soccio, CFA 21 0 0 0 0 0","page_number":30,"box":{"x":74,"y":217,"width":797,"height":8}},{"id":"06931338-f125-4cec-afef-f9cfb72632ef","block_type":"box","text":"$23.22 Billion $0 $0 $0 $0 $0","page_number":30,"box":{"x":364,"y":229,"width":510,"height":8}},{"id":"aafb3dfc-78c4-4bb1-9777-6d428bdd1443","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":263,"width":304,"height":12}},{"id":"eb4b123b-2b51-4c81-b940-38706dcc7510","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":286,"width":656,"height":11}},{"id":"d3b36e0e-cc75-493d-ac7d-6f13b747d4d1","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":309,"width":774,"height":11}},{"id":"35aa9183-e9e9-414a-bb28-15c9b11be30f","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":324,"width":837,"height":11}},{"id":"cc3c91e1-3058-4aae-85b5-1c79e6f2a3b3","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":30,"box":{"x":69,"y":339,"width":823,"height":11}},{"id":"d332df84-d4b2-4679-bf7a-4d968a21cdc2","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":30,"box":{"x":69,"y":354,"width":799,"height":11}},{"id":"da6e81a7-0819-4310-a4a5-19fdb6a37cb2","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":369,"width":670,"height":11}},{"id":"41c81893-4fe3-48ff-bbfa-011762dfb2ef","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":392,"width":148,"height":11}},{"id":"ff29ae4c-aa31-40ad-98c0-61491cc9773b","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":392,"width":640,"height":11}},{"id":"0f294e18-1dae-4519-9295-9f704aa82e3c","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":407,"width":32,"height":9}},{"id":"04d2c4a6-5359-479c-888d-4d530693bfac","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":69,"y":437,"width":277,"height":11}},{"id":"7107a334-9d5f-4199-9bed-a70bf5967fa2","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":30,"box":{"x":102,"y":460,"width":792,"height":11}},{"id":"efc33411-cc21-4835-ac4b-191c02cb47b6","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":30,"box":{"x":68,"y":475,"width":800,"height":11}},{"id":"450a0b20-d45a-49a8-bf4d-54ba548504a0","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":30,"box":{"x":69,"y":490,"width":777,"height":11}},{"id":"7940c8a4-470f-41fd-91c8-1d69802a687e","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":30,"box":{"x":70,"y":505,"width":817,"height":11}},{"id":"bd8ad91f-0a93-4547-9c1d-692da72af157","block_type":"box","text":"portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":30,"box":{"x":70,"y":520,"width":830,"height":12}},{"id":"6c81fc1a-9e9f-47f8-90da-556ed188f69c","block_type":"box","text":"which the performance of the Fund or other accounts managed by the portfolio managers are measured. Among","page_number":30,"box":{"x":68,"y":535,"width":801,"height":12}},{"id":"eafded02-275d-4fa0-bd0a-a9caa0f91f3e","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio","page_number":30,"box":{"x":69,"y":550,"width":819,"height":12}},{"id":"ac1c5d1d-a956-4496-a5a8-8957cf600efc","block_type":"box","text":"manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio","page_number":30,"box":{"x":69,"y":566,"width":805,"height":11}},{"id":"cc48098e-540d-4009-846f-bee804575ddd","block_type":"box","text":"manager relative to the various benchmarks. Performance of fixed-income funds is measured on a pre-tax and/or","page_number":30,"box":{"x":69,"y":581,"width":807,"height":11}},{"id":"37334fb7-fc14-4257-a3ce-5411c9b259f9","block_type":"box","text":"after-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable. With respect to these","page_number":30,"box":{"x":69,"y":596,"width":798,"height":11}},{"id":"94537bd0-c207-4cbd-bb2c-99615932142e","block_type":"box","text":"portfolio managers, such benchmarks for the Fund and other accounts are:","page_number":30,"box":{"x":70,"y":611,"width":534,"height":11}},{"id":"c3e26fec-5f19-46a3-9c8a-8eb688a9ae3b","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":30,"box":{"x":69,"y":639,"width":267,"height":9}},{"id":"bf816ef3-0700-4f89-a806-81478170f671","block_type":"box","text":"Michael Kalinoski, CFA","page_number":30,"box":{"x":70,"y":656,"width":160,"height":10}},{"id":"85cf190d-204a-4048-a9c2-4a03e27e9932","block_type":"box","text":"Kevin Maloney, CFA","page_number":30,"box":{"x":70,"y":671,"width":137,"height":11}},{"id":"477d6087-cd0e-491a-af66-da36667e614c","block_type":"box","text":"Ryan McDonald, CFA","page_number":30,"box":{"x":70,"y":686,"width":146,"height":11}},{"id":"d08dd1ac-0bd6-4096-bd1e-2926bb08a6f2","block_type":"box","text":"Phillip Soccio, CFA","page_number":30,"box":{"x":69,"y":701,"width":130,"height":11}},{"id":"4df90c1d-8821-4ab2-ac35-059bc29edb54","block_type":"box","text":"A combination of market-based indices (e.g., Bloomberg Municipal Bond Index), certain","page_number":30,"box":{"x":264,"y":656,"width":620,"height":11}},{"id":"376f183d-eeed-43b6-b534-b5abb695d017","block_type":"box","text":"customized indices and certain fund industry peer groups.","page_number":30,"box":{"x":264,"y":671,"width":414,"height":11}},{"id":"be9e98e9-fdc7-493e-b910-ad31d349285e","block_type":"box","text":"Sean Carney A combination of market-based indices (e.g., Bloomberg Municipal Bond Index), certain","page_number":30,"box":{"x":69,"y":724,"width":815,"height":11}},{"id":"c5bf23a9-963a-413c-b24b-a7de7b6c2b5e","block_type":"box","text":"customized indices and certain fund industry peer groups. Due to Portfolio Manager Sean","page_number":30,"box":{"x":264,"y":739,"width":640,"height":11}},{"id":"6d19c25e-d8db-47e8-9d4e-02f48984ec23","block_type":"box","text":"Carney’s unique position (Portfolio Manager and Co-Chief Investment Officer of Tax","page_number":30,"box":{"x":265,"y":754,"width":590,"height":11}},{"id":"bb531961-8002-4b58-a77e-296b4b2d33ec","block_type":"box","text":"Exempt Fixed Income) his compensation does not solely reflect his role as PM of the","page_number":30,"box":{"x":265,"y":769,"width":602,"height":11}},{"id":"dcc47168-6508-4c26-bfc7-ac9a77a47b96","block_type":"box","text":"funds managed by him. The performance of his fund(s) are included in consideration of","page_number":30,"box":{"x":264,"y":784,"width":623,"height":11}},{"id":"6c936a41-4202-4b70-9bf8-c2840b29171f","block_type":"box","text":"his incentive compensation but given his unique role it is not the sole driver of","page_number":30,"box":{"x":265,"y":799,"width":558,"height":12}},{"id":"c86dbf53-4fc4-4812-9038-7b3e65e7772d","block_type":"box","text":"compensation.","page_number":30,"box":{"x":264,"y":815,"width":104,"height":10}},{"id":"3de03d5c-f033-44cd-bba0-c0dc17ab2328","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":838,"width":389,"height":11}},{"id":"530fb3c0-3ae1-4edf-9776-80e5ce901f88","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":839,"width":383,"height":10}},{"id":"1d1adf72-6b15-4327-bb46-c2ddae07cb8b","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":853,"width":815,"height":12}},{"id":"646363bb-3522-4cfa-b22f-db948a8e8d41","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":30,"box":{"x":68,"y":869,"width":522,"height":11}},{"id":"4f8dba58-fb24-4311-aa25-9d1611f44fae","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":30,"box":{"x":102,"y":891,"width":760,"height":12}},{"id":"b1100be3-7510-4a83-893c-3472a8290e13","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":906,"width":795,"height":12}},{"id":"5848b591-bc2a-40c6-add3-a5e0ed2bdade","block_type":"box","text":"I-20","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"09850035-e63e-4824-bb81-f5b870e92b1e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c494acc3-a414-4268-8527-bda4e6d69528","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":31,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"4badd409-7a17-404f-9b39-aa2f26f0a8e4","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":31,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f8d1b613-3d22-49ab-9cb9-fa1d5116710f","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":31,"box":{"x":68,"y":75,"width":839,"height":11}},{"id":"2abb63a8-9e49-4ae4-8ad2-a3bc5a7b18d2","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":31,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"6283c8b9-7240-4d76-a312-c0225d4a9333","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":31,"box":{"x":70,"y":105,"width":820,"height":11}},{"id":"2cba8aa1-d6b0-43c8-b9da-2e003dd4bc56","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":31,"box":{"x":70,"y":120,"width":801,"height":12}},{"id":"3f50f47d-164e-455f-bf49-a4d6b929fdb5","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":31,"box":{"x":70,"y":135,"width":831,"height":11}},{"id":"352bbb48-bed0-4ef6-ab52-2ffd59d345ee","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":150,"width":479,"height":12}},{"id":"71d83cd8-4501-4f08-b4a0-29027260b500","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":173,"width":785,"height":11}},{"id":"84e0f311-e8bc-42fc-badc-0b82863705d6","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":31,"box":{"x":68,"y":188,"width":836,"height":12}},{"id":"6f6ad197-ae60-4d4c-a986-11569f9d296a","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":203,"width":821,"height":12}},{"id":"ec61a23d-14a1-4a9d-8861-051315052b4c","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":31,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"bed748cc-5e20-402a-8090-25b30781517c","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"abfa30d5-963b-4214-a11c-6676b729e81e","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":249,"width":414,"height":11}},{"id":"9d313886-6516-432b-bb55-3b5e0ec9b898","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":271,"width":218,"height":11}},{"id":"abea754b-b98d-40d5-ae58-89709035de76","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":31,"box":{"x":327,"y":271,"width":552,"height":12}},{"id":"71e756d9-82c8-4fc8-b79d-1aeaaafde8ef","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":31,"box":{"x":69,"y":286,"width":582,"height":12}},{"id":"93ce4f77-a582-4bce-a332-626600c9c196","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":309,"width":167,"height":11}},{"id":"5452c6a8-667b-4d69-9654-7b24701ca563","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":309,"width":614,"height":11}},{"id":"7b497a0f-db56-4301-b98c-e31ba6e810f7","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"c5710d96-66f9-412b-9ace-f187119cd61e","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":339,"width":785,"height":12}},{"id":"f844bdbe-35b9-44d0-88b8-340b90b514f0","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":31,"box":{"x":69,"y":354,"width":830,"height":12}},{"id":"acfbd7b5-af28-422f-bd34-29fdae188316","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"fe67f174-ab56-4e76-b991-8878a10342b6","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":384,"width":831,"height":12}},{"id":"eb43df4b-4d6c-4138-8646-271c981f2a9a","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":400,"width":798,"height":11}},{"id":"404f43cb-8835-4cb9-9d9b-f5861df293e9","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":415,"width":809,"height":11}},{"id":"e69ebb32-93ea-460f-81c8-5104b9eafb72","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":430,"width":793,"height":11}},{"id":"d3959404-3791-4e97-8c96-1dbdc0f853e8","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":31,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"e434b5f0-059e-4ff3-ad1e-d21edcefeb3c","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":460,"width":805,"height":11}},{"id":"01492f7a-b8b0-495c-8157-7f1dd6514c5b","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":31,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"b3b59cb1-c0df-419b-a0a1-bcfbf68a9d69","block_type":"box","text":"participate in these plans.","page_number":31,"box":{"x":70,"y":491,"width":185,"height":11}},{"id":"a9fd951f-7505-4b71-b98b-eca71f5d2f9d","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":521,"width":268,"height":11}},{"id":"610f04c6-e834-4ec9-b192-ae45b6da8c3f","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":543,"width":731,"height":12}},{"id":"6544a522-1be2-4663-bf14-9411347a4307","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":559,"width":519,"height":11}},{"id":"c6aab086-2ba6-46ca-b09b-1c67f4fe938a","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":597,"width":105,"height":9}},{"id":"47935771-e536-4f60-8f41-1c8d02794ef1","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":587,"width":129,"height":9}},{"id":"b6786208-4360-451d-a6cf-9a3b52320458","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":597,"width":173,"height":9}},{"id":"9e6f9771-2702-4367-a6d7-9fc833c2a0c9","block_type":"box","text":"Kevin Maloney, CFA . . .","page_number":31,"box":{"x":70,"y":615,"width":163,"height":11}},{"id":"b48b06c4-0279-476d-9ad6-b6121bb93e3c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":31,"box":{"x":239,"y":614,"width":564,"height":11}},{"id":"4f8be94c-c3c0-4cb1-a693-c853e2424a4c","block_type":"box","text":"$10,000","page_number":31,"box":{"x":808,"y":614,"width":62,"height":11}},{"id":"26cf812c-96a4-498b-89af-ff5194ba8d6e","block_type":"box","text":"Ryan McDonald, CFA","page_number":31,"box":{"x":70,"y":630,"width":146,"height":11}},{"id":"90efdb2f-649d-42b1-9613-299f2c022123","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":31,"box":{"x":223,"y":629,"width":580,"height":11}},{"id":"a362b3ac-5a88-4aef-904b-de666ffe8129","block_type":"box","text":"$10,000","page_number":31,"box":{"x":808,"y":629,"width":62,"height":11}},{"id":"0ac6bd5f-0c2b-4b4d-a770-9900e1aae434","block_type":"box","text":"Michael Kalinoski, CFA . . .","page_number":31,"box":{"x":70,"y":645,"width":187,"height":10}},{"id":"d75651a7-2705-49e3-8fa0-66773c341f4b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":31,"box":{"x":263,"y":644,"width":540,"height":11}},{"id":"88f5a923-82ee-4601-a5ab-cd7d29bee504","block_type":"box","text":"$10,000","page_number":31,"box":{"x":808,"y":644,"width":62,"height":11}},{"id":"125408d5-e971-4027-869a-e978d00a926e","block_type":"box","text":"Phillip Soccio, CFA","page_number":31,"box":{"x":69,"y":660,"width":130,"height":11}},{"id":"1f666b9f-6eac-49f9-8d0f-e2bc050e65a1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":31,"box":{"x":206,"y":659,"width":597,"height":11}},{"id":"d0dcfdc6-bce0-4949-b2b9-2586b1c10885","block_type":"box","text":"$10,000","page_number":31,"box":{"x":808,"y":659,"width":62,"height":12}},{"id":"9bc5c923-1583-494f-9147-42472653657e","block_type":"box","text":"Sean Carney . . .","page_number":31,"box":{"x":69,"y":675,"width":115,"height":11}},{"id":"d89ad50e-4d6e-4c84-9ed3-8aefbcaf46fb","block_type":"box","text":"................................................................","page_number":31,"box":{"x":190,"y":683,"width":515,"height":1}},{"id":"28dc01d7-ea10-4b2e-800a-e585eed7e779","block_type":"box","text":"$10,001 - $50,000","page_number":31,"box":{"x":754,"y":675,"width":138,"height":11}},{"id":"227624cc-b655-46fe-ad2c-d325ba3bf9de","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":707,"width":403,"height":11}},{"id":"1d4b364d-f9d1-4ae7-adef-8938e16947cc","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":729,"width":727,"height":12}},{"id":"85138c26-9022-4f2d-b448-df79b55106dd","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":744,"width":814,"height":12}},{"id":"2939e84c-b8ce-4d88-a887-e531be1ccac5","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":31,"box":{"x":70,"y":760,"width":837,"height":11}},{"id":"cf8506c9-2e87-4d88-9b16-53a02445eb0e","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":775,"width":810,"height":11}},{"id":"0d10d061-8939-499c-903e-0bef8385f8fc","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":790,"width":782,"height":11}},{"id":"d5a1729f-28d6-4a94-a1b2-8f8e0080ace8","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":805,"width":830,"height":11}},{"id":"5a59ca28-b270-4fcd-9eaf-a3f96ce0c5f9","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":820,"width":828,"height":11}},{"id":"2f7398d5-f00a-41f8-9be9-1d5882fda311","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":31,"box":{"x":68,"y":835,"width":834,"height":11}},{"id":"03ea317c-e2de-4f74-a071-326def9dbcd7","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":31,"box":{"x":70,"y":850,"width":777,"height":11}},{"id":"c81779f5-c954-4cf8-ab22-ba762286a773","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":865,"width":821,"height":12}},{"id":"96798c0e-c503-4278-9521-80677d822425","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":881,"width":819,"height":11}},{"id":"43e44ba5-0fc7-486b-86ff-a3d2b7e00698","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":896,"width":832,"height":11}},{"id":"15ae7f75-e175-403b-a270-4a5e5a353643","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":911,"width":804,"height":11}},{"id":"11ae6791-afb3-4371-865f-31f3a1227368","block_type":"box","text":"I-21","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"68c90ffa-27d9-4e7e-94f6-3ef01571f251","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae8e355c-5aef-47f2-bcc3-51840c285c57","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":32,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"e6d18e50-f9fe-4022-b62f-8d8dcbb41464","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":32,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"feb0f456-1ff0-412d-ae42-86bfab9fbe7e","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":32,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"b4317446-c07e-4213-8c8e-21036854ec88","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":32,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"d9b6faa5-87c8-4365-a99a-c9e65136c033","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":32,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"7a78ad31-ba75-43d9-bcb4-3b0f6d77c791","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that a portfolio manager may be managing","page_number":32,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"9f9c9b51-54b2-4f9e-947f-effce60c864e","block_type":"box","text":"hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts,","page_number":32,"box":{"x":69,"y":135,"width":811,"height":12}},{"id":"f728af17-dbfa-4260-b70d-9c41e701b797","block_type":"box","text":"subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees","page_number":32,"box":{"x":69,"y":150,"width":839,"height":12}},{"id":"ee6fa248-74a4-4a76-97d8-173d9d72efba","block_type":"box","text":"earned on such accounts. Currently, the portfolio managers of this Fund are not entitled to receive a portion of","page_number":32,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"165aa205-7c96-480e-84fc-d17fef7367fe","block_type":"box","text":"incentive fees of other accounts.","page_number":32,"box":{"x":70,"y":181,"width":231,"height":9}},{"id":"c5b3e513-6154-446a-8a04-5b196af22fba","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":32,"box":{"x":101,"y":203,"width":788,"height":12}},{"id":"5e1c0d3e-8dd4-4b51-a294-5620a5eb9a8b","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":32,"box":{"x":70,"y":218,"width":839,"height":11}},{"id":"50bb2c2e-f406-47c2-8fc3-f2f61f49a6bd","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":32,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"88198b35-8602-4d8c-b9e0-e77cb7ba2026","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":32,"box":{"x":68,"y":249,"width":812,"height":11}},{"id":"02a796d0-001c-4b4c-b2a9-b14c4152605b","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":32,"box":{"x":69,"y":264,"width":777,"height":11}},{"id":"cf5c0e91-357e-49a4-a340-a67bedb15692","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":32,"box":{"x":70,"y":279,"width":826,"height":11}},{"id":"bff81071-ddf4-4191-81b3-3bfbd8810085","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":309,"width":72,"height":9}},{"id":"9e8f2ea0-a6ef-4a6e-b389-24a0b1338073","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) has been retained to act as custodian for the Fund and is","page_number":32,"box":{"x":102,"y":332,"width":800,"height":11}},{"id":"ab9a31cc-d4f1-475b-b7a3-8dd93aab4502","block_type":"box","text":"located at One Congress Street, Suite 1, Boston, Massachusetts 02114-2016. The custodian, among other things,","page_number":32,"box":{"x":70,"y":347,"width":821,"height":11}},{"id":"7ea564a6-4065-453c-8d9e-9cb55f234515","block_type":"box","text":"maintains a custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon","page_number":32,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"1d7ad530-523a-46ab-9a46-9242e269d1a4","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":32,"box":{"x":70,"y":377,"width":813,"height":11}},{"id":"94d684bb-9c67-4c50-848b-f922c931c714","block_type":"box","text":"account of the assets of the Fund.","page_number":32,"box":{"x":69,"y":392,"width":244,"height":9}},{"id":"82662e7b-0846-4fe4-93ab-e87a44edad80","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":423,"width":150,"height":11}},{"id":"b3a797a1-d107-48fe-9408-d2b9a2574a21","block_type":"box","text":"State Street serves as the accounting services provider for the Fund. State Street maintains the books of","page_number":32,"box":{"x":102,"y":445,"width":754,"height":12}},{"id":"c16aa38c-a1ae-43b4-b385-3988e0d5bb6d","block_type":"box","text":"account and other financial records; records general ledger entries; calculates daily net income; reconciles activity to","page_number":32,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"10dea071-2531-4686-bfe5-ea9ee9be0275","block_type":"box","text":"the trial balance; calculates and publishes daily net asset value; prepares account balances; and provides such other","page_number":32,"box":{"x":68,"y":476,"width":840,"height":11}},{"id":"3fb849e6-7692-4ce2-a514-bcbf2ceb80ef","block_type":"box","text":"accounting services as may be required. In connection with its accounting services, State Street also provides","page_number":32,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"c03e4663-9eea-41c1-8070-d24f9ece0a27","block_type":"box","text":"certain administration services.","page_number":32,"box":{"x":69,"y":506,"width":225,"height":9}},{"id":"bd90a7a9-8da1-43ab-a7e9-939cbc6cd140","block_type":"box","text":"Prior to May 31, 2021, the Fund also paid the Manager for certain accounting services. Amounts shown as paid","page_number":32,"box":{"x":102,"y":528,"width":799,"height":12}},{"id":"935af2d2-3757-435f-bd56-29bf25178b12","block_type":"box","text":"to the Manager for the fiscal year ended May 31, 2022 were for accounting services provided prior to the termination","page_number":32,"box":{"x":68,"y":543,"width":837,"height":12}},{"id":"261e906a-536f-4d18-b990-8e759e015e2f","block_type":"box","text":"of such agreement.","page_number":32,"box":{"x":69,"y":559,"width":136,"height":11}},{"id":"b57e32f0-9b64-4d92-83a2-8e2f23a4034e","block_type":"box","text":"The table below shows the amounts paid by the Fund to State Street and the Manager for accounting services","page_number":32,"box":{"x":101,"y":581,"width":786,"height":12}},{"id":"c242ef2a-b6d0-4d6c-9850-c12237770385","block_type":"box","text":"for the periods shown:","page_number":32,"box":{"x":68,"y":596,"width":159,"height":11}},{"id":"8e554fb0-430b-406c-887a-548b0e32e29a","block_type":"box","text":"Fees Paid to","page_number":32,"box":{"x":712,"y":625,"width":72,"height":7}},{"id":"b06145b5-5c3d-40da-b4ac-a7d6093bd430","block_type":"box","text":"State Street","page_number":32,"box":{"x":712,"y":635,"width":71,"height":7}},{"id":"2cf20ffd-998a-43be-a78c-b2e7b9a1d871","block_type":"box","text":"Fees Paid to the","page_number":32,"box":{"x":814,"y":625,"width":95,"height":7}},{"id":"1a603524-6cc7-4a66-bac2-e0923c3ec999","block_type":"box","text":"Manager","page_number":32,"box":{"x":837,"y":635,"width":50,"height":9}},{"id":"c76dee15-b8ba-4939-b5b4-788ebd9bd0fa","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":653,"width":439,"height":11}},{"id":"4183231b-143a-4a34-85b9-056c59f06779","block_type":"box","text":".....................","page_number":32,"box":{"x":515,"y":660,"width":165,"height":1}},{"id":"d42de300-50e6-40c5-a5d9-8842eefe644a","block_type":"box","text":"$292,885 $0","page_number":32,"box":{"x":712,"y":652,"width":159,"height":11}},{"id":"38609238-b88d-41ea-a292-92fefabfa8b2","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":668,"width":439,"height":11}},{"id":"f9d96ef3-b884-48d7-88ea-9e411d48bc53","block_type":"box","text":".....................","page_number":32,"box":{"x":515,"y":675,"width":165,"height":2}},{"id":"aa54da93-ee67-4b20-9bca-6bb7a3e8117c","block_type":"box","text":"$326,939 $0","page_number":32,"box":{"x":712,"y":667,"width":159,"height":11}},{"id":"7db0efdf-91b4-4347-b231-ea79e72bae62","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":683,"width":439,"height":11}},{"id":"2951f4ad-1eb0-4561-b8f5-4cbe1c003f47","block_type":"box","text":".....................","page_number":32,"box":{"x":515,"y":690,"width":165,"height":2}},{"id":"f044f2c1-bcb7-49ad-a864-31aa35f35ae3","block_type":"box","text":"$394,652 $0","page_number":32,"box":{"x":712,"y":682,"width":159,"height":11}},{"id":"3518bad4-36ea-45a2-a4d7-5feb208c678e","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":32,"box":{"x":68,"y":714,"width":432,"height":11}},{"id":"8cdbb38a-7bed-41a0-932e-9cb10d3052d1","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":32,"box":{"x":102,"y":737,"width":765,"height":11}},{"id":"c9499006-2a22-4fae-895c-d526ffd82345","block_type":"box","text":"Flanders Road Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":32,"box":{"x":70,"y":752,"width":833,"height":11}},{"id":"f0deb850-201d-4e95-ba9d-1ea43262f0f2","block_type":"box","text":"Fund.","page_number":32,"box":{"x":70,"y":767,"width":36,"height":9}},{"id":"748b21c9-615c-4e39-9e23-269bf5c7ee2a","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":32,"box":{"x":102,"y":790,"width":762,"height":11}},{"id":"52e42789-6350-45ff-ac7f-28ece611bf05","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":32,"box":{"x":70,"y":805,"width":834,"height":11}},{"id":"3bb228e3-e5e9-41f0-9a35-ffde415490bf","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":32,"box":{"x":70,"y":820,"width":823,"height":11}},{"id":"98307e84-c5da-400e-95e2-b37681081a0f","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual report.","page_number":32,"box":{"x":69,"y":835,"width":807,"height":11}},{"id":"4224cc73-57dd-4083-b3d3-d1f22dae88d3","block_type":"box","text":"I-22","page_number":32,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"60c3933a-93ef-4175-9a77-d41568b38918","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09352f79-bfd4-423a-a39c-e3555d9573b6","block_type":"box","text":"Set forth below are the amounts the Fund reimbursed the Manager pursuant to such agreement in the amounts","page_number":33,"box":{"x":102,"y":45,"width":796,"height":11}},{"id":"eb629080-eced-45d4-8dba-d11d26a42970","block_type":"box","text":"set forth below:","page_number":33,"box":{"x":69,"y":60,"width":110,"height":9}},{"id":"db4cc4f0-fe33-47f6-8949-eee15fb2524c","block_type":"box","text":"Fees Paid to the Manager Fees Waived by the Manager","page_number":33,"box":{"x":561,"y":88,"width":348,"height":9}},{"id":"e3c93c52-ead4-4aef-9093-15528370b0ef","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . .","page_number":33,"box":{"x":70,"y":106,"width":264,"height":11}},{"id":"b002aac5-00a5-4245-88b8-b2364bc11da8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $7,896 $0","page_number":33,"box":{"x":340,"y":105,"width":494,"height":11}},{"id":"ecce9c2a-cba2-49af-b2b1-3f4f408cf1a0","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . .","page_number":33,"box":{"x":70,"y":121,"width":264,"height":11}},{"id":"ae25ba37-7f8f-40c0-909a-3a3f95d98e68","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $8,219 $0","page_number":33,"box":{"x":340,"y":120,"width":494,"height":11}},{"id":"264b79e6-3713-4b62-b417-0c5fbb14071f","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":33,"box":{"x":70,"y":136,"width":264,"height":11}},{"id":"91d637dc-f322-4916-8105-7c8cd5244b15","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $9,588 $0","page_number":33,"box":{"x":340,"y":135,"width":494,"height":11}},{"id":"f743f6d3-19e5-40f3-a555-1088106f66cd","block_type":"box","text":"Credit Agreement","page_number":33,"box":{"x":69,"y":168,"width":129,"height":11}},{"id":"8f08e72a-f5a0-4534-b466-a2ea4e41b8e5","block_type":"box","text":"The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":33,"box":{"x":101,"y":190,"width":757,"height":11}},{"id":"6d2753fb-9a40-4cce-883e-9edd7c1d0de7","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":33,"box":{"x":69,"y":205,"width":817,"height":12}},{"id":"4e43ecd8-3025-42e3-ac44-b47044d94bdc","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":33,"box":{"x":68,"y":220,"width":743,"height":12}},{"id":"5ebc1e6c-141a-4041-aece-4c71035d83a1","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Fund, can borrow up","page_number":33,"box":{"x":69,"y":235,"width":825,"height":12}},{"id":"3ea3fb4d-6744-4307-9475-a5383c87893c","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":33,"box":{"x":68,"y":250,"width":818,"height":12}},{"id":"6b6320be-3039-48f3-bf9e-ad2cfb6b59d4","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":33,"box":{"x":70,"y":266,"width":761,"height":11}},{"id":"f7647c36-7095-48bd-93f9-5294264a5344","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":33,"box":{"x":69,"y":281,"width":768,"height":11}},{"id":"cdbb1621-1f40-4b9b-b3f6-7001f5d944bc","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":33,"box":{"x":68,"y":296,"width":825,"height":11}},{"id":"59e98e25-4352-4f0c-9135-8dab9e0a1828","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":33,"box":{"x":69,"y":311,"width":805,"height":11}},{"id":"bc17eb80-e262-4a92-8c30-252a130eb53f","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":33,"box":{"x":69,"y":326,"width":838,"height":11}},{"id":"f3e636fc-b097-4d60-b18e-b5d832c5b8ee","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":33,"box":{"x":68,"y":341,"width":801,"height":12}},{"id":"23351104-cb77-4af2-b7d4-19008bc977a4","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":33,"box":{"x":69,"y":356,"width":833,"height":12}},{"id":"01f813d6-3551-474b-bf69-d66106c66ad3","block_type":"box","text":"charged interest at a variable rate.","page_number":33,"box":{"x":69,"y":372,"width":245,"height":11}},{"id":"5f2e6e6b-68dc-4a11-a1dc-dbef6d9b6ca6","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":33,"box":{"x":68,"y":402,"width":491,"height":11}},{"id":"0a17431a-fcd1-4aed-83a6-b78da5862922","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":424,"width":773,"height":12}},{"id":"4490f287-d288-44ce-9ade-c09dd27e7d85","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for each of the Fund’s last","page_number":33,"box":{"x":69,"y":440,"width":834,"height":11}},{"id":"866598bf-caf1-47b8-93f5-61c3cf409ffc","block_type":"box","text":"three fiscal years. BlackRock Investments, LLC (previously defined as “BRIL” or the “Distributor”), an affiliate of the","page_number":33,"box":{"x":68,"y":455,"width":826,"height":11}},{"id":"e6a5737b-3e5c-46ea-8c28-70e0faf99980","block_type":"box","text":"Manager, acts as the Fund’s sole distributor.","page_number":33,"box":{"x":70,"y":470,"width":317,"height":11}},{"id":"e1c642c1-2ee4-47b7-9418-8d3134baabed","block_type":"box","text":"Investor A and Investor A1 Sales Charge Information","page_number":33,"box":{"x":70,"y":500,"width":373,"height":11}},{"id":"7bb9f066-ca98-42cf-962d-b0cdd6148816","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":647,"y":528,"width":103,"height":7}},{"id":"aae41179-789f-47e3-9bd7-a8cf41fe76b4","block_type":"box","text":"For the Fiscal Year Ended May 31,","page_number":33,"box":{"x":69,"y":574,"width":199,"height":9}},{"id":"8e6a3452-742c-43a2-a634-3a7db1b08b0d","block_type":"box","text":"Gross 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. . . . . . . . . . $0 $0 $0 $0","page_number":33,"box":{"x":69,"y":745,"width":801,"height":11}},{"id":"17971c27-b84b-4008-a1cd-41ffb554236c","block_type":"box","text":"Investor C Sales Charge Information","page_number":33,"box":{"x":70,"y":777,"width":257,"height":12}},{"id":"16c1ba5f-c5cd-4e9f-80fe-89932e0e682b","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":782,"y":806,"width":102,"height":7}},{"id":"a59e8a01-c6b9-4e6e-9acf-61063d29c220","block_type":"box","text":"For the Fiscal Year Ended May 31,","page_number":33,"box":{"x":69,"y":841,"width":199,"height":9}},{"id":"26a1ac91-9154-475c-afe3-e42e344beaed","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":771,"y":821,"width":40,"height":7}},{"id":"2569ade9-9ca4-4d29-8912-25f3bd751c27","block_type":"box","text":"Received by","page_number":33,"box":{"x":757,"y":831,"width":69,"height":9}},{"id":"4f5ba8a4-ba0c-4a22-8c91-8f87c6f95076","block_type":"box","text":"BRIL","page_number":33,"box":{"x":778,"y":842,"width":27,"height":6}},{"id":"06196b99-066c-4b9b-833d-7cf9a3c6bd69","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":863,"y":821,"width":39,"height":7}},{"id":"f99829d0-051d-4817-b1eb-c0dd5006b84c","block_type":"box","text":"Paid to","page_number":33,"box":{"x":863,"y":831,"width":40,"height":7}},{"id":"e9079a52-4796-4be6-8d8c-fa35467cb6d6","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":856,"y":841,"width":52,"height":8}},{"id":"a9d40f23-5704-49bf-8b98-2b3d421f492c","block_type":"box","text":"2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 667 $ 667","page_number":33,"box":{"x":69,"y":858,"width":839,"height":11}},{"id":"95d030c8-a072-44be-a884-25f0f0d80008","block_type":"box","text":"2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 783 $ 783","page_number":33,"box":{"x":69,"y":874,"width":840,"height":10}},{"id":"e65a2123-291d-454f-9e97-4569d102e8e5","block_type":"box","text":"2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,207 $3,207","page_number":33,"box":{"x":69,"y":889,"width":839,"height":11}},{"id":"530091b9-068d-448f-88f7-ff64effcdbc7","block_type":"box","text":"I-23","page_number":33,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"9b389aa4-d328-4feb-b9af-712558a2ded6","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3f79e10-51aa-42fd-9b22-edecd0b17a1c","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":34,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"a1038158-f173-4fc3-b23f-b0d189418b44","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plans. A significant amount of the fees collected by BRIL were paid to affiliates, for","page_number":34,"box":{"x":68,"y":60,"width":821,"height":11}},{"id":"f166a6a5-0fcf-4a6f-bce4-d9ff9908ae3e","block_type":"box","text":"providing shareholder servicing activities for Investor A Shares and Investor A1 Shares and for providing shareholder","page_number":34,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"7f172b1a-1374-4974-9e9b-249685a54883","block_type":"box","text":"servicing and distribution-related activities and services for Investor C Shares.","page_number":34,"box":{"x":69,"y":90,"width":556,"height":11}},{"id":"6f2d63b2-db39-4a09-b63c-706326b5aba6","block_type":"box","text":"Class Name","page_number":34,"box":{"x":69,"y":118,"width":68,"height":7}},{"id":"9752f12c-edba-457d-a918-0514689a7c66","block_type":"box","text":"Fees Paid to BRIL","page_number":34,"box":{"x":806,"y":118,"width":103,"height":7}},{"id":"8f50482f-21c6-42b0-a6d9-517804b66794","block_type":"box","text":"Investor A Shares .","page_number":34,"box":{"x":70,"y":136,"width":134,"height":9}},{"id":"34a41fae-2d83-4445-bfa1-b9090e9cf8bb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":34,"box":{"x":210,"y":135,"width":626,"height":11}},{"id":"b9044187-ca20-40da-9ad9-e47170b84a5c","block_type":"box","text":"337,431","page_number":34,"box":{"x":838,"y":136,"width":63,"height":10}},{"id":"201c85af-d123-4064-aa2c-74f25c57c7cd","block_type":"box","text":"Investor A1 Shares","page_number":34,"box":{"x":70,"y":151,"width":133,"height":9}},{"id":"83edfa02-6472-4417-ae6b-95c3d4aa57eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,560","page_number":34,"box":{"x":210,"y":150,"width":691,"height":12}},{"id":"22af662e-72a3-4e10-b991-c5752e1bb9fe","block_type":"box","text":"Investor C Shares . . .","page_number":34,"box":{"x":70,"y":166,"width":150,"height":9}},{"id":"b90e7521-8023-4ef7-932b-369bbd420f04","block_type":"box","text":".................................................................... $","page_number":34,"box":{"x":226,"y":166,"width":596,"height":10}},{"id":"033670a8-64d9-41d3-a932-35e88aa57bf7","block_type":"box","text":"249,511","page_number":34,"box":{"x":839,"y":166,"width":62,"height":11}},{"id":"5db80b08-e3d0-449c-a467-1e1b73edd859","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":34,"box":{"x":68,"y":198,"width":318,"height":11}},{"id":"4704332c-9bb6-476a-b974-5463fe0c5832","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares and Investor A1 Shares of","page_number":34,"box":{"x":101,"y":220,"width":798,"height":12}},{"id":"3e4734b9-c2a2-4750-81f5-41438acb8faa","block_type":"box","text":"the Fund, based on the value of the Fund’s Investor A Shares’ and Investor A1 Shares’ net assets and number of","page_number":34,"box":{"x":68,"y":235,"width":810,"height":11}},{"id":"b04fb0f9-735f-4815-9843-9afaba81f81a","block_type":"box","text":"Investor A Shares and Investor A1 Shares outstanding on May 31, 2026 is set forth below.","page_number":34,"box":{"x":70,"y":251,"width":647,"height":11}},{"id":"4935789b-e1f6-45be-a15a-eaff69062b93","block_type":"box","text":"Investor A","page_number":34,"box":{"x":700,"y":279,"width":58,"height":7}},{"id":"279bbcf8-2434-4c2e-b362-26f494d5def8","block_type":"box","text":"Shares","page_number":34,"box":{"x":709,"y":289,"width":39,"height":7}},{"id":"8672ce30-28ea-4703-ac46-79dfa4d7f472","block_type":"box","text":"Investor A1","page_number":34,"box":{"x":828,"y":279,"width":66,"height":7}},{"id":"f24a1d3e-1c41-4107-b223-c9d9f3ebe91b","block_type":"box","text":"Shares","page_number":34,"box":{"x":841,"y":289,"width":39,"height":7}},{"id":"5be1e41d-94aa-46b5-a220-5ee35a475239","block_type":"box","text":"Net Assets","page_number":34,"box":{"x":70,"y":307,"width":76,"height":9}},{"id":"7b742cef-b35c-4f51-aed3-783135020dc1","block_type":"box","text":".............................................................","page_number":34,"box":{"x":153,"y":314,"width":491,"height":2}},{"id":"b689a359-91a9-4526-a506-c8d88e100dba","block_type":"box","text":"$495,717,939 $12,065,818","page_number":34,"box":{"x":676,"y":306,"width":233,"height":11}},{"id":"7a7d615c-8910-4d00-9ff9-fee012163233","block_type":"box","text":"Number of Shares Outstanding","page_number":34,"box":{"x":70,"y":322,"width":219,"height":11}},{"id":"6ac5f1e3-abb3-426c-82c2-fa8f9e47b38d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,","page_number":34,"box":{"x":300,"y":322,"width":417,"height":10}},{"id":"4bdc0ea5-efc7-4270-af5f-c8093e13d711","block_type":"box","text":"669,532 1,159,919","page_number":34,"box":{"x":720,"y":322,"width":189,"height":10}},{"id":"d7270d5e-5285-4e0b-9386-4df61c3ebb14","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares","page_number":34,"box":{"x":70,"y":337,"width":478,"height":11}},{"id":"ffe658e5-241a-4910-bde2-07c45d7a0a8f","block_type":"box","text":"outstanding).","page_number":34,"box":{"x":79,"y":352,"width":92,"height":11}},{"id":"def0b392-b1bc-4133-981d-bb052f2f2184","block_type":"box","text":"..........................................................","page_number":34,"box":{"x":178,"y":359,"width":466,"height":1}},{"id":"5d0d5faa-28b5-4a27-ba44-fe4795f249b6","block_type":"box","text":"$10.40 $10.40","page_number":34,"box":{"x":730,"y":351,"width":179,"height":10}},{"id":"2b7f2911-f974-4d41-a7d7-40eb8cc51116","block_type":"box","text":"Sales Charge (for Investor A and Investor A1 Shares:","page_number":34,"box":{"x":69,"y":366,"width":375,"height":12}},{"id":"3a702319-3462-4a76-b58e-6b7774642dd0","block_type":"box","text":"4.25% and 1.00% of offering price; 4.44% and 1.01% of net asset value per","page_number":34,"box":{"x":79,"y":381,"width":543,"height":11}},{"id":"e87940ef-4f22-4239-87db-a9f866261be7","block_type":"box","text":"share, respectively)","page_number":34,"box":{"x":79,"y":396,"width":137,"height":11}},{"id":"15986f82-823d-4924-8d1b-f6e56621d1a0","block_type":"box","text":"1","page_number":34,"box":{"x":218,"y":396,"width":4,"height":4}},{"id":"69113d8a-afdd-44a6-810f-2b116105e8d8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.46 $0.11","page_number":34,"box":{"x":226,"y":395,"width":683,"height":10}},{"id":"aa93c684-64fc-497a-b73f-b978a158562e","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":69,"y":415,"width":575,"height":11}},{"id":"14acdf5f-057d-4c0b-b171-0b35937dd90d","block_type":"box","text":"$10.86 $10.51","page_number":34,"box":{"x":730,"y":414,"width":179,"height":11}},{"id":"9623d6e2-53a8-446d-9f5c-3962b7a8a205","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":447,"width":3,"height":4}},{"id":"580a127c-4afc-448d-8e85-9b353ec12a40","block_type":"box","text":"Assumes maximum sales charge applicable.","page_number":34,"box":{"x":93,"y":447,"width":253,"height":9}},{"id":"bb3776b8-584a-4b7d-958e-4fcf6b43cc25","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":34,"box":{"x":101,"y":468,"width":796,"height":11}},{"id":"28cef619-e501-44bd-98fe-739f42647b59","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":34,"box":{"x":69,"y":483,"width":833,"height":11}},{"id":"bd14e139-0def-4a62-ab02-9c6de27c38bd","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":34,"box":{"x":69,"y":498,"width":813,"height":11}},{"id":"c59b1905-3ed4-4268-acf8-4148d062a12e","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":34,"box":{"x":69,"y":513,"width":377,"height":12}},{"id":"563544ac-3bf4-46e7-a75a-4a5a0cba78bb","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":34,"box":{"x":68,"y":544,"width":302,"height":11}},{"id":"4e10779a-8874-4a66-8205-8c708a608abb","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":34,"box":{"x":102,"y":566,"width":609,"height":11}},{"id":"dad71706-8ec5-4a2f-90e2-f7ca65c931c4","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates, is set","page_number":34,"box":{"x":102,"y":589,"width":794,"height":11}},{"id":"70c09105-ad85-43ad-b784-04da9befebb5","block_type":"box","text":"forth in the following table:","page_number":34,"box":{"x":68,"y":604,"width":191,"height":11}},{"id":"f436541a-2d33-49db-94a4-c8c44f80cf3e","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":613,"y":632,"width":125,"height":9}},{"id":"0594885f-417a-44e1-9728-482bd14e9955","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":623,"y":642,"width":106,"height":8}},{"id":"895320a1-9975-45ae-8660-5cf4273ea698","block_type":"box","text":"Brokerage Commissions","page_number":34,"box":{"x":769,"y":632,"width":140,"height":9}},{"id":"2309b841-e92b-466b-bbd1-c14708c4525c","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":791,"y":642,"width":96,"height":8}},{"id":"5172cc98-619e-417a-be6f-29f972f078d1","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":34,"box":{"x":70,"y":660,"width":292,"height":11}},{"id":"9ed557d7-72ef-449e-a3dd-e5b29df92946","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,161 $0","page_number":34,"box":{"x":369,"y":659,"width":479,"height":12}},{"id":"181b0058-af3c-4136-a75b-57ab5db32c5f","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":34,"box":{"x":70,"y":675,"width":292,"height":11}},{"id":"f7565569-8c57-4b88-8a91-cf9a4a8eb33d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,549 $0","page_number":34,"box":{"x":369,"y":675,"width":479,"height":11}},{"id":"f15f00ce-d986-427e-b580-88969645326f","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":34,"box":{"x":70,"y":690,"width":292,"height":11}},{"id":"164e574c-f4ce-4917-a920-180efd4995cf","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":698,"width":213,"height":1}},{"id":"23adb565-0c66-4233-8859-0986c026db4e","block_type":"box","text":"$179,626 $0","page_number":34,"box":{"x":640,"y":690,"width":208,"height":11}},{"id":"0e250f8d-40f3-4422-864f-ef3f46cd593e","block_type":"box","text":"The decrease in brokerage commissions paid by the Fund in the fiscal year ended May 31, 2026 when compared","page_number":34,"box":{"x":101,"y":714,"width":807,"height":12}},{"id":"9c5df935-b208-4566-ac6e-6654e631e2ca","block_type":"box","text":"to the prior fiscal year was due to reduced trading activity in certain derivative instruments and a reduction in Fund","page_number":34,"box":{"x":68,"y":729,"width":817,"height":12}},{"id":"f1af259d-9819-4678-a868-293b980e586a","block_type":"box","text":"assets.","page_number":34,"box":{"x":69,"y":745,"width":51,"height":8}},{"id":"fb9786e2-0ec2-4408-b08b-0734bf22deea","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing third-party","page_number":34,"box":{"x":101,"y":767,"width":790,"height":11}},{"id":"9bc6b061-498b-4dc1-8807-22279761aaf1","block_type":"box","text":"research services, and the approximate dollar amount of the transactions involved for the fiscal year ended","page_number":34,"box":{"x":69,"y":782,"width":765,"height":11}},{"id":"e0f38b1c-80a2-4a70-b14c-040ae4899d4f","block_type":"box","text":"May 31, 2026. The provision of third-party research services was not necessarily a factor in the placement of all","page_number":34,"box":{"x":70,"y":797,"width":801,"height":12}},{"id":"a79da073-cef9-44eb-8b1f-f763fe5a08e4","block_type":"box","text":"brokerage business with such brokers.","page_number":34,"box":{"x":69,"y":813,"width":274,"height":11}},{"id":"114fae8a-425e-45b7-9c06-3cbda797a1b5","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":325,"y":841,"width":141,"height":7}},{"id":"22e0a86b-c1eb-46df-a86d-9d6a8a397f40","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":341,"y":851,"width":109,"height":7}},{"id":"bde66dc9-ac99-4db9-90c7-ab1b0c4e3bc9","block_type":"box","text":"Providing 28(e) Eligible","page_number":34,"box":{"x":327,"y":861,"width":136,"height":9}},{"id":"179504f1-6889-4dbb-aed5-2493a18e1261","block_type":"box","text":"Research Services","page_number":34,"box":{"x":342,"y":871,"width":107,"height":7}},{"id":"322e7a7b-4465-4a76-b83f-b78246e65722","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":528,"y":861,"width":124,"height":9}},{"id":"cf5e969f-0845-495f-8164-e5950f566599","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":527,"y":871,"width":126,"height":7}},{"id":"1a62c7fb-71d7-4b64-95cf-2d61274ea6d0","block_type":"box","text":"$0 $0","page_number":34,"box":{"x":386,"y":888,"width":213,"height":11}},{"id":"a3da0400-61ca-46d0-99f2-99ddece467e1","block_type":"box","text":"I-24","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"45fd5569-83aa-4811-838a-789722aa0ed2","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f37670c9-5c7f-4f6d-a34d-d7261846b99e","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":35,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"93e87faa-5ad7-4486-982e-d37a7fcd8acb","block_type":"box","text":"the Investment Company Act) whose shares were purchased during the fiscal year ended May 31, 2026.","page_number":35,"box":{"x":68,"y":60,"width":745,"height":11}},{"id":"b31e5c30-80f3-4c8a-a185-e1f1cf355393","block_type":"box","text":"Securities Lending","page_number":35,"box":{"x":68,"y":90,"width":135,"height":11}},{"id":"64d8ec72-6846-4df2-91e5-c3297c7ed1ae","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":35,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"3fc9f0ad-0485-45fa-a24c-a8b982337534","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":35,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"cb8c3c94-54fa-4473-9873-5f117c5f9f4a","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":35,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"2c00d5c9-3bc5-49f3-96fb-e57e7dc4d73a","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":35,"box":{"x":70,"y":158,"width":838,"height":11}},{"id":"5681b0c8-e806-43d8-8ea5-9e53bd0d6db1","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":35,"box":{"x":69,"y":173,"width":813,"height":11}},{"id":"b9e2095b-d28f-463c-8b36-04bf59526e17","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":35,"box":{"x":70,"y":188,"width":646,"height":12}},{"id":"b301db96-4957-4862-9ba7-c5bf9030dcb2","block_type":"box","text":"To the extent the Fund engages in securities lending, the Fund retains a portion of the securities lending income","page_number":35,"box":{"x":101,"y":211,"width":800,"height":11}},{"id":"4a461e62-af15-4a5d-a847-bd28b21d305d","block_type":"box","text":"and remits the remaining portion to BIM as compensation for its services as securities lending agent. Securities","page_number":35,"box":{"x":69,"y":226,"width":802,"height":11}},{"id":"2896f3b2-57e9-4536-8bfd-672103ed6f4c","block_type":"box","text":"lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and","page_number":35,"box":{"x":70,"y":241,"width":774,"height":11}},{"id":"1eb9b91b-92b6-49e9-a1b6-c8c946153585","block_type":"box","text":"excludes collateral investment fees as defined below), and any fees or other payments to and from borrowers of","page_number":35,"box":{"x":69,"y":256,"width":801,"height":11}},{"id":"e98a49f9-2b5a-4e17-a420-0c6453516723","block_type":"box","text":"securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund","page_number":35,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"1925b070-3ffb-493c-9d28-3fd97ffcf0f4","block_type":"box","text":"is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money","page_number":35,"box":{"x":70,"y":286,"width":834,"height":12}},{"id":"8fa616d6-5a26-4309-9666-aa8b529a3529","block_type":"box","text":"market fund managed by the Manager (the “collateral investment fees”); however, the securities lending agent has","page_number":35,"box":{"x":69,"y":302,"width":818,"height":11}},{"id":"536ffcbc-2da2-4fd4-9e1b-9720b70b0a38","block_type":"box","text":"agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral","page_number":35,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"297848e7-9ac6-47ef-bb02-daf364d83cc0","block_type":"box","text":"investment fees a Fund’s bears to an annual rate of 0.04%. Such money market fund shares will not be subject to a","page_number":35,"box":{"x":70,"y":332,"width":827,"height":11}},{"id":"72458367-a5d1-462b-abbe-ddb41e3f6496","block_type":"box","text":"sales load, redemption fee, distribution fee or service fee.","page_number":35,"box":{"x":69,"y":347,"width":414,"height":11}},{"id":"5503bb44-30a0-462e-bd9b-0bb70f1f7574","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":35,"box":{"x":101,"y":370,"width":776,"height":11}},{"id":"bf39cdf4-2d98-4b65-bd0e-620e72273de0","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":35,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"f2f2c514-0742-481f-b199-654d7e1f382d","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":35,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"910cc264-fdaa-47f5-8f83-2e837751ba66","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":35,"box":{"x":69,"y":415,"width":799,"height":11}},{"id":"ace8f2bf-482b-4e72-8db2-4921fdfa9ffc","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":35,"box":{"x":68,"y":430,"width":835,"height":11}},{"id":"f48f29c0-14f0-49c6-aaa2-13c130fd9211","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":35,"box":{"x":69,"y":445,"width":818,"height":12}},{"id":"2fa70a6d-813c-4e98-8909-1b0e3875ea0a","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":35,"box":{"x":68,"y":460,"width":789,"height":12}},{"id":"39fcf74a-e91f-46a1-899f-2a59ff3d41f7","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":35,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"26b5ee75-79e8-4c37-892e-cda9fbc855bf","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":35,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"02a9da76-567a-425f-b87e-06a40f4004c1","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":35,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"4e33411a-26e0-4291-97fa-c9bcd1159690","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":35,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"526fcaf9-e52c-4d25-8e1d-9ebef6d5e4bd","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":35,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"59f1dbbc-ef25-4364-a4f6-531cff930b4c","block_type":"box","text":"Fund’s returns on securities lending.","page_number":35,"box":{"x":70,"y":551,"width":258,"height":11}},{"id":"a1e4fe94-6246-4e74-bb9b-f970181c75f2","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":35,"box":{"x":102,"y":574,"width":774,"height":11}},{"id":"0567fa56-8c6f-4819-b9ee-0bcfdfbb4842","block_type":"box","text":"determination of the Fund’s asset class category (fixed income, domestic equity, international equity, or fund of","page_number":35,"box":{"x":69,"y":589,"width":796,"height":11}},{"id":"92b8f507-ed5f-4ffb-9ff8-fee821bb1487","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":35,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"77d6ffb1-4004-47da-a0b2-0535147f6429","block_type":"box","text":"Trust and BIM.","page_number":35,"box":{"x":68,"y":619,"width":103,"height":9}},{"id":"e8aaed40-a651-4d91-b26a-bab3bfe36e2c","block_type":"box","text":"Pursuant to the securities lending agreement: (i) if the Fund were to engage in securities lending, the Fund","page_number":35,"box":{"x":102,"y":642,"width":757,"height":11}},{"id":"5f85fdbe-fcf1-41a5-a255-43fb21f229d8","block_type":"box","text":"retains 82% of securities lending income (which excludes collateral investment fees), and (ii) this amount can never","page_number":35,"box":{"x":69,"y":657,"width":824,"height":11}},{"id":"10105e37-a91d-4c45-a64e-a36e6ce26985","block_type":"box","text":"be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":672,"width":639,"height":11}},{"id":"1868e7e7-5d71-4c6b-9e5d-244db30bd9e1","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":695,"width":753,"height":11}},{"id":"b5b1abdb-314b-4513-b07a-208edee643d7","block_type":"box","text":"earned across the BlackRock Fixed-Income Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":35,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"fdc5749c-f01b-4102-8a68-708dadc93317","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":725,"width":817,"height":11}},{"id":"231cb37b-0b35-42de-b7f2-49360bbf70c7","block_type":"box","text":"lending income as follows: (i) if the Fund were to engage in securities lending, 85% of securities lending income","page_number":35,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"2446c42e-3187-463a-be6b-02eab8e7eb23","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":35,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"ecc30c14-5ce2-48c2-ade0-60770a31661f","block_type":"box","text":"lending income plus collateral investment fees.","page_number":35,"box":{"x":70,"y":770,"width":334,"height":12}},{"id":"9a20a952-4a20-430b-8035-62c13a4cbd28","block_type":"box","text":"The Fund had no income and fees/compensation related to its securities lending activities during its most recent","page_number":35,"box":{"x":101,"y":793,"width":807,"height":11}},{"id":"6a380897-6632-49a7-91c9-5cba1e839323","block_type":"box","text":"fiscal year ended May 31, 2026.","page_number":35,"box":{"x":68,"y":808,"width":232,"height":11}},{"id":"f3fdad5e-d373-4414-8760-3dae7a71285a","block_type":"box","text":"I-25","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d7dbbc17-a4f5-459b-82f2-0739ef419007","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b804abbb-2770-4183-9d09-c3eb6914dd0c","block_type":"box","text":"VIII. Additional Information","page_number":36,"box":{"x":68,"y":45,"width":195,"height":9}},{"id":"8575e51e-7dcd-4218-a580-a93092aff93a","block_type":"box","text":"Description of Shares","page_number":36,"box":{"x":70,"y":75,"width":153,"height":11}},{"id":"372777b7-9847-45f6-8bfb-ac3f985ce7aa","block_type":"box","text":"The Trust is a business trust organized on August 14, 1986 under the laws of Massachusetts. Effective","page_number":36,"box":{"x":101,"y":98,"width":742,"height":11}},{"id":"8aaad0b7-859a-4210-9764-c82129051c0f","block_type":"box","text":"September 29, 2006, the Trust changed its name from Merrill Lynch Municipal Series Trust to BlackRock Municipal","page_number":36,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"83f93887-4faf-44e0-a0d2-5ce25d4c1ccc","block_type":"box","text":"Series Trust and the Fund changed its name from Merrill Lynch Municipal Intermediate Term Fund to BlackRock","page_number":36,"box":{"x":69,"y":128,"width":793,"height":11}},{"id":"918cb7b0-b1c1-406e-bfed-635c92191284","block_type":"box","text":"Intermediate Municipal Fund. Effective January 27, 2014, the Fund changed its name from BlackRock Intermediate","page_number":36,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"791555ab-52e3-49e3-88f6-8d2d0bf3057b","block_type":"box","text":"Municipal Fund to BlackRock Strategic Municipal Opportunities Fund. 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Additional copies of the Fund’s annual and semi-annual reports to shareholders","page_number":37,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"07ec1164-4cc0-4bc1-b7ae-d424561e12d9","block_type":"box","text":"and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be obtained at no","page_number":37,"box":{"x":69,"y":816,"width":795,"height":11}},{"id":"33aa56f1-c284-4ec8-b007-aa6d3b5b9fce","block_type":"box","text":"charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":37,"box":{"x":69,"y":831,"width":728,"height":12}},{"id":"45cf8cba-76f6-4ac9-9ef8-b51e70465297","block_type":"box","text":"I-27","page_number":37,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"73ede29e-6223-4c2e-b8a3-dafc18bdb74f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfb6fed6-e02d-401f-ab02-1238d5cc636a","block_type":"box","text":"PART II","page_number":38,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"e4e4d569-5e62-44f9-94df-924ef3a4afe8","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":38,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"3b86ada6-9d2b-4cb2-b1a4-fc15bc682386","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":38,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"1b78e7ef-802a-4320-95d9-c403e515f2e7","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":38,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"65523a2b-6f91-4cb9-914a-e82059da81b0","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":38,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"fab6f190-9b46-4951-80df-c8ef54ae7e8d","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":38,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"662a677a-ab30-488a-9ec2-b208e1faa3ab","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":38,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"552e827d-a647-4d1f-9f56-18c8455bd18f","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":38,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"28f2833a-ec13-43cc-8b0d-a7048bc8da95","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":38,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"2427cc65-c8a1-4c71-8c7c-b054d7b7ba20","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":38,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"d7b01a47-b5ed-4938-8306-2c27db8d06be","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":38,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"b5bcbd2d-d291-4cee-bd29-68d3f339cbfb","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":38,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"7578c585-e26d-480a-a4b5-7394bdeb4fb7","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":38,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"736ec2e6-58c5-4c35-bb90-f356927b41c6","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":38,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"283736c0-cbc7-4a56-b1aa-026af57f1a41","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":38,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"3c3c293b-f09e-4bdc-8391-1250c57bdcc6","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":38,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"013e7603-77bf-43a4-aac3-73245b4150cc","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":38,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"474b7150-9fe0-4a30-ada4-f634ed82bc72","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":38,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"b34e0bbe-d51e-4bd8-ac0f-98451639b706","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":38,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"62a435ac-79bc-4c61-8aab-89eb71a95ef7","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":38,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"87140bcc-c523-4c19-b3a6-c92bab4f6447","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":38,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"ab88ea38-c891-4924-be93-1bec8e3dee7c","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":38,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"a8bfb279-03e9-4766-bd0a-a8eace73cf77","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":38,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"77a5c027-5096-40d7-962a-dc0ddb38f135","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":38,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"560beb5f-85c5-4093-95ff-a1f85ef4275d","block_type":"box","text":"particular Fund.","page_number":38,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"a10f5dcf-1ced-4959-946a-df7698e8e595","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":38,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"aae47931-6d53-439d-af64-fc1b497e3b8e","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":38,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"8835230f-e801-409b-8a1d-90ddd9033d8f","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":38,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"d46b7476-3d19-42a3-9ef7-0cbddf910ba5","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":38,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"891039b9-afd4-42bc-9e0a-0146855aeced","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":38,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"9a698197-7089-4b03-b9b9-6ee166bce262","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":38,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"2d19ceae-8eef-40db-87a9-cc6ee5676778","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":38,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"0f660037-1f75-4d85-9874-27abd25fd0af","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":38,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"0a9325fe-b2a2-4aa9-a7ee-5ac3d9da0f44","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":38,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"5c5e8dc7-fb79-4054-99c0-aa308a4fc8a1","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":38,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"fee56e3e-69f3-4aef-9d21-6c10d9f8c616","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":38,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"0d047b61-2c45-40d8-a3fd-001e549b3204","block_type":"box","text":"Asset-Backed Securities.","page_number":38,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"4b9cf69f-4522-4289-9ff5-328d21f33c69","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":38,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"ee4afa7c-3f70-4ce7-a34e-40fd52b45722","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":38,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"65a32383-01e5-4288-b9a6-13ba908844d6","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":38,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"cf12a4bd-236a-4633-840f-89b9e0a97741","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":38,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"ef598fc3-d8ef-409f-93b1-42edc155a2c6","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":38,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"3154ff65-2dbc-4516-95af-b4f2d4c582f2","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":38,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"2310aa54-dd8b-42d9-81c2-8bf287d6a080","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":38,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"39031fe4-271f-4e36-9fb5-6de11ed084dd","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":38,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"08f13ca0-9f21-48cf-b1e1-afd3094a3dc6","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":38,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"83fe869d-35d1-4598-a85a-c28d85f98b4a","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":38,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"efcd1cb6-c3ae-4f79-9882-38b8a8ecf470","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":38,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"85058b8e-43c0-4c62-b80f-6b432c676fa5","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":38,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"f8aeb5c7-6043-4277-b17f-c660a3b8bc5b","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":38,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"8fa4942b-2102-4c3f-9747-8af01e8c473d","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":38,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"a2695151-0ff2-47b8-b9dc-9ad53f656b1b","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":38,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"94f5ae79-ad2f-4cb4-81d5-9f2e70bac786","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":38,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"fe90e875-360c-43f4-a5d3-f4780c95e913","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":38,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"72f93283-f94b-4e62-8004-bca79b2762b8","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":38,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"d9ddfedd-015f-416f-b282-110d95c80a20","block_type":"box","text":"II-1","page_number":38,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"94ada0ba-0fe8-4c95-b61d-ff0116dd00f8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9719b939-15ad-4be1-9a46-82d9f13e8845","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":39,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"02bfaed9-e3f3-4155-83da-5fcbf1064a82","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":39,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"2be8a218-2ee3-4388-a1b6-200e94dd0233","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":39,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"51b5ef66-9114-428f-b17a-a43ccf572151","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":39,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"977fc32f-936a-4abc-9963-370ce696fc27","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":39,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"07798869-2b24-4fd4-9f1d-3631d52ec309","block_type":"box","text":"Asset-Based Securities.","page_number":39,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"8e5b5f78-3beb-405c-916b-c74aa8f0fce3","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":39,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"5b90e30b-6aa2-4fef-9e14-56688f1c09d6","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"8537cecf-905e-4fc2-819f-5e5e8abef03b","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":39,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"7e13b27e-3f32-4203-ac20-831cb18e65ef","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":39,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"3e7af6ca-9933-4966-a901-e93be638190c","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":39,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"8956d2e2-9650-4185-ad53-eb80c42f71b1","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":39,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"ff7d6969-2502-4e17-800f-df794b74e8bb","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":39,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"2b0abab7-ae1f-46bb-83f9-93734e575117","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":39,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"b926af65-b845-4649-a8ad-0e02d64ed929","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":39,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"fe81cff1-9639-402a-86f8-6dab708b28ac","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":39,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"3f645694-a115-4a93-92d6-ad9c843f64cd","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":39,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"e648a485-4bb3-4e3c-896d-8a90fd3338eb","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":39,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"b367cf10-2c47-4d86-a05b-91e85e8dc0ae","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":39,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"254c8c9a-0df4-4a64-b77c-469d1c82ea97","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":39,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"bc1a46c3-f927-4678-ad4d-20565a92d20e","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":39,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"ee59028d-d8ca-4d98-99d0-29edf17b2f7f","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":39,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"31275050-3480-4bf1-9dbf-b38c84da0347","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":39,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"057472e1-b2d0-4934-a912-b9baab6b5c37","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":39,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"587d74b5-3b3b-420a-96fb-4f3ebd4bcf7c","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":39,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"9334e048-22fa-4b43-be03-e3f811917136","block_type":"box","text":"appreciation in the underlying asset.","page_number":39,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"51b14415-cd62-401f-b781-dc02e5cde067","block_type":"box","text":"Precious Metal-Related Securities.","page_number":39,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"1327bd33-7c5a-4ed1-9099-0880d0d13136","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":39,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"a9527464-f84d-4ea8-9e52-f9fc4994cb9b","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":39,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"06e0cbf0-eeaa-4ff9-b5ab-03b4315bfa2b","block_type":"box","text":"e.g.","page_number":39,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"fa0a3260-70a2-4dfa-8eba-acc759d2b29c","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":39,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"de50083b-ec3a-40ac-ac14-328af390f8ee","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":39,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"32056da0-f9d9-4ddf-8ab7-ae6b2c9d824a","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":39,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"c306f670-962c-4b40-833b-4cf48bcd896a","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":39,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"2f6bcea9-852e-463a-b5dd-01e4169f1691","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":39,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"b7170c24-f39e-48a4-aa1a-e96206528ae1","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":39,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"84608c66-aa98-4bb8-9e78-5b1c3d772592","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":39,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"c11160ab-8900-4c24-aa44-e45e2a16bf7e","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":39,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"93723351-9a73-41b5-8ab2-f0140266b08a","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":39,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"b45095b0-d5e9-439b-bb7d-c8fc7190d5ea","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":39,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"a4ae195a-c8b4-44cf-9a8d-8d133e83fc0c","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":39,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"3e71fdf3-edce-4ef7-833d-73d7e0ac2ca6","block_type":"box","text":"South African gold production.","page_number":39,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"626ab859-a317-4750-afa7-f44a3925334c","block_type":"box","text":"Borrowing and Leverage.","page_number":39,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"712ac10c-fb2d-441b-9348-6554349b5dbb","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":39,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"9422826a-c82e-47b3-8555-d4edf2ef732c","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":39,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"2434c8c3-be1f-4be6-b933-10c40991b9e4","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":39,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"fba03cf8-5e62-4f20-b356-60f0fc2cbc56","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":39,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"00cb3156-a589-4164-a2a8-01fc5033c6ae","block_type":"box","text":"other securities transactions.","page_number":39,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"9828baae-ebf2-4a82-9539-9e56dd2ea667","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":39,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"66976183-c3c8-4cb5-985d-7003dbdcc611","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":39,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"04694217-0a47-4bd9-98c9-0ec08d3280da","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":39,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"29450f46-852c-4e1c-b4fe-bbcba9819895","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":39,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"baa0234c-09a4-4f85-ac10-1c2c85e503eb","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":39,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"acb57218-92cb-47fd-b86b-6d106fc42f4f","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":39,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"278587e9-8f56-4ba4-966a-84cd0fdaf048","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":39,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"1ce96bdd-840f-498a-a2f2-5dd32d741e2e","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":39,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"d5d4b38f-f258-4c5d-9244-d58bcced36b0","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":39,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"6d98893f-4952-40fa-977f-78282ebe024b","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":39,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"01f490d0-2ef0-477d-a57d-61327b82ae5f","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":39,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"722f8618-a08b-4684-82e2-f2000b1441af","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":39,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"f708ee4f-d88e-46c2-9ed3-47000c0ac825","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":39,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"8d81dd54-23bc-4c56-9da4-73ec069b1a97","block_type":"box","text":"II-2","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"173b0a77-a3bd-46dc-b8d9-11736bcaf2bc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f78eb22-4bf2-4e9b-b7d1-ff2307f3d778","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":40,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"ec860b25-c984-42ab-bfa2-cc315004f035","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":40,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"570543ea-50ed-4359-b6c0-a1c1dbaf3c64","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":40,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"e836d34f-3e41-45c6-a034-26c0ff31386c","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":40,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"338fcc69-f37f-4c3f-ba50-7a4d2c158d55","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":40,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"34ca0639-e537-4553-92c6-d144136a9bc7","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":40,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"d391e012-86cc-42e1-8902-03a402422ab9","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":40,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"bc6ec400-05d7-43db-8c0e-7562cfcb41e0","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":40,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"3da218e4-d070-4eb7-80c6-b7da4f6f8f26","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":40,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"63d273de-58a3-4bd6-a4cf-d53b8cd9d285","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":40,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"0ef1fe53-b8b2-4c30-893f-3f5b142ffc7f","block_type":"box","text":"Cash Management.","page_number":40,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"a83340df-4927-40ea-8a53-94b425487d63","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":40,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"f2ae438a-e822-46a0-aa93-0bfe17f0a3cd","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"d03ba7d2-dbb1-4afa-bdc6-f0c04555c7b1","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":40,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"25a8df9f-bc3e-415e-9ea1-4dcab9a96ed8","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":40,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"78396d9f-1176-460a-ae3d-0306adc5572c","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":40,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"54f3630b-d44e-43b2-8c0e-8dcbe83a5759","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":40,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"ee04ff30-4956-44c4-b935-14916e94c9d4","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":40,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"81d33098-ae58-4539-9ab3-c65181f94d42","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":40,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"5390fb95-cb9c-4803-a133-17cf714b29d1","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":40,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"b9025ce8-b802-43bc-87f3-4308808b75cc","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":40,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"53709226-782b-4d0c-8ebe-9ea655a3e365","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":40,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"a324ecf3-d6bc-4005-a168-de8597f84d6d","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":40,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"bd9ead15-cee4-4cb3-afe9-1360f304dc69","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":40,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"c3eebe5c-f53b-41c6-8071-5a909450d081","block_type":"box","text":"Collateralized Debt Obligations.","page_number":40,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"4d245f8d-788e-414a-b8de-91ab73a14e6a","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":40,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"73693f85-3d65-458e-ad23-b12d96e53aef","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":40,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"ddf8ee61-e0b0-402b-97dc-86daac4eba9e","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":40,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"5add13d2-e2d6-4ff3-8403-a0e3e3cfb1dc","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":40,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"407cc08c-9fcb-418e-8037-5fd526ec2677","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":40,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"3d5a95ca-3140-4e80-8af0-1b8c2fe11430","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":40,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"17f583ff-a28b-4137-bed7-ff7726b0f101","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":40,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"20069463-65c8-42f1-944c-5e834f99fdbc","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":40,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"d6f95c2d-2467-49d6-95d4-d73c99bd7101","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":40,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"6517b73f-599a-4ed7-922d-1ea1deceabc2","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":40,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"00f0f5e5-6ba2-4800-a16b-64dd9a482d2b","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":40,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"8fff6408-7ce0-4a47-90a4-b297b3735d5e","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":40,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"1d8fa593-06c0-4286-928f-276f5effa823","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":40,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"34511afe-71e4-4852-8760-a1978c7cbdde","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":40,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"3afd0728-6eba-46b0-849e-a575503892c7","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":40,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"9af4a4d4-0937-45a4-b91b-4a04a20667d9","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":40,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"036103bb-00b6-4d66-a672-d8148c731d43","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":40,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"a1c748d8-9532-4af5-8d55-1373fe45eec9","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":40,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"0cdae809-caa9-4a4e-abed-076b8d5e62be","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":40,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"05a0c144-57fb-4050-84bf-d7e12bcb6deb","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":40,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"58ae4ddc-8947-457c-b81c-ea948f59fc5d","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":40,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"cbda6a1a-5f9b-4e9f-b3d5-2cddf969eef5","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":40,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"d50498e5-d68e-4635-a2ba-9cac6761980e","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":40,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"64d0c6a1-515b-46e5-a879-f37e2ee3d578","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":40,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"ae7002bd-8d8a-4677-8192-5e7fc6484317","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":40,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"a9763808-3a03-413e-befc-b014bcfe3f7a","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":40,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"2627e148-a39a-4293-8373-1a2d7c5e1cb2","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":40,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"2b33df05-0ebe-4072-8105-adc82a3ed728","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":40,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"9b4d814b-8dd1-45ae-8e72-9cb587a29f26","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":40,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"430fb582-128b-4d8e-a496-f922b676bb36","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":40,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"d4a32373-ed52-483e-bdf1-6757f86cbf9d","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":40,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"814b07c0-d305-40a2-9770-dd4d7456794b","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":40,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"e0905251-eb3f-4685-907e-143f593efb5b","block_type":"box","text":"II-3","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"14144b1e-fa9c-4fcf-ac32-5343407a0ef8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67a34d56-9bf2-46df-85c7-1b174e6e65c8","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":41,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"7105748c-24fc-4c6c-9b97-3f081535501f","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":41,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"04d61fec-7a0d-42bf-a8d6-9949f206a891","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":41,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"b23dff71-a17d-4716-b4c8-99bca288eb1f","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":41,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"d9273541-8f4d-4eaa-ba34-4936f4849175","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":41,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"be5f2fd3-5977-4b2e-924d-d03f56342279","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":41,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"e0840942-973f-494f-9b10-08024dfd6d67","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":41,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"7fb13a63-8edc-4864-9fda-a14832b4ea6e","block_type":"box","text":"Commercial Paper.","page_number":41,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"052330fa-a115-4f2e-a2bf-6a97a0733279","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":41,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"d4f923c1-0551-4733-b60d-b0a2289125f4","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":41,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"0749b39b-2439-46ae-a3f2-bbf37e572e1c","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":41,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"ac2c0f34-a980-4a3b-aefa-c84b68574a9f","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":41,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"ba00a876-3d55-40e2-a705-0085c78d97d3","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":41,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"ba5efcb3-0b23-4aab-9ea9-01591b7a4984","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":41,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"2952d83b-1b05-4401-bb57-884564e035f0","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":41,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"9990670f-c5b1-49b4-837b-63989ab79f8e","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":41,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"bdb1b346-c72f-4427-bc11-fbd212bf186b","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":41,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"2cf0e6e7-56dc-49fc-a8f6-4a94d33be307","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":41,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"74963a29-fcc2-4373-9e96-8cc261c62ace","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":41,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"a274eb07-15c2-4190-91b3-cda7b7470938","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":41,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"be08e0dc-c391-4ca4-ab57-2c8892b0d2be","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":41,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"2bfd92a6-16a7-4180-9fa7-de61a90e5cff","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":41,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"bec76fb8-683e-4b11-9835-4db0b64767fe","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":41,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"54b76674-b202-4a46-a239-8722f8df3f3d","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":41,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"15b7beda-6460-4b0e-a868-65c160183d22","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":41,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"fccfba21-d6e7-4ef6-ac68-32944e5cd28d","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":41,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"97aa4c16-e819-45ac-9043-a0168bb4e6ad","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":41,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"9d29260f-5d84-4f3b-8089-2c3b379aa005","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":41,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"46452ba0-0cc9-48d1-bd97-751d78d0d3d5","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":41,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"d825d26d-41de-4b2d-8231-0eec58daceb5","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":41,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"d4e8d82a-437c-487b-a96c-e44f67531bf9","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"c191c523-059d-4871-aa3f-3dbff38abce1","block_type":"box","text":"variable.","page_number":41,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"92795bbd-25a8-40d2-889b-c60a96c0cefe","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":41,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"269889e4-91bb-4d21-aca4-cdf6e6230626","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":41,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"2de00b58-77ed-435d-9deb-7e72bb328852","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":41,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"1c877361-b328-4f7a-a47b-e63962836519","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":41,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"6c3937a4-040e-4694-871d-8cbae5c52c28","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":41,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"461eb99b-3cfe-48f2-b247-e5db5a01d136","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":41,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"1e3c1599-d93b-420e-abd4-791a5fa41b6b","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":41,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"0ec08f0f-5c7a-40af-8537-49aedd934c03","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":41,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"14241350-d1b0-4021-831e-4fdef84044e8","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":41,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"b715b921-5a20-4367-9819-2817fec9695b","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":41,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"b9d90872-0424-41bf-a2c5-13c82d8ccc1b","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":41,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"7d7fa06c-451b-4ea3-8c4a-548b33e3e6b2","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":41,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"ace6b2bc-0e70-4798-88d1-6709a4a741fd","block_type":"box","text":"correlation with stocks and bonds.","page_number":41,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"4c1987c5-7e50-4380-90db-b79b8c91054b","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":41,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"e76ea566-233c-41ec-9ef0-f778e8d9184e","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":41,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"08a8273c-a28e-4c60-bf91-3b803ebb5703","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":41,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"8ff7f3d4-8f4d-406b-9755-f6bd7bda3a58","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":41,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"fb2e2991-63b3-4d84-8c12-5624c0f4e58e","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":41,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"2cb17a94-8e4e-43ce-8c33-14fe95502b81","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":41,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"d26a02ce-0755-463c-a430-3ca91258ef17","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":41,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"8285067f-1360-4e8e-a4df-c77598816cd8","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":41,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"df2157d9-93ca-408a-bda1-6476659a02dc","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":41,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"2b9fa940-c1e8-402b-af5f-a99e8d907e42","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":41,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"a65f747d-d46f-4c5b-8137-a97676923ead","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":41,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"b62fdb79-0ba6-4fc3-84e9-c521dd7a2d7d","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":41,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"e579c102-c344-42f8-bbbc-f151264691e2","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":41,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"4ba4ef44-b5e3-472f-a023-e97e7e79dff0","block_type":"box","text":"II-4","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2134006b-7803-42f7-85aa-f975c15c25bb","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d769ce6-976b-4c39-824c-910717a3352e","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":42,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"67495ddc-c5c5-48a8-8866-1d84ff8bfece","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":42,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"156b7a53-e03a-4f4f-9466-822c1cc5e74c","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":42,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"343754ce-0077-4084-8549-545ac2f01436","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":42,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"c9e57134-fd6f-4f33-9351-267158313879","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":42,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"bff8e425-d241-47d4-bff7-58e35fa96573","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":42,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"87c405d5-9b5c-45c7-90e2-f171188715fe","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":42,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"55efff87-0afc-46d1-a7e2-c1ae4a8febbe","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":42,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"c4cc196f-5b45-4f15-a2ec-be93a9020685","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":42,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"2e926327-f0b0-4a72-93c0-9f84531109ce","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":42,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"361a2797-a4b0-4599-a169-40ee8a1ef626","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":42,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"e2b26d7f-9231-461b-839e-3ddc80f57950","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":42,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"431f874b-4ad4-4618-9959-179583653476","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":42,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"e80e0756-869c-449a-9a16-3fb9dc423a98","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":42,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"2f6a51f7-3eba-47e4-b7b6-4b45837478e5","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":42,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"6cec92c6-6715-4412-8965-e5295b50852c","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":42,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"13d6d5d6-6bec-4a69-b4f4-55b6dc383f6d","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":42,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"c701c433-86da-4788-9aa6-caf8f0f35340","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":42,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"e20f4a5e-281a-4568-94a3-8d3c08f1a0d4","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":42,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"6b64d1bc-9880-4744-a3c7-481d9a122ff0","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":42,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"83bc4629-0b49-4977-a823-0f0447c5d7fa","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":42,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"77f64b65-0567-4b27-a2db-a593a5ad0ff7","block_type":"box","text":"the Manager believes are relevant.","page_number":42,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"24ae4270-4d37-48e4-8f9c-2de3a50c8c32","block_type":"box","text":"Limitations on Leverage.","page_number":42,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"003497d7-53ea-4979-8de4-3b095b513a4c","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":42,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"3ab9cceb-477d-4dc3-83da-13a3cfa51b18","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":42,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"efc35be0-30e0-4afd-b1b7-b85f5e2b6fbf","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":42,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"d0049540-8f66-4e7e-811e-17b5965fefc8","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":42,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"91fb16ff-6a06-4801-bdd7-eecb73d2389f","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":42,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"0f1916d6-0c0b-4c3f-8c10-7ef644f4597f","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":42,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"256fe483-ad93-41ce-92dd-9b2923feaae5","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":42,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"1c529be1-8c99-4ec4-8aff-312d902d93cc","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":42,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"d6457d27-c290-4c07-b40c-992bf21e106b","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":42,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"24330104-17f0-4bc0-b33a-9023aaeb0c50","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":42,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"ae78bf8f-ef62-48cd-a1f0-b249b5bad96e","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":42,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"92cd4665-9447-4f6b-acd2-00c699cf769a","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":42,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"132887bd-5a50-4b97-8b88-0567240408cc","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":42,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"54819e7a-8edc-487e-ae68-7574404c7d8c","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":42,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"d485f917-5d2e-4d01-a1d7-e9fabc4b9912","block_type":"box","text":"Counterpar ty Risk.","page_number":42,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"2e657eb8-0670-4afc-9358-dec697a67ea8","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":42,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"1ee35c8e-7218-4063-ae2b-f187e9825dd8","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":42,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"36ba98eb-858c-4cca-8960-5b0371c437ac","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":42,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"09d659fe-cb53-4fd6-8952-c37157c87c21","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":42,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"927401f2-b8ad-49f6-b443-00fd426ebcce","block_type":"box","text":"e.g.","page_number":42,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"5d688d78-9bca-461b-a316-cf3ac8d4d184","block_type":"box","text":",","page_number":42,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"7d57bf95-e68c-430c-be5b-56192f920ff2","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":42,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"0f53778d-4212-4fa9-8a8d-9a680e55dd26","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":42,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"afc92258-90f1-425d-8a47-f492f4435192","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":42,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"e07ac904-482b-4096-aca5-aa5335b3534d","block_type":"box","text":"obligations under the structured note.","page_number":42,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"1688b3fd-dde7-4c86-a488-fc14f27d4c34","block_type":"box","text":"Convertible Securities.","page_number":42,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"0ea33ce9-7e9a-4588-9997-9b5fbb735d75","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":42,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"aba58ada-40a4-4896-a678-6a3c2d4e0684","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":42,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"1be86d37-31d0-4ad9-b6d3-ffc8380b7773","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":42,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"2a5dec41-2c03-42bf-88eb-689d7ebc99ea","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":42,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"afdb6144-4697-4c5d-9074-0d80d85e04cb","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":42,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"be839265-35d9-43c2-9e6a-b8e365b7c873","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":42,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"535cbf73-10d0-4504-9c28-a83a8ddebdd8","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":42,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"63aa615e-cf87-4835-804a-5a40ebfeaedf","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":42,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"09a3c39b-831c-417b-bae3-bb922a3cb0b4","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":42,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"1b89f3b8-241e-4d54-8fea-792493d333be","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":42,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"0ddaec10-3fbe-4239-b7e3-4307055992f2","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":42,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"994974b0-9cfd-498d-93fd-6c723a75d1d6","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":42,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"68b4b0dc-acee-40b0-bc2d-af6abe6264e1","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":42,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"00beb9aa-c0de-4de5-8085-7456a078c687","block_type":"box","text":"II-5","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f5a76ca9-4ba4-4f41-a73b-98a52f865ae1","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"456efe9a-fbf8-42b6-9de0-6cd6914c1497","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":43,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"ad22ce10-7ca1-46ff-bccc-4aa41fc9305c","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":43,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"613d0c68-4a0e-4752-8464-4309d09a6dea","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":43,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"af8d8a11-38f6-4239-ace0-b5519c854fa5","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":43,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"c1ed5bd6-fa31-46c8-ab0c-7f2308b6002b","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":43,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"f71a9c07-531d-44af-b615-90c42c197b3e","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":43,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"fe93aacc-c850-46fe-a9f0-0ed24a6b369e","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":43,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"ab01eda4-73cd-4abd-9aa4-ffc5ed85bea7","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":43,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"fcf5aedb-cf70-4c1e-a625-55ba72c8fb94","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":43,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"9542a88b-55fd-49f6-a013-2065c4848ac3","block_type":"box","text":"things.","page_number":43,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"6bd0baaf-4400-4e87-9ea5-7e4c1de8e8ad","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":43,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"cad78dc0-df0a-426c-9d9d-013606283fd3","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":43,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"a80df27b-ee05-4378-9e76-497178bd53c3","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":43,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"9689952a-16d8-4bb2-8ac6-f43dc22d224b","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":43,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"231a07ae-9e29-428c-a782-9c2be1e39723","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":43,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"7d94bf1c-b0f2-4405-9462-aa152ea4c5e1","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":43,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"16968cec-bc72-4464-935e-0053d7063cc7","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":43,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"02961c57-f582-49e2-a4ef-dd332f82aef6","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":43,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"f9dd3711-98a3-497f-98e6-78dd322c14ba","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":43,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"227245a7-45f9-49a2-ad52-b2b886a83b58","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":43,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"e8a6faf0-df46-4dcd-892e-316e492e47a7","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":43,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"90644266-3a4f-4a39-a439-b706a4f6f33a","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":43,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"ceaca88a-ce6c-4c6a-af70-d01fa09487c5","block_type":"box","text":"i.e.","page_number":43,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"c542ac0b-0ee4-4da0-8b41-bf73a519849d","block_type":"box","text":", strictly on the basis of its yield) is","page_number":43,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"c7582783-6c43-4a29-aea5-2b65d2d249fa","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":43,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"7fbd84ed-fb34-4040-8bdc-150c1c8bd785","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":43,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"dd9f27df-8026-40e4-b0e4-abdb732a4144","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":43,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"b7b24ff9-73a4-48a8-ba3d-226ec5f75dee","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":43,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"4ca2f6be-4db0-4846-8bb7-625242de4aaf","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":43,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"36bf4444-9ffa-40e0-b03d-e224f8f50b40","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":43,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"cef1f8cd-d169-406c-afc4-d5a97bb854c3","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":43,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"3effeca5-51d4-4a9c-808c-5c34f57e25f2","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":43,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"231591bc-39c3-4333-9dba-23b7f74ad7a9","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":43,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"3a64b8fb-a65f-4522-9e84-8900704d34aa","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":43,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"a68ebfec-7145-47f6-9571-1802610143de","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":43,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"04e05072-ce0d-4667-9eb1-51a6223135db","block_type":"box","text":"than the securities’ investment value.","page_number":43,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"70327aa7-6115-457c-8503-0be5d3dcfd24","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":43,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"115dc3ae-d809-49eb-b3e2-18682afbf20b","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":43,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"fb18fbf3-6898-4090-8335-713abbf239dc","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":43,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"73645258-a90c-4944-96b8-560ece0c72bf","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":43,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"1424815b-4d56-4c5e-82de-b9ce902b91e7","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":43,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"f6c94968-709f-4996-914a-a097de0b66e8","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":43,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8f786d24-ba3f-4726-b389-6af0b78145cf","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":43,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"7d70435d-4b76-458e-8253-5db57f46b6d4","block_type":"box","text":"security under certain circumstances.","page_number":43,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"8215f9d8-40f6-4f7a-a8ee-035ca3d06cea","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":43,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"c1ece44c-6050-499b-8258-a9af1b40430d","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":43,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"e87b4912-6e30-48bc-8d77-e61e47d5c352","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":43,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"04f53af4-d024-42ea-8c4a-40aa94605af4","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":43,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"48378547-59a2-4ef9-b164-81e5b32636d5","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":43,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"e8a86890-87a5-4632-aa22-372a44883fd2","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":43,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"ddeec804-d439-4eb8-a8ac-a6bbceef4394","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":43,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"2e447be4-20a0-4e62-af0b-460c43dfc53e","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":43,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"1a935ad1-6fd6-454a-9294-8116a18b94a9","block_type":"box","text":"i.e.","page_number":43,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"8b39128a-4229-465d-a335-f36127a98877","block_type":"box","text":", fixed-income (“fixed","page_number":43,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"322ac098-8933-41c3-991b-5bcb71f726a7","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":43,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"e7a7abbf-f686-41bb-aff0-7ab7baedeb0c","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":43,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"50b693c5-cc55-4855-92f2-c1ae6ef60065","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":43,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"17c9ce3d-cca9-437d-a55d-da7911043fa7","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":43,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"d0019359-ca0c-4973-adda-e093eabd4334","block_type":"box","text":"II-6","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cda1e446-e65d-4b41-a5ba-1d678ebf4a45","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be625731-992c-4d4c-9ce4-2d8ce12e81d5","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":44,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"2d2f7430-0d2b-4dd9-a2c7-0f207d1921d1","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":44,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"fe736514-57fd-493a-bc32-d24f4f60d0b7","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":44,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"0ab88c58-4f1d-481d-9d52-2b56ab92cc97","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":44,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"f459bc3d-26ad-460a-a72a-d959ddd0cbe0","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":44,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"c688fd18-56ba-43c8-ad74-33d609fd1fcf","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":44,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"98a7525f-9f7c-408c-a287-b6c3c22f5954","block_type":"box","text":"component.","page_number":44,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"da77a892-aa39-4294-806a-d974aa3a4c10","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":44,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"6a1068ee-fc0e-4ea2-9e28-0d879b824d94","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":44,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"4102b51a-692a-461a-bb4f-46739ee10d56","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":44,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"701ba8ec-bd57-444b-a403-1c67503944b7","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":44,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"b94e7a2e-54b0-4819-a820-8e8735a87a94","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":44,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"078eb4a0-9214-4f01-995f-c9aa931c9023","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":44,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"5057bc8b-cc0a-48ae-ba2d-de734819488c","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":44,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"d070af6e-2f90-4fc1-a2dc-48212725b67d","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":44,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"10a2a3a3-944e-4186-b31b-bc05fd5663d7","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":44,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"71927106-ade0-497b-92a7-887cd5248d6f","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":44,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"77f00cb1-974f-45b4-927a-fcd8d98f3a45","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":44,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"4e06d21b-f248-48d9-b40b-b14268056f07","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":44,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"e98dd7d4-f229-4230-b410-656a767e0ee8","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":44,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"42d1525a-7b09-4fab-a7ca-c240a39ea474","block_type":"box","text":"favorable market conditions.","page_number":44,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"850910ba-ca76-416f-93cb-18906c325047","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":44,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"442b82cd-4197-487e-98b7-3552269051d9","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":44,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"631f6a5d-e920-4065-9a4e-7aba4c858963","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":44,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"7a8005ac-4e26-41d4-946c-0c003f1d1f2a","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":44,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"26cc4a7b-2dee-4292-903c-1f3a867566f7","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":44,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"2ea32349-c902-4cc2-a357-d9e8ca40cd8a","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":44,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"4dc204ae-f179-472f-b9e0-f254c5458f4e","block_type":"box","text":"Corporate Loans.","page_number":44,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"8db02868-998c-41a3-99ac-e4c47a870711","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":44,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"51e9aa55-7e5c-4d7e-8e31-c43d171c535c","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":44,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"f9934120-928d-4f11-80aa-61523c481a4e","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":44,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"35ada985-6e69-473d-8658-7039a7364f94","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":44,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"dfd8dc89-721f-48a1-8c5c-8a3018146d79","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":44,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"e0c877d9-9055-47bb-915a-e334ddbf94b1","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":44,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"5ca5ed39-633b-4bab-8aae-0a7ffd018ac0","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":44,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"5bc7b32e-94c5-4031-876f-7ee121d3a43e","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":44,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"5b9eab7c-dc1e-453b-be93-fbc20f6768a1","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":44,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ce2d9893-fdca-49f8-b921-b359d7d15d67","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":44,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"bd47d106-1b7b-4dc4-926e-96c9093eeccf","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":44,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"fd6ff357-3b00-4c16-976e-fd09ada0eec2","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":44,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"1d19d5be-640e-411a-beb9-9be86f897e5b","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":44,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"a57a4d10-553a-49f8-bc51-5eeb0a11fed3","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":44,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"c53ff224-03e2-412f-8d3b-179b7f4ca697","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":44,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"42401e6a-f985-4da3-a749-abbee5b31e82","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":44,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"06c3d5bd-f508-44a8-b281-b7beb46d74b1","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":44,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"3ae8d006-00dc-43a9-a862-9ee03177f831","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":44,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"7a24540b-539c-4192-8320-790614a91421","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":44,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"d7600bfb-326a-44dc-a692-7d61f405ae05","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":44,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"5cab4cbe-1cd6-4f26-9fea-fa32cc6aef0a","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":44,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"a6806df6-9b30-4629-b053-d4b2e28c80dd","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":44,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"50cc9d2e-a4ba-4be1-ab10-d2313e0ee178","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":44,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"b45091b3-273e-4440-8518-f518cab7dcda","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":44,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"5d00e410-e77c-4ec6-b35d-a6687326bb4b","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":44,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"d71fd3ed-1a45-4c1f-be72-fe279ef41a62","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":44,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"4e62a7ea-d8d3-4fca-9150-86a3d7092f16","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":44,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"51992513-423d-408a-9bbe-5e00a863a1d8","block_type":"box","text":"of the borrower.","page_number":44,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"073b7200-681a-472f-aca3-f7fcb48a3f8e","block_type":"box","text":"II-7","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ad9b8c3c-c236-4a44-a04a-c387171c7c78","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95bc26a5-28d5-4a18-8eec-77bb5b0cbf04","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":45,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"623b7a83-f93e-4ad3-aca4-b5b21286bfd5","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":45,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"bb2c6198-fc0a-4beb-a640-57cb0e068f65","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":45,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"3d28fa4b-57ce-492d-af68-752b9f2315dd","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":45,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"69ddd19a-6180-4a1a-9881-770a2641ed0e","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":45,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"98a43b16-38b8-4153-94af-38e0673bdb06","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":45,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"120a061d-f649-4dab-ba0c-270998c96c54","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"8c90068a-775d-4b99-bab0-567372153a5e","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":45,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"7cc1e74b-1a2a-4e7b-adc1-864e16b0b795","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":45,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"d5fa8be4-e0ff-40a0-9f78-456c759c0342","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":45,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"5a1604c3-c7b3-4c83-b878-d5897e226f30","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":45,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"45e27e57-5b72-4bd3-9c42-a0df43cf7fdb","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":45,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"8a53fe12-6d64-4cf8-b93c-3fdf842adfb0","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":45,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"c3184ec0-905d-475a-9e27-58d8ea94e2bd","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":45,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"ea037a75-6269-4c12-a5c0-8a9913c6fb70","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":45,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"a23c37f4-3be0-498d-964c-cf03033442dc","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":45,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"ffe0ae25-9a71-4b18-b75b-57dd79b0b087","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":45,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"3fbce177-d55b-4852-87a6-e3a17c218edb","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":45,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"f6741cdd-0d59-4462-9f1a-00f37cae9e82","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":45,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"a1a6bb19-8505-4dda-9fc9-0f4ae3b1dd63","block_type":"box","text":"state law.","page_number":45,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"8d3dcff0-ad25-418c-9d83-f69b91b38b0f","block_type":"box","text":"Direct Lending.","page_number":45,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"39bb67a4-a9af-44e5-b60e-8750ab188c73","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":45,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"f456535c-2956-4b2e-9f3b-51bde2062568","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":45,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"c7915809-ae96-41da-8dad-6499c28b28a1","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":45,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"77671a29-48b1-4a62-99f9-ec4c7274f763","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":45,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"15cd9ed2-d1a2-412e-b1f0-ed40841db538","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":45,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"58a69eeb-78e7-4c1b-93b0-5c27025e1022","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":45,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"a0a7005e-079b-4b63-b820-1e13ae3300f0","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":45,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"0494841a-b446-4a9a-a594-e321a6adbb98","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":45,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"683aea89-a3ed-4731-b20c-69bc668d815d","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":45,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"9224d427-1be2-4475-a11b-1e65894eaed2","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":45,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"4a165783-a3a2-4798-aa06-1fba70e234d4","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":45,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"67eaaa62-2722-4d0b-8b94-fdf4333241bd","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":45,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"4f205016-8430-41df-9dc9-3a096b7c8c0a","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":45,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"25a966b9-0cc0-4282-ab61-238d6d677cd7","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":45,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"848adcc6-6f59-4cc4-866f-e9062db1f733","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":45,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"ec9b7807-5d58-4d7f-b994-f6294a702fa8","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":45,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"66a62ddf-a6ab-4eae-b7ca-1e604bfbe0ea","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":45,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"f97a8481-a553-442b-a7c3-921fb60c2b46","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":45,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"155db2f1-ca12-42d2-93d2-944a26e8f4df","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":45,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"d4442d6a-203f-4708-8fb7-7c7780dc1db7","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":45,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"e50d5756-bdf1-4670-8d14-b446ead565b8","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":45,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"a212f107-7427-498c-9612-1e88dff13830","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":45,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"360b1645-bb86-4b2d-a33a-c6b7dd9eb732","block_type":"box","text":"Credit Linked Securities.","page_number":45,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"8207868e-9dd4-4298-a5d6-4d6a93dbd718","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":45,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"fa4f48c2-dae1-442e-afc6-a6d55710d744","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":45,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"c9c2b06f-ac59-4eb5-a4ac-9e46c15fa028","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":45,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"dc147070-81cb-4d97-8a69-a088d2ec047f","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":45,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"212c96a5-8e21-4810-909b-6e11d7ef26c6","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":45,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"82dc8109-fecf-438c-ac71-46e6de6b5336","block_type":"box","text":"traditional income producing securities are not available.","page_number":45,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"2de72da2-7f08-432a-bb31-ae91ab35f4c4","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":45,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"6b1530d5-6d00-4346-bc4f-d97689adfd4e","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":45,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"ba51fec9-b3aa-4c0f-9995-e4f7824e0a33","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":45,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"391ff10b-151d-4b28-aeb4-9b09568789da","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":45,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"ca1347fb-8b26-483d-941d-39ae13239187","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":45,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"52a94fb7-434c-475b-ab32-5095c6c397c3","block_type":"box","text":"II-8","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"42e82f22-0a7f-4c05-a072-51b2af86b964","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a7d324e-f809-459a-9ddb-3689325d47a3","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":46,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"eabae404-00a9-4a23-baf1-1211ccd89b1e","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a045c8c8-253a-4239-bcb7-41a1a0f25b45","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":46,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"906ff9c6-dd1f-45e7-8e39-93700d376f7b","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":46,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"271fda8a-3790-4356-91ec-4c60056d43d1","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":46,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"a44122eb-898f-4a97-88bd-ce4cf534354f","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":46,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"1130c966-0640-42f3-99b7-bb234a1039d9","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":46,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"5b8931fc-9b82-4d61-9593-0940c6c3214a","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":46,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"5d3fc5dc-6a6d-487d-b7fc-afbe0aca3185","block_type":"box","text":"investments.","page_number":46,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"7e6746f9-e78d-4742-b268-cd963e390630","block_type":"box","text":"Debt Securities.","page_number":46,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"27e7daaa-aece-4d18-bc98-94bb431f4ac1","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":46,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"3f2bccc7-551d-4aee-9c42-1e0e70d643e4","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":46,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"344cd8a1-7c81-48ed-89c3-96352fa27f40","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":46,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"48af66fe-f9b6-4959-9edb-57537538383e","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"e3b6dd87-9a25-4e46-8624-31df297c1ba3","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":46,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"8c172ec1-21cd-4c1a-8d5d-8b9002962a73","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":46,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"0ae484e3-ffc5-4a68-8a99-2de874d8c870","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":46,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"640d41ae-b81f-423e-9126-b4d4d30c1a53","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":46,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"b5329619-8e4d-4eda-9dee-df9ae3e28eac","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"03ce0c12-d854-444b-908d-6b9fad327445","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":46,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"dae7ac44-ed6d-40a9-a2a9-6651f72c7b41","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":46,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"88e6b8b6-8263-47b6-ac0b-d58b43cdf041","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":46,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"0247b74c-64aa-479e-987a-3e65d627b73c","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":46,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"716d55e3-fa98-43db-b1ce-a909e2384f40","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":46,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"8e9ff80e-a1b7-451c-8498-82d5505d35c2","block_type":"box","text":"lose value. This is known as extension risk.","page_number":46,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"52b12300-9321-4421-a883-9c3f20da6ef3","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":46,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"d6d2ecb6-0545-4010-a279-112b54ccaf0e","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":46,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"3fbbc73b-3947-41ce-ad01-d31307f8f685","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":46,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"c938a355-2d37-4549-83a5-6ee920b989aa","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":46,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"2ca7794d-c760-4c73-bfd8-8aa2db3f8f4c","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":46,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"1830927d-c6ca-4667-8638-2e1938bfa9dc","block_type":"box","text":"Floating and Variable Rate Securities","page_number":46,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"d131b8f4-8fc1-4595-8a2e-241160071b54","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":46,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"92542cd0-268a-4d1e-a41a-e26e9b378b52","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":46,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"05b62748-559d-407e-9dd9-8e4725440c2b","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":46,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"ceed9a33-9798-4b7c-ba88-7465f52e79a4","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":46,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"bc91b2ad-c788-4433-99ed-b39dfba412ab","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":46,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"e4adf2cc-5ca2-4c6e-a40a-dafc926fb9b4","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":46,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"5c11d0d6-cac3-4afe-86a1-7dc71a37bb60","block_type":"box","text":"market interest rates.","page_number":46,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"08a40391-890d-42f2-8e02-963f2018a713","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":46,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"9c24d25a-af99-4aa0-91f4-107ec4d759a7","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":46,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"3f588cc2-7080-4061-8052-05784bc9d8f6","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":46,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"72da4876-e03f-4190-bed6-81c84342a482","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"2303c4dc-153b-46a3-928c-445c21acd1fc","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":46,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"1ea96e55-2201-42e6-bb14-9f272f2aafe7","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":46,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"34d4338e-a052-4e40-9301-3ef54a62e597","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":46,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"9749d780-766d-47a5-91bb-428597f38bd3","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":46,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"065ce32c-9bdb-4e22-9a29-4db0efb25ba6","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":46,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"ee60b9ce-4331-4c5c-9f20-4603b64c5591","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":46,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"c9645d5e-844d-4624-b948-f5f8fa637c9b","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":46,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"65126879-6897-4ac3-91fe-f838dbee5598","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":46,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"479828ff-f88c-4a45-93b7-ff10103b4e71","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":46,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"8c8e14e9-f6df-4b13-afcb-3a6e1f3d150d","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":46,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"f270ba61-d13b-4aa1-b1dc-840e72c648d8","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":46,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"facb8551-d793-4cc4-a89e-f3ea2374061f","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":46,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"a97111d3-fae8-44c7-9b01-4a78201afb2c","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":46,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"fd002cf2-03fc-4105-a2dc-356dfa336bcc","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":46,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"5026e076-47f2-42d5-8919-cde74d5fdfee","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":46,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"7dc53526-9b38-4606-8a5e-e1568ba97343","block_type":"box","text":"II-9","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"90655776-b7be-403c-ae6f-4dcedcbabd7a","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cf39235-1b9d-456f-a086-1109063caf10","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":47,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b3f80522-1dc6-4b16-a14a-f53675699485","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":47,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"23d5ce47-8946-402e-85c9-ed19975a365e","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":47,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"fdab50b2-e9ec-4ce1-bfda-939e12aa56d6","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":47,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"02042f1c-9fb8-4850-bfd7-60afdf46717d","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":47,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"2cd2365b-e534-479b-8765-e2ec69f3c584","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":47,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"e6595b67-774b-43ab-a845-8f2f35608858","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":47,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"a7a9644e-9399-442c-a48f-e3da86094e71","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":47,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"2bb326b4-fb69-4490-856b-c5d570377cad","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":47,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"4506bb71-a18c-4c26-98ff-7b1da9b71eda","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":47,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"2a71c226-b10e-4291-be17-9b59ad9abdc2","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":47,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"aef6ed12-e23b-40c1-94b9-8084e279f1ed","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":47,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"14f750aa-693b-4970-9345-6ed7c6a65f8f","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":47,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"558b0165-64a8-4279-83fd-a29485c10b6e","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":47,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"883f7f5f-dbfa-4223-8910-b84f9d1895ca","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":47,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"bb6a3cec-7091-4be2-a913-d8612864c45c","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":47,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"3c4fd315-1455-4be7-b54a-8e5ee43f13b9","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":47,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"dce36502-53a5-43a4-bd9b-10d7be293ef0","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":47,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"12742ca1-04c2-40e2-a82f-7ca8bb050123","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":47,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"8d7ef61b-33ec-4c18-96c0-bde1d2910c33","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":47,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"8e463633-3ac9-4b72-9e3d-4c6c91ccd855","block_type":"box","text":"United States.","page_number":47,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"2e884d94-ea25-4f38-837c-e29ce55a0589","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":47,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"a6c39a6a-60e6-43da-95e4-1593778d9fa7","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":47,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"d43b61cf-fbc2-4adc-9177-53f4d2cf1be1","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":47,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"995549e6-f255-4fed-991c-d8b3642df6d3","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":47,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"cb70f279-7057-4f59-acf1-34d741c8cb02","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":47,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"30f5fa4b-9f21-4c72-8492-644052108d9a","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":47,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"a156bb5b-7afe-49d0-9dda-909d403dca8e","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":47,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"d86cc368-0f07-4f02-8dba-43803ada348f","block_type":"box","text":"i.e.","page_number":47,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"f43d34e7-1fe0-4eb0-bcc8-7f57c2488740","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":47,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"a29858e3-c2a5-4cf0-8fc4-98d3bddba9ba","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":47,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"c84f7b2d-38e3-4763-8b9b-006b5f5d4812","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":47,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"eb73e0e3-fcea-4aa0-a632-4632ebc20d37","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":47,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"20f0a8e5-c358-480f-a59a-ef574c1c2c74","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":47,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"5cc156b3-104c-4669-bc38-4c260e956455","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":47,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"fee68065-ca84-44be-bd45-52504dbd91e6","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":47,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"f2a84681-107f-4734-ab25-f995143aa4f0","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":47,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"54b4d53d-6162-4ea2-896a-3e8ff62d5439","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":47,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"e135c3bc-6882-4932-81fc-26fef42ad070","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":47,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"97e1fdfd-7a61-4c74-91c7-b6b5231a040a","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":47,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"2b5a498b-f80f-4f0c-a3f5-6899b424b213","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"eac8303c-2dc1-4960-a57b-9809336908b4","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":47,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"cf96a537-d653-43a5-ae0a-abfe1dc4a4ea","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":47,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"113004c3-7627-4737-9e5d-d94a013a02e6","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":47,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"4c5a8a45-9540-46e6-b33b-23fefe2c5f2f","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":47,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c3baa8e7-1e2e-45e9-8236-f9d8bec1bbfe","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":47,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"28b22f8d-cac4-4f31-91d9-879cf8585a00","block_type":"box","text":"risk than higher rated securities.","page_number":47,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"3188f557-85b0-4308-ab20-d7c889f07618","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":47,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"5b49c835-b40b-42a9-8b00-2d504e8f1110","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"06ffca54-b32a-49f9-91de-8c3753189dad","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":47,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"11e39df2-5267-484e-9b70-0d35147d3343","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":47,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"32ea8ee4-e718-404d-96b8-1c865bc20fa5","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":47,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"431ae634-da67-4c51-990d-e088ce5d7b76","block_type":"box","text":"unavailability of additional financing.","page_number":47,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"464bf791-41ab-4f1f-b4f5-ef5589acae5c","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"b3c649db-a3c1-4ffa-ac90-3a32bfe7ae32","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":47,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a7a16ec9-d628-45a9-a712-d2e8f5e01a62","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":47,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"cb60d657-23c8-46a3-a014-f9b69d388ed9","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":47,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"59937364-16f9-4916-a03e-c364c2d746d9","block_type":"box","text":"II-10","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1acd1092-2869-4a65-8c6c-df9a559aac3f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b60b05aa-f55b-4112-b223-d91ecec6c46a","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":48,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"20d20168-1f01-4e86-a365-a41264b47f9b","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":48,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"471ee70a-0bf9-4b8c-82a1-18c1ed2117e7","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"df3ce662-f2e8-4654-a848-d73eee8f5a7f","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":48,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"f23c0e94-416b-4f6a-9b55-c882042be148","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":48,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"d678ee7a-b5eb-47b5-8370-25025bb70615","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":48,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"629b51b6-25a8-4a9b-a1fe-3c536a02e342","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":48,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"6e870ce7-d90b-44c3-87e7-445a683348a9","block_type":"box","text":"investors in higher rated securities.","page_number":48,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"869bf9da-35ea-45be-a5d2-dbee9b72d023","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"17bad2a0-6d51-48c1-a65c-d399405e43cf","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":48,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"5af1645f-9fa2-4477-9821-1b8c9fccc964","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":48,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"7c68df5b-10dc-4bc1-903c-18a15392d937","block_type":"box","text":"lower yields and may lose income.","page_number":48,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"df434b56-0ab7-4873-a9ba-881490d05220","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"4529b3f6-5a46-4bb1-84af-1b718562ca62","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":48,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"8648b145-f524-43b2-b4c9-4da15699c76e","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":48,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"9e856ae4-6315-4b2a-a3ce-50e6d7c9e035","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"0df35d8f-be44-42b0-b351-cffed665902e","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":48,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"7e35ec37-b892-42ef-90f3-6e6dad548a0f","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":48,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"cf5c4123-bea5-4001-beee-906f29be240b","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":48,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"e500396b-8464-49f1-8e02-6f6fcdfd93a9","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":48,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"e00085f7-f248-49d6-ab54-10b8e346ade6","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":48,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"e24e6d26-f80f-4473-9cef-9452e558f749","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":48,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"5df679be-0bb8-44cb-91d8-c0616526cd06","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":48,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"2c223572-37a4-4264-a390-c7a94a6ff9e9","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"6bca3567-dbcb-4e2e-b99e-3bbcfc285ff6","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":48,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"13ddc064-2988-473f-b828-cfe576df0f07","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":48,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"b0cdb840-323c-4f40-8ff7-4b51d2d25b12","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":48,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"c3762c72-75ca-470f-9966-91f65ed43177","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":48,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"8d775461-29be-4377-8053-78631148a5e3","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":48,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"6d676582-94bd-447b-825c-be3a3fb488e8","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":48,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"991afa04-570f-4bce-966c-de87eb7f0f63","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":48,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"00e826a1-a5fc-40b1-8662-3ef0f4356a09","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":48,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"e5190e70-3f4f-44f0-b4f8-749f675267da","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":48,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"e014da72-07bb-4ce0-b90b-4238d6933dc0","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":48,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"e98de213-c340-4df7-bf16-630b42c14dd0","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":48,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"691a960a-2f20-45d0-95b6-bbf4537f2c4f","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":48,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"9db01a12-7140-4f1e-bc49-c2ae3affdb81","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":48,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"0ef10537-b579-4f29-a8ab-04ccd6c913d2","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":48,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"df7697b8-70c0-4de7-bcf4-3f91a5ed65f2","block_type":"box","text":"role in determining such valuations.","page_number":48,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"d9d39ac6-05af-4031-a286-a3efa5c4fb57","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"db938f0c-fbab-4001-ba78-4246aa00c94b","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":48,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"8fe9b2db-141b-4eb9-9810-00e885b7a778","block_type":"box","text":"a defaulting issuer.","page_number":48,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"6a2bfd8c-b30f-4932-abad-cdfc23161b35","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"ed875375-8bce-406d-960b-6a81d4bc03fe","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":48,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"74687ec7-39c9-4f62-93ec-a089af73c455","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":48,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"5d8fe3ae-3be8-4d75-967d-07a5e147494c","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":48,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"d97b7344-1c26-475b-8e95-7ada2f0c23ca","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":48,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"d0801de5-ffc2-4b61-8711-a0fb0556ac0c","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":48,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"5998b261-1dff-4ebb-bef5-a0c67a14ab92","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":48,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"a8abf1d7-3268-434b-97f2-5f3c78b35579","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":48,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"ed62ca84-d89a-4811-a9f4-fe677edecd5f","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":48,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"9dce52ed-788b-41b2-a0b1-7b9e09ce9f01","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"c8f7cde8-e52c-4e6c-855c-2cb47750ec27","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":48,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"420849bc-91fe-4805-aa67-c7e46368fa6a","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":48,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"f6f8adb7-2bb5-40c2-84de-6abfbc171518","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":48,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"400cc50e-4064-4fab-a569-e9386a002e91","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":48,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"69fd307d-af53-45f0-b9f6-f0581095f84b","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":48,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8bab788c-1ea3-4b25-a808-badab484dd80","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":48,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"85da2148-43e9-41e8-9c9e-fd2281db6b72","block_type":"box","text":"higher-rated securities.","page_number":48,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"8496ae70-237b-499c-95cd-e190b7256b8c","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":48,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"619dcca7-3815-425d-9b6d-732c005a2160","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":48,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"27a7bcc2-1481-4d2e-a356-cfed4950657d","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":48,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"60c0eb9f-16ee-4c34-8bc8-75cab96ed165","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":48,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"3869e073-db72-4f3e-a13b-69f5e8258313","block_type":"box","text":"II-11","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed6c1f5a-04df-4ddd-8855-15a23307be2e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3b7785c-7343-4648-9294-04dc0eb71ee1","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":49,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"6d4de735-bb1c-4f63-99f4-298552577265","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":49,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"20736826-45af-48b6-a9d8-bb486af62ac9","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":49,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"a489ffa5-e6ae-4435-95bc-6fbad272120e","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":49,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"634daac0-0689-46a2-a305-e571bd28f173","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":49,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"893b5562-16bd-4b80-a0ee-50318b90a457","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":49,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"25174932-aff5-45c7-9b05-65d62ee8bbe6","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":49,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"8e54e1c6-3e0e-4d42-91ce-2368a219d7b5","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":49,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"916f5c3c-be35-4348-a35f-7f78a0b735bc","block_type":"box","text":"Mezzanine Investments.","page_number":49,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"7e6058af-251f-4b94-8718-ddee0e6070dd","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":49,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"12966e34-2a35-47c5-bb9c-9643bed6e648","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":49,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"d8aeaf12-920a-4594-bece-36a96edfddff","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":49,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"f0f4d4bf-032f-484c-9bb1-3795a2d82280","block_type":"box","text":"e.g.","page_number":49,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"e05aa983-b7d5-43d3-bd7e-94c505f2c64d","block_type":"box","text":", with","page_number":49,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"203b923a-b6a7-4971-aa64-d53190dca40c","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":49,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"419b684b-4f59-4b44-9554-2f0b80628119","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":49,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"6f8a8928-b0ba-4ba8-9163-6e1502e493bc","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":49,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"987dde35-78f9-4fe3-8942-cd965a2638dd","block_type":"box","text":"other obligations of the issuer.","page_number":49,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"9e62cef6-1a40-4335-85d2-b4f1cc6fe87d","block_type":"box","text":"Pay-in-kind Bonds.","page_number":49,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"ed410702-3a5a-4585-b02c-e7a65edc2a9d","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":49,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"77437681-f5c2-42b3-8b8a-ed389abcd5ef","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":49,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"65851468-fc8b-4922-a46c-7bd2978a15e0","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":49,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"cdff7b0f-a501-464b-b82b-8c573c83144b","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":49,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"6a73cd48-eb7b-4386-9d76-a9f1856afef3","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":49,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"765226dc-5193-468c-b5d7-9e471c2395fb","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":49,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"e706588c-17f6-4f88-bb33-199ef98e143d","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":49,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"7204818d-abdc-49fc-a20a-c14c42a3676a","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":49,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"54f9d700-2ad5-4710-b9e5-e072f21a9659","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":49,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"6bdae30b-da8e-417b-860e-7d77e4673812","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":49,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"487f4f33-cbe4-4096-93e3-fc00dbd0ebcf","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":49,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"7301ca78-7fe7-49b8-badf-9d951f48f9e2","block_type":"box","text":"Supranational Entities.","page_number":49,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"cba117fb-acbe-407f-b3b7-1501154f3738","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":49,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"fda8183b-b5d9-4c8c-aec7-ec7dee5d1244","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":49,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"8425316e-f2dc-477e-bf00-12fa2e77ac54","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":49,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"c07b524c-c3d1-4c07-b1b9-6fd1e5185db1","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":49,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"95c10a23-729d-436f-bc41-fd6c97a703da","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":49,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"e8f9c56a-ed64-4513-9deb-8e1f69d6b15a","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":49,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"215a4d4b-1aea-45b0-bae4-b7249e1c5c49","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":49,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"2be4040a-ddb6-4de6-9a6e-c482f5de68d7","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":49,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"78eb5837-c239-4b72-9609-5260ccca534c","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":49,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"6647ad46-ba8f-46fe-ae2d-a7f4b51f4009","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":49,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"b9b34837-027c-4e39-ac7b-49f2365c5da1","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":49,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"ad402755-11f1-419b-b1e3-a2fe89e35739","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":49,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"c3dda978-0bfd-4484-9f62-f276489ce3de","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":49,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"fea0f612-c95b-4b32-85dd-aaa68ea470f3","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":49,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"f746bcbd-39ee-4c33-9520-d7b583816b8b","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":49,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"06dba9dc-6636-49ce-9567-8448c288a78d","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":49,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"0e55eb2a-0d14-408d-8a17-6ede41522270","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":49,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"4b464b2b-42ce-4ba0-abf1-90253bde90cf","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":49,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"3c774102-0be2-405d-8b11-f21888292444","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":49,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"3c740db5-f2ff-45e2-b9c7-17487d7482bf","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":49,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"3d3593e8-3634-428c-b590-36fdb2f29b9b","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":49,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"1bfcef04-8c3c-4fd2-a6a5-5a8d41953923","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":49,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"9d263e34-44be-44d4-89ce-0b10cb4f77df","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":49,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"9934046e-595e-458d-ac98-f2582945ac8b","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":49,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"4b93af9e-9a9b-45c5-b9cb-ff1e3ba629be","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":49,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"dbfe0828-324e-4efc-a1a5-b6d2dd3a080c","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":49,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"32a4a0be-360e-48dc-be98-5a98fed1f592","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":49,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"feb8d144-113e-4e2e-be0b-af783a3b102c","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":49,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"ef5e2238-e82c-4fa7-83c1-fa766a245c03","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":49,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"61e3e592-cb8b-4508-a0bb-06ad1cc8477c","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":49,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"33f888dc-8eb4-460d-b080-ba6ccdffe53a","block_type":"box","text":"II-12","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f3002be-f413-4051-a0d0-7efe5cf495cc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4da6b39b-d126-45dc-b2f0-3515ebffe6be","block_type":"box","text":"Derivatives.","page_number":50,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"4604ae04-e7bf-4710-ae53-61028696538b","block_type":"box","text":"General.","page_number":50,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"a0bb6b86-fcf9-405b-b299-03ade489bba1","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":50,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"4eaea923-656b-4d08-8f21-3ef93e244013","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":50,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9e998b04-5fff-4325-a7ba-c9c9ba849994","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":50,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"a7b32684-126e-4e7d-83b6-30ed54078f3c","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":50,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"eb339fe6-ddab-4fc5-ae16-9e0d3234ac12","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":50,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"ce2e398e-c132-44ba-9739-eb20d8094f64","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":50,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"5fabd19d-7fed-4222-8fae-e27e9c740064","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":50,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"1006a684-686f-43f2-a561-2c1f7b597348","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":50,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"23f19cfe-b6ed-4f22-8c94-d39fc2a24201","block_type":"box","text":"i.e.","page_number":50,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"2ffc4bd8-0377-4655-855c-f8e3e1fcbc02","block_type":"box","text":", the payment","page_number":50,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"7f86de87-769f-45c3-8859-d646c3132ead","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":50,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"e9261d44-8059-414b-8213-a0f3d82c2b70","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":50,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"d40dcc6d-3c34-40ae-9f22-5f8e5c1bb116","block_type":"box","text":"Hedging.","page_number":50,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"40139e02-fd66-449a-9dd4-e33d2e8e9394","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":50,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"20b6f79b-471a-4177-8465-fc1d0bcd25dc","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":50,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"55f9185d-c953-4d98-8a0e-f4f87d629b61","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":50,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"b42eec1f-ea83-4c5c-9adc-7c172419c72b","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":50,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"d08aacd6-2659-4aa7-9e67-7bfc739241c3","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":50,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"fcad379d-cc20-4f01-8f13-2ffdb1bd3b28","block_type":"box","text":"correlation risk,","page_number":50,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"1e0be8b8-868a-4298-a923-197cb400ca02","block_type":"box","text":"i.e.","page_number":50,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"40abd494-91be-4392-88c6-d2ad212aef5d","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":50,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"304871c9-365e-401c-8801-4039ba2096b1","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":50,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"9ccb888b-0874-40ce-bf99-5efa7019e61d","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":50,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"9a4b86f3-2008-4ab1-8d70-324391d3f715","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":50,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"038c7c5d-39bf-4ac9-a69d-4c8975a19ae9","block_type":"box","text":"Speculation.","page_number":50,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"839d5216-c01e-43c9-90ca-f9e216b425f7","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":50,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"fc49c8ae-5fa6-44b3-9246-3ae39da0cbb7","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":50,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"58aaeeb3-143b-4ca1-b0d2-a6bed61e2d79","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":50,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"946924c2-a57c-47cf-9206-e250b1784b25","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":50,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"5f541cf6-1d8d-44c2-8b4d-4ca20df878a4","block_type":"box","text":"in certain cases may be unlimited.","page_number":50,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"b43a8217-3140-413f-b656-9598e48cb56c","block_type":"box","text":"Regulation of Derivatives.","page_number":50,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"1b435e49-e0bf-4c43-b36d-d00485b23a9f","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":50,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"e9386cae-a4ca-4343-bf03-6277915aaef1","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":50,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"f2e53190-a757-4cbe-8665-fd67f4bf0695","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":50,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"d249500d-5eda-4e4a-816b-a1f5c9d1c516","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":50,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"6c0f4bc2-68ff-44f5-8d52-59b850f39adb","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":50,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"ee7ea351-f2d2-4861-bf0b-0371759504b8","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":50,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"8e40eac8-8f53-4cc0-bf06-e3cb5c3ef431","block_type":"box","text":"coverage”).","page_number":50,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"b65191f1-15cc-4789-8de5-96d057b90bc6","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":50,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"642c6209-bd5c-4f11-97b0-099d27575876","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":50,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"6be1e78d-4080-49bb-835b-873e345324bb","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":50,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"affc509f-5517-4e46-a5fc-542625128c2e","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":50,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"a99df1c6-cda2-497f-b899-4dd38067d3ff","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":50,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"7e3ea268-b476-4ed8-ad36-8be6cafe07bb","block_type":"box","text":"financing transactions (","page_number":50,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"618cd340-7657-4cc9-a667-24a31a16b068","block_type":"box","text":"e.g.","page_number":50,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"efa5df97-6407-4ed2-8024-073ee770ed48","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":50,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"03125c39-5e28-42bb-9824-a65ccb71ac45","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":50,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"5f323aec-574e-4465-9b2c-a6a2989e8c6c","block_type":"box","text":"securities (","page_number":50,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"e474329c-ea15-495d-95d9-876c3f9c5c90","block_type":"box","text":"e.g.","page_number":50,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"5ab31f25-f4d9-4be8-a44b-88276d763e2f","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":50,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"390bbc03-2272-4272-a854-49ebf1f22882","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":50,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"1f10e13b-e4fc-42d0-aecf-0e51c24ddf2b","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":50,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"a02fe380-3b9e-4571-95f8-2ae1158d1b97","block_type":"box","text":"Commitments”).","page_number":50,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"f672ff1a-34df-4971-8afa-4ce4553ae47d","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":50,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"7c408737-3c11-44af-9ef5-0551cc3fbfd1","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":50,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"e7710d95-b89b-495d-94cb-b1f1504145a6","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":50,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"d3040f7f-3183-4c56-b8fe-078e68bdb9c0","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":50,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"7dbf2370-22c5-46b7-9c08-4509cc8d656c","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":50,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"6f072f1c-c8dd-44de-9163-3330649d404c","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":50,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"c2fc00df-3b55-4de5-93a9-5d6081799baa","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":50,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"e5f7fc51-6f2a-451a-bf7f-162386f3a8c7","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":50,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"c3a1e91f-6f82-4795-91f5-f5c999fef9ad","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":50,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"693f8b5a-761d-4e76-8211-3240174f3545","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":50,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"5a38ff69-6cef-4e82-adc0-8f69b643549e","block_type":"box","text":"II-13","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"81f836f3-dc28-4ba4-a0a8-cd342a98bee0","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db2aacd3-0445-4a9e-9d06-ef3b8f0d61b7","block_type":"box","text":"Dodd-Frank Regulations.","page_number":51,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"6d5e5b68-b748-469a-96ca-2f8f467f53e2","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":51,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"5fb49b24-bbce-4c13-b30b-86d39011795b","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":51,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"3d0c50b2-6264-4e86-929c-3b1706b63a10","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":51,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"b3b35576-4bba-4b08-9655-2dad677dfd95","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":51,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"1f8327ce-bb11-4049-8017-781fb7d66f66","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":51,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"97572bdc-cb24-4df3-a308-bbcb2b51f4c2","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":51,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"c908a142-1da6-459c-ad3e-2cbb0e733fdc","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":51,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"17778d07-f3d4-4b65-9ae7-30937a8e80d6","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":51,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"772d9939-9f6d-4ed7-9ad2-a63d197b8202","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":51,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"854f8bc5-6731-48ca-8b22-634762763d60","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":51,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"362f466e-5d49-46fb-9682-68b7cf762b64","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":51,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"7778755d-daf0-411e-ad61-a077e71763f4","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":51,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"5058ba60-d9b2-4111-b172-292b59bd744f","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":51,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"8e3c9765-528b-4a4d-81ec-b319b164c014","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":51,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"863651d5-fc25-41ab-aa0b-5c84d3bbb5b6","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":51,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"9f72566d-4d40-43f0-a55a-07ae52309128","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":51,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"04273d30-b12c-4da9-9cd0-666db1835c34","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":51,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"4e612c8a-ae06-4ad3-94b1-d24f1712818e","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":51,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"a1c71022-61b4-4524-a743-372faeddd00d","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":51,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"36a75b12-6100-40ad-ad38-8d45f60dd0e8","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":51,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"e3dd3c80-994d-4d3d-90c8-b63b0137e056","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":51,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"f720004e-0d4f-440f-8151-f3da698f9251","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":51,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"24bfa729-02e7-4be6-a282-f1bf6165d29b","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":51,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"b7fc251c-7335-4c79-bf5d-cafdd85df6ae","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":51,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"fa3cce08-ebcc-43a6-bedf-1e01360b28c4","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":51,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"d292a848-3b88-4fb4-81fe-4e3ae951ac60","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":51,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"7f0c9a76-3b4b-4e31-9de6-f137d46cb42b","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":51,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"ff37ce35-ffdc-4d73-8a09-c5885f8fef86","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":51,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"ff1011f9-9e7d-4238-a6fc-b04b75efa383","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":51,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"d737a391-adec-4f0a-8d95-7cdfbf25214f","block_type":"box","text":"member.","page_number":51,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"383aade0-9a3e-4aea-b915-d39e5fa8cc73","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":51,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"1a5c6d24-639d-4db6-bd4a-8de9f4a37c12","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":51,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"2fcb9311-6523-415e-b3f6-1bc44323aa13","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":51,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"0dc7252a-77c3-4fbf-974c-58203c88b652","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":51,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"0ae1e9ad-9b5b-4b71-9563-e08ee9756219","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":51,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"338372f8-1ead-4bfc-91a6-3e39cecae91a","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":51,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"25def7eb-feff-4074-b1ba-12e2cdbf3f5e","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":51,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"1060095c-a88e-49b9-885b-5a7dfee5f87b","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":51,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"71e5a435-5800-4153-8fcc-75dd267d373e","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":51,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"c75e7b07-0d48-4711-b958-3f94b5843596","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":51,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"fc5494c6-ec54-46c8-bfcc-d3407e8c2dfe","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":51,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"71df4a61-ccbf-4254-b0da-900cc37c0c9d","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":51,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"8a0e1313-a4aa-4c86-a12b-b70fc57e134f","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":51,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"7fbf1492-5315-43ba-9e9d-cef05984d2de","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":51,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"719c4dc3-f774-44bb-bafa-15b3fa14b661","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":51,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"7dc28a68-a12b-4b85-b3f5-489d855a31e9","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":51,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"50b36f31-b964-4a11-8015-084a21251dc8","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":51,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"9a9d5827-86d4-45bf-a822-3a780a23260d","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":51,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"3ba65730-83ab-4ecb-86fa-9a041448dfb3","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":51,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"1eef555d-13fd-4bac-8ff2-b156a4929e8f","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":51,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"b8054b8d-4277-43e5-9350-c68f2ad5a71b","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":51,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"85f5a5fd-29ff-4084-bac9-0ab46985d740","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":51,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"d5bb4d9d-5696-4817-8349-1714f6076b3c","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":51,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"4c464fd9-c72d-45a2-ad26-84a1892500f7","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":51,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"285505f6-8379-451c-8167-4052ea59242a","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":51,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"222b54d4-4a6f-490b-aa63-b5ac8d39ce9c","block_type":"box","text":"II-14","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4706e21-acdf-421b-b3da-bdae569fa90f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b37973c3-8737-437e-93ca-6111ffd7bdb0","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"72272039-4296-4919-ab27-f1422491d38d","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"098bf971-c4b4-44e2-917c-6b4b27b1b745","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":52,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"27dc9078-dcf0-4323-8e7a-f8e24a5f11c7","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":52,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"bb12241d-ac7c-43bc-8375-153351ee65b1","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":52,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"7de74320-606a-4402-a71e-d3efc9afd6dd","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":52,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"ddbe5713-858a-40ae-aef8-ea74e81e4698","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":52,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"20bc7671-5ec7-4198-9a9f-019b42c50713","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":52,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0ba7513d-3dd8-4a6b-92c2-7ef1a91f2402","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":52,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"fd0b75ba-8fe2-4408-8868-54da77e5b03b","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":52,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8ad5b577-a660-48cb-95b1-75cb9fc47e09","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":52,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"44cab1fd-fde2-4820-97ad-449368cb834b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":52,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"2fdfcca6-02e9-4375-9fa0-f91da61e220d","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":52,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"7bedfcb7-f97c-414a-a3f8-80f0e5eb70d2","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":52,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"131d7929-825c-4b9f-acc7-af67745a5533","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":52,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"431714a2-b7ec-47e9-9c54-906fc5bee334","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":52,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"ddbea932-3a87-4a56-bb35-1db8bde22bd0","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":52,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"d1935ed7-9104-48b1-9f49-19902cef14c5","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":52,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"870f9e2f-75c7-4787-9e9d-8d028db6c8c6","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":52,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"6d9ab2f8-ed8b-4ecc-b4f5-914b7139e6c0","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":52,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"db6c9368-4b09-4405-82de-69d65a6490c7","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":52,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"9e13385c-0e98-49ac-bb69-1e88ec50a634","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":52,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"4d742362-23de-417f-95c8-a74ad4fd2458","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":52,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"12236f5a-df24-4c10-91e2-df9b2b019f29","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":52,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"55650d77-d057-440e-b662-9da03681344e","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":52,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"6c98f912-d09d-4dfd-b53c-55f2e100e0a9","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":52,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"826d94ac-be77-4368-ad7f-5742d23a30ab","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":52,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"85f6aa3d-abed-4b44-b720-9b1238fb2204","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":52,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"46b4b5f4-478b-4a8c-8a6d-b6735475d6fd","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":52,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"ffd9ee9b-6ebc-4381-a36d-20276f36da34","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":52,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"d1a54f1d-b0e7-47e2-aaa0-abd387aae051","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":52,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"258a91ea-e6f5-4a59-aa7d-530849c50aaf","block_type":"box","text":"collateral received under such contracts.","page_number":52,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"16dbfdd4-1f34-49c6-8db3-7dac1a1c2cf4","block_type":"box","text":"Risk Factors in Derivatives.","page_number":52,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"23bf5588-404d-4a5d-85b3-591b2ff97432","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":52,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"485af6d5-8411-462d-b4ab-4fa98367884b","block_type":"box","text":"Correlation Risk","page_number":52,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"ba2d7bc8-2766-42ed-85b5-3502ee01269b","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":52,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"d877f770-6c66-4d8a-86fb-65da9d6ad4e6","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":52,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"297e647d-9049-40de-927c-3b5b1443b52e","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":52,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"2a4ecdd8-6bc6-40ea-a13c-908f58d407e6","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":52,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"46f6364f-0959-4929-af0c-94aa428fb435","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":52,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"a2ccd9b5-45b0-4301-b3b3-79715c829bc8","block_type":"box","text":"Counterpar ty Risk","page_number":52,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"37137caa-46b9-40e4-aef9-9109eadd8fff","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":52,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"dbad3f6d-bb4a-4fcd-a7d7-f2a17003074a","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"ab8e6e45-9022-4c74-a5a4-b6c0403e1ae9","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1d79b46c-6ae0-4e9a-8483-174b6a33a555","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":52,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"c16cf8ea-d09d-4c1a-8bc6-01fa5d5b44bd","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":52,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"9e4b0cea-1d57-4d28-9f41-6b76017c4876","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":52,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"2069e7be-e2bb-4369-b120-4686d9aad20c","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":52,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"dbeb01f0-9b96-40d4-8051-894e4ac3b874","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":52,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"ae8ec15b-c7bc-4834-a39d-2d6d1feb4754","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":52,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"8a60d004-49d3-404a-8609-7ecc434a4397","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":52,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"ceb68d6b-0976-411a-85f4-6ece6bde4e67","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":52,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"d4e1d994-2738-4790-96d1-8953393fd0d7","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":52,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"5bd256f5-310a-4d57-9b66-909bc30d45b7","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":52,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"bb17fd59-8a1b-4efd-9d7e-5d6ea9f77230","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":52,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"4fee5fb9-a0bf-43cb-9db3-57eb4d989c60","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":52,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"dff526a9-c8d5-40c2-b5c6-3037cb5fe53c","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":52,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"1a606138-4461-4ecb-85ab-08f1b7f9d167","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":52,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"403fa45c-9af7-43a0-9a0e-eca3dea0fbf6","block_type":"box","text":"II-15","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbd4bd6e-d78a-4103-9105-ded007c614cd","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f68b4622-b6a7-4842-9058-206d9665423e","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":53,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"2e72952c-7262-4aba-9476-ab080df54875","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d58a1505-3dbe-468e-ba4c-39296e4ff20f","block_type":"box","text":"by the clearing member.","page_number":53,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"94085d7e-39b7-4c50-9572-828ee99f6453","block_type":"box","text":"Credit Risk","page_number":53,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"d9cae056-741d-49fd-baa4-531b29f3f528","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":53,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"6e7a6f9a-4663-4df6-b7bc-acd5e882d19a","block_type":"box","text":"honor its financial obligations.","page_number":53,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"5c22c30e-bd55-4ea5-9e54-3c5abbee8825","block_type":"box","text":"Currency Risk","page_number":53,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"86f15c26-c873-424a-9bc6-8b01947b3368","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":53,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"89679d6f-2244-4b80-8085-0f6742f9c64e","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":53,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"4be28b2c-8563-4924-897e-af06b6eb2ece","block_type":"box","text":"Illiquidity Risk","page_number":53,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"c5fb59d5-698c-497a-a75c-e20dbdf2daf8","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":53,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"d2702128-1a94-4c3f-a743-99930b448edd","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":53,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"adcd1164-bc2b-491f-b330-3e4cefa43d72","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":53,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"0b4f0f38-0a0e-4859-9d64-3216a7af6840","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":53,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"2e979012-5493-4ab0-96d7-030a32859516","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":53,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"05edc15a-cd9b-4cef-b489-5288a2bb8881","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":53,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"bec5b18c-31ae-448e-801e-cd2088d02c1c","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":53,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"521e18b7-6bff-446f-8185-16f09db940cc","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":53,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"07200f2e-e083-4a4a-b31a-c2b76f30d153","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":53,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"c5050020-7d01-4eef-a212-1614c8f12c4c","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":53,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"5a5b09bf-ee36-49ca-a3ce-ad460917d5c1","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":53,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"099eee21-3461-4c9d-8e54-e1065010d6fb","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":53,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"32579a8c-e10a-41e2-96e8-3812db486dc6","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":53,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"abe0c795-8140-456f-a2f2-b5c8d47dc6c3","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":53,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"8217089e-379e-4ce4-8008-45db4e2c7921","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":53,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d99fe092-619f-4c2f-8807-c347fe34d777","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":53,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"75230072-496b-4242-99f6-8941cc7d30dd","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":53,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"099754e0-8dc7-45ae-8fbb-543cb10b13eb","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":53,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"7aef925f-5215-46e0-8568-fbead4b6ae81","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":53,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"ff4e9bdb-8fa1-497a-b563-6dfb0c57c748","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":53,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"d893d2c3-0723-4285-a394-18d27e79bd60","block_type":"box","text":"may be disadvantageous to do so.","page_number":53,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"13c52d1a-b345-4e17-ac73-ff86194feea0","block_type":"box","text":"Index Risk","page_number":53,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"f0ff6717-35ab-4c7b-b1f2-238906d028b1","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":53,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"73eca2b6-c8fa-4fc3-a33e-eebb732d0c62","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":53,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"8ff4ac86-7f6a-4177-b3aa-9b1569aac49e","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":53,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"b744eaa7-e737-4da4-9553-dea7d84ca719","block_type":"box","text":"Legal Risk","page_number":53,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"e8052313-f0fd-48d1-808a-40688aee1d55","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":53,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"0d37b96c-b7e4-43e1-9c84-ebd6abfebbf4","block_type":"box","text":"or enforceability of a contract.","page_number":53,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"fe7cea58-c157-4b11-8fbc-57357f173890","block_type":"box","text":"Leverage Risk","page_number":53,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"ddae81e2-4f2c-45b4-8f49-09484c37cb98","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":53,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"7205c42e-a1f9-40b7-a800-4598e6cb5ba6","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":53,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"ca92c878-5ba2-4e0a-bfed-45727b045d6f","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":53,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"c6bf3719-42ef-42ff-956b-ec32f40e2cfb","block_type":"box","text":"Market Risk","page_number":53,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"f3a069e5-6466-45b7-80c4-401ab28c45e8","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":53,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"3544c558-e4cb-4882-bad2-1af18d615d8b","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":53,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"4e5f963b-e5fc-4268-a63a-a2541f4b2b8b","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":53,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"45e04185-b4a1-48f4-b177-ebdd7640ac79","block_type":"box","text":"affected.","page_number":53,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"df3d2a38-1c5b-43fb-982f-698e4a5436d5","block_type":"box","text":"Operational Risk","page_number":53,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"bcac9c2b-d3c4-4f4b-8f80-13cf07c38b09","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":53,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"5fb9146d-6631-4d44-8e00-d7fef94d6e16","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":53,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"c4a58bb8-7b3e-4b07-ac3d-672e49c62e1e","block_type":"box","text":"Valuation Risk","page_number":53,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"d8b8641a-0066-41d1-9c1e-eed8c2eed3f7","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":53,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"cd337ccd-4c3b-4d1b-90e0-8d86ee8b4626","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":53,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"26777de9-6760-4396-af0a-840e0e132bac","block_type":"box","text":"complex instruments or quote prices for them.","page_number":53,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"693e68ff-00c8-4ad9-880b-75062776ca3e","block_type":"box","text":"Volatility Risk","page_number":53,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"b382cee2-4cc7-4cda-bf18-f017f804b1a4","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":53,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"c08be53c-fd8c-4e16-9293-fc44a78d5f2c","block_type":"box","text":"Types of Derivatives Transactions.","page_number":53,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"40e4e1b1-b351-4c92-97c0-9af3824c99e1","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":53,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"0cb67059-31cb-419b-9011-4885a3ed3f53","block_type":"box","text":"including the following:","page_number":53,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"f6ba1b02-7803-482c-8813-ef25241fd14f","block_type":"box","text":"Futures.","page_number":53,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"9bab3284-eccf-4c5b-baa7-93ebc9677f8a","block_type":"box","text":"II-16","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f247afe1-18d2-45eb-b3d6-e3f6ff74b36e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db9463b1-83f0-41c4-8150-4466d69d9b8c","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":54,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"dc683db2-5514-4bf5-9cf2-213a14fd1689","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":54,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"2e433868-db98-4866-a668-9fda67c3b511","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":54,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"63f252c8-57d9-4f11-9b49-4f17e3a09566","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":54,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"abd50120-e25f-4995-9dc9-18817db7b51b","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":54,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"b95f4474-ef64-44a0-96df-143835bf9024","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":54,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"38cc78b6-2269-4e08-b496-b7a3014f86ef","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":54,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"9b5f8d68-d9a7-4ade-ae83-9447a81c69f1","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":54,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"d98f9317-f975-4e7f-a78b-db6368ddb1d6","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":54,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"6b1f303b-f997-4bec-b202-7e7d01ee1cf4","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":54,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"bf3404e2-862d-4d2d-ab86-e11360092bc6","block_type":"box","text":"of the futures contract.","page_number":54,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"4b09d22b-554a-464b-bfc5-3264e321536f","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":54,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"98d207c1-0be4-4efb-9e15-f4fcec44359c","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":54,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"488baa8d-fad7-42f0-b73a-e928c7b28cc0","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":54,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"4ac71955-64b2-45d7-aa2c-9ac12906224e","block_type":"box","text":"relating to the futures position.","page_number":54,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"08bef8dd-1a14-44bf-a314-2ed9707d408e","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":54,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"334e99e2-6b3b-444a-89f8-47909e136d14","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":54,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"1fff5593-7b7b-40c1-88e7-75a1ef9baa28","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":54,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"5e5c1f05-9876-480c-9479-04ab07aa8b13","block_type":"box","text":"Regulations” above.","page_number":54,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"21958172-aaba-4552-bd5f-1fa6901264fb","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":54,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"eebbecc8-5723-44b2-ba49-ff858762d548","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":54,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"0dc38209-44be-407b-a40c-0e7b8816a371","block_type":"box","text":"(","page_number":54,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"bb03c9a9-d027-441b-ad90-62be82347811","block_type":"box","text":"i.e.","page_number":54,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"f08987da-27a1-4e2f-b208-325ec50934d7","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":54,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"b95a3e20-f8db-4c83-a809-54703ccd1242","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"5c5060e2-9b42-4d58-990b-a76cc7895734","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":54,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"18f28b32-1c50-403c-b5b6-b7181156d662","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":54,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"4e69d8d6-c667-4cf5-8253-81600ca7ec88","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":54,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"e4863b36-b323-42d0-ba88-44f16310a39d","block_type":"box","text":"Fund intends to purchase.","page_number":54,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"5ed3f6d9-99cc-4d85-9d24-1701bfe0bb9b","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":54,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"2eab06cd-a8a5-42ab-b950-e1864af7d94b","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":54,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"e33f9a96-fd02-4b71-a69c-996a961b864b","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":54,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"8299e596-4123-435e-9827-ef5766abd0f4","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":54,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"eac05200-bfdb-498f-bf09-0c7e17b53ef1","block_type":"box","text":"illiquidity.","page_number":54,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"ce6c059c-5d2c-4865-a6b1-ca417f5eabfa","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":54,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"6d8c7ae3-b0dd-4acf-a188-0e652bd357f9","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":54,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"dc21cb27-2046-445d-a699-d46ecfab68a8","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"0ef6997b-3f9d-49da-9e92-96679ef78da5","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":54,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"20af8398-71ad-4a55-b2e9-55d5a03e8b54","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":54,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"4fcc28a4-5480-4e62-a237-f4a4385c3837","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":54,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"192c3ec1-b721-46e1-9702-4860bf059195","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":54,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"d492ca44-2b0f-4d68-a29b-6aa4f33b2923","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":54,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"74b7ff41-6d1e-41f7-81da-ef4301c7e161","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":54,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"99db480c-199b-4a05-8446-169652cf1c3e","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":54,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"311ab456-edc7-4f5d-b980-dccf00e6157b","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":54,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"1e2a18ac-a9e5-4b4b-baec-c5d92c66e57b","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":54,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"4a600e62-bca2-453a-9a0c-caea82d65983","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":54,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"5382b252-066a-4ee4-8543-476ca29c5bd3","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":54,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"ff5a37f9-5e9f-4fe4-9d5b-3a0d97982397","block_type":"box","text":"Swap Agreements.","page_number":54,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"5987ce31-ac28-44df-b8a2-b33c3d29581b","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":54,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"cd6b8ba1-b4d7-487d-a839-3c70c978f352","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":54,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"65b5a5e5-32c3-45ba-bc3e-84edb4e4e9e0","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":54,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"b87b9a23-2a94-45c8-a529-4fb4fd9f9d7f","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":54,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"d712ecc3-b07c-469a-8d92-c61b0ab0a008","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":54,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"f210380a-c311-4059-b329-7211086ef1cb","block_type":"box","text":"a “notional amount,”","page_number":54,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"4f2e878e-9c52-449b-84a9-17746b26be85","block_type":"box","text":"e.g.","page_number":54,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"00c44369-2085-44c0-9af1-cd6baff76ae8","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":54,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"9a27dad2-6380-4abf-abba-1801103667d8","block_type":"box","text":"II-17","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71e0dad9-5870-4912-a09d-4ccd4cac0fd2","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d4ce14c-178d-4ed9-a1f1-f1519ef2ef82","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":55,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"e8677f58-ea10-4494-95f9-17ae9ea3b50b","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":55,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"d42bfe8f-a5a6-4c04-bf75-0cd2a5a5d6a4","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":55,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"da00a737-8383-48e9-ac47-50a18b605b6a","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":55,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"6e549d45-cd3d-418e-a3d9-70a9418ea155","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":55,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"c5fdd4f6-c98a-4506-a569-1eed90a14a68","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":55,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"3a2972c2-7f39-4684-8b31-df6d053b1369","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":55,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"0dcc3573-14e8-4b7c-9397-160fd1ec975c","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":55,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"9f7caeed-175d-4be1-aea6-70442e5e7f13","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":55,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"de06fd1e-262a-4564-b476-ee600735fa5e","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":55,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"13047bc1-c9f7-470c-9fc8-e600650a4793","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":55,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"80949ba5-840f-433e-a49f-3c4ad2ff129a","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":55,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"762b4713-b64a-44f6-bf59-0af3f8bc2d52","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":55,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"2d39dc0d-5dcb-4cac-b34d-66959f10a4d5","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":55,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8c42da79-d0b6-4e44-8b86-bcc01fcdf335","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":55,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"40f55a67-eeec-4bcc-866f-80604a9ec6bf","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":55,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"2a5e3ad8-6e0d-4c06-a2d6-e2c71a3ab089","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":55,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"2754987d-8290-4a53-9eee-bc3bcecdf5c3","block_type":"box","text":"index CDS.","page_number":55,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"8a7e050f-821b-4480-a371-f85c707aac71","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":55,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"b18ef070-4a82-4862-a178-b88a539881bd","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":55,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"62d8a410-22be-47c3-954e-419fa39f20d0","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":55,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"378cef98-d60b-4bfa-bfd7-dbd4ed22ec33","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":55,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"594d979f-bbf8-42e4-b09e-c3f2cbf65f15","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":55,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"9d433de2-9ee5-459d-9c5e-517e81cc822d","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":55,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"f226dea9-8414-4e2a-8014-381292530a26","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":55,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"2d823f5b-e7b0-4414-add2-e786051007d4","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":55,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"ac9534a1-a17a-41f4-a6a2-24d7480b6984","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":55,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"ce067d25-cb7a-471b-b18e-851ea10a57b6","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":55,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"a5a05355-b467-4e30-bb71-a587956f00a4","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":55,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"2483f9f9-412e-45f0-ba3b-a2724a722db1","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":55,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"7154ff70-161a-4a22-a59c-0b69924db94a","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":55,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"61246d19-6789-4303-b3f3-8677a4773589","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":55,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"4984fa01-4419-4d69-8e35-5feea5059f0a","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":55,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"1897a400-3d58-4c65-8d7b-88ecc0291c85","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":55,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"99043e98-010e-4538-96e9-71a5b6082a21","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":55,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"75a64d2c-2930-48d1-ae92-521834fd6be5","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":55,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"4527cd64-1c38-4a36-b077-ddd5d3290683","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":55,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"0df67f5b-c764-48cc-b32d-34e6cc762e3f","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":55,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"a54f3680-240f-4c28-8c1a-fe9f1d6da9a5","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":55,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"77d19cdb-50aa-4ee8-bbb3-614a37567a8c","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":55,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"1bfad1f5-fb0e-4d58-bf88-8490df82e420","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"63635a50-c9c8-433b-8e4a-e04e060f9ba4","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":55,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"8f275d66-9b78-428a-80c1-f2a2701cbeb7","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":55,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"cce9742d-377a-42b2-b19e-d71e5176f42c","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":55,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"9450413c-f85c-4665-85b3-f92e66719752","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":55,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"2e8dfaec-1a79-4ffd-ac9e-fcaf46029705","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":55,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"ff5ec9c4-fe83-4f4f-831a-771fb1d0b456","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":55,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"d0f0ee2d-0a49-4fb7-b495-303efeb485b3","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":55,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"8d02aace-2e50-4451-a62d-ecb5402c100f","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":55,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"0ff06b68-20fd-481b-b833-dcb0682a296c","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":55,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"d866b73c-69aa-4da0-b1bd-4405504c4d93","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":55,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"7b95732b-464a-45b6-817a-460abb2a405f","block_type":"box","text":"conditions.","page_number":55,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"eada4a0c-d2a4-4087-acb9-c4390ed52c7e","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":55,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"83d8de45-88cd-473e-8908-6a8699ca87a6","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"ba2bd12d-cb98-47c4-8676-78c550c343c7","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":55,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"951c09f3-61bf-4df6-8792-a8be1db69a5f","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":55,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"cdd347c8-50b5-4b1a-bc26-6ff386d55bc7","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":55,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"1ea9114d-9570-41c1-9139-35858ae422e7","block_type":"box","text":"II-18","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c143c3f1-dc54-4e82-9c09-a3b30bee08ac","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"981f753d-2ba6-4fe4-9bd4-9b9f65396027","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":56,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"afd99a0a-a96e-4d3a-be20-7e1f42a706e8","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":56,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"afe35dfd-f744-4b37-b9f5-e0b5ac2ca424","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":56,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"85f8e8cc-50d5-4c91-8557-b7ce4bb40d55","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":56,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"7d4b5f0b-1ffa-4e23-ba6f-63abbbbba7cd","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":56,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"1f223278-d74d-4a85-8b18-83285561c8a5","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":56,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"e95513c6-8edd-41a4-ab38-575d181bd2a3","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":56,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"27ea0d40-4dea-4335-a542-8334bddec83f","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":56,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"dda26ec2-ec86-4606-a079-f24add6d0a79","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":56,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"26fd7d9b-21d9-42a7-9d96-34c2507b81ef","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":56,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"fed10ba9-ae8c-45bf-b7a0-e38f3ecc4297","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":56,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"f0cc4764-a445-4af6-ab28-8724c7583730","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":56,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"15b521e0-cdf9-4f7e-b657-e6973c19f2e2","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":56,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"ea6089e2-6a3d-4a0a-8a57-42325d59b429","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":56,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"f6976c0e-0162-41c7-b577-e68d2c97e8d7","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"ff2505c0-cba7-4cc4-96ea-549331ca53bc","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":56,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"adc3506a-add0-4d92-ac2b-18fab84ff0fd","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":56,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"0451978f-16ca-4c01-bd92-b9c8eecabac3","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":56,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"9dcb5072-98f3-4ca7-b357-d287a332e7df","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":56,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1a17724a-62c0-483c-a5a9-58352b7f6966","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":56,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"a8fe4214-db5e-48c2-ac33-92508c97caa7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":56,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"900810d0-6380-4a6c-8227-43fdd87f115f","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":56,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"cc128a5e-ab97-4f46-8c03-5e3f910981e0","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"c2f5b837-1608-4e78-8eec-afb6c8c39f78","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":56,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"c43a35fb-4ffd-41db-b102-cb4a95e583c7","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":56,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"00f0ade1-b2c7-4f22-932a-da763189ce58","block_type":"box","text":"cleared interest rate swaps.","page_number":56,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"a3d7ea65-0fa5-47fa-a5d0-1be070a0cdca","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":56,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"d7fb4bf5-d503-4d94-9e86-80e22098c524","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":56,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"5f732878-8bab-49b1-a82d-3e9a53e056f3","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":56,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"f85f655b-0da1-4109-84f7-1fce67529028","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":56,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"b0a19d54-4b52-424e-b5f1-322222dbb944","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":56,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"667113c2-7f78-425d-9bd5-ccd487028d42","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":56,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"e2d52704-94d7-401e-87cd-53b807ea4821","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":56,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"93404033-9904-4ebf-a613-7baf1e258dfc","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":56,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"9922a7c4-79fb-44f7-8c1f-728d163ff74f","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":56,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"8a77c8dc-f349-447e-a7db-21fdaeb38f83","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"b2ed4438-4787-4631-bddd-cefac488d30f","block_type":"box","text":"or variable interest rate, index or asset.","page_number":56,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"a200ff26-5f93-4b33-9300-feb9483783bf","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":56,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"c7c471ad-4eb3-4a07-991e-b1f107a5d9f9","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"a2ec2948-9f5a-4faf-853f-06da80014668","block_type":"box","text":"such interest rate floor.","page_number":56,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"682498b9-f8a4-4cf3-9712-f66b53081aae","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":56,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"e8b258c3-879e-40b4-937f-2802602ed5ea","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":56,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"581dafef-02bf-4594-a018-7e5fd7106e2c","block_type":"box","text":"such interest rate cap.","page_number":56,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"1ac3bf0e-77dc-4828-917c-c4d9b6650ea2","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":56,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"83968799-1fe6-4b90-9840-3f22f8b01f5d","block_type":"box","text":"commitments to pay or receive interest,","page_number":56,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"bb16c56d-c256-49a1-8225-4cf2d8cee609","block_type":"box","text":"e.g.","page_number":56,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"d0c1139e-d7ce-49c3-9dde-a3d1237fe0be","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":56,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"c221b85e-95df-4da3-96d1-8c58b09e3a75","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":56,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"dec985c7-c0c5-4112-b9a9-d0f16fb36108","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":56,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"cabe03cd-faa0-4335-a714-215412cfe57a","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":56,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"f948938e-11e7-452d-a77f-fd39c946b708","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":56,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"5f545e25-7d43-4fb5-81df-a51f902bc96c","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":56,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"da9c8ddf-9596-46c9-96b4-2a535c4b2297","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":56,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"07ddab6e-b68d-4f76-bc26-f0a5b254a69c","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":56,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"34dd7daf-c2a6-4167-92c8-e29766bbee5e","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":56,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"2b12f074-3e12-48df-8189-fbb860b39a31","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":56,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"025f91a2-da04-475c-9cfb-7590720c66b0","block_type":"box","text":"II-19","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b247d075-9b63-4f32-827c-6cd2e509b545","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd55773d-267a-4929-b216-0dd8050b7be6","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":57,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"86e2e513-5139-42e4-958e-f9ee7a6f005f","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":57,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"2f429b48-7ae5-4e9a-a7bd-3a277fd05faf","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":57,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"7394e32c-9ab9-4f96-9650-739c438fdceb","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"9411bb55-6873-4e5e-9f22-c2502aa5cc55","block_type":"box","text":"Total Return Swaps.","page_number":57,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"521dcfb4-7298-4ae9-95a0-8b30ef24c3f0","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":57,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"bcbc435e-2ce9-4719-a802-c194387f8b4f","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":57,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"a1580815-157a-4461-b86c-c883c112e6bf","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":57,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"a852c178-298a-4a7a-97c1-bd2bc05c17ed","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":57,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"37676bbb-ddc6-4805-b55a-9ab8374202a5","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":57,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"ccd3db9a-760c-468a-8c7c-02417fa416df","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":57,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"0aaa80b5-8987-4f6f-ab06-341ceea121d4","block_type":"box","text":"“contracts for difference.”","page_number":57,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"8f92dbbd-30ac-4fa3-a4c7-d54024d08260","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":57,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"b1cc8e55-d5cf-410f-950b-4e553956064c","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":57,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"bb5db0c2-438f-4fb6-9f8b-f63d4b5e8e85","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":57,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"5efa2bf2-9ae0-407f-a8d8-a631dae2b63a","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":57,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"77bab4e8-d739-4fc1-abfa-3af315dd80de","block_type":"box","text":"the notional amount of the swap.","page_number":57,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"4f48b120-2a7d-4b59-8b10-309380b00901","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":57,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"375ecd99-bd1f-49ba-ad6b-8fb50068a3bd","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"6e64ab85-4a7c-4a3d-a8c4-f8f271000feb","block_type":"box","text":"Options.","page_number":57,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"cb77649d-ccd7-4c14-b728-50315ccc3872","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":57,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"dd070859-49a7-484c-92aa-7172971d24c8","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":57,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"2b220ffa-c415-4cb4-b84b-c3549afe61b8","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":57,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"5b6dbdbb-8750-4283-a690-73d17ad2623e","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":57,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"a9cdf99a-80d4-4f59-865b-079eb59e1aa1","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":57,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"00aa9b2a-3376-473c-a9b6-a0ad0df059c8","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":57,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"80596977-49ca-49a3-888b-408025d1fa5a","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":57,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"fbca91fb-4de4-4788-987e-4db1fb2f594f","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":57,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"ea288e6e-b17c-40f3-b9c3-951b58996cf2","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":57,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"16190b61-e1ed-431e-9c70-e29f30f77dcc","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":57,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"a1b7c162-dcb2-48c3-b9f9-665b1523d77d","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":57,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"8f028673-21d1-429c-b819-79e6b3c12dac","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":57,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"240b7d19-dcf7-4a7b-a4aa-0aa9fc7f9a7f","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":57,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"d8fdc14b-19a6-423c-b023-8ec90d15a297","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":57,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"73712e15-9cb4-4129-bdef-8b2351e3da62","block_type":"box","text":"OTC markets.","page_number":57,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"8f538fca-6564-4f1c-bc89-161cd0113f61","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":57,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"22d008e3-d3dc-4cae-98a3-c92736c2c027","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":57,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"edc09aa7-eeb7-4822-a617-7e19438042f1","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":57,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"04736ea5-76b1-4770-9c36-ab45dc537b78","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":57,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"23deaf48-ba74-4b61-aeeb-31687442fb64","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":57,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"841cbcec-cedf-43cf-ab95-0d89e4ae18c3","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":57,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"14c446ec-57ca-43dc-8f91-9aafe01017be","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"dfa978b1-1af4-43d0-be5e-3be030543919","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":57,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"5ae8921d-5e08-4af9-9b12-4dd3c2b79ed5","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":57,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ab51fe36-072e-4830-be6a-7bfebee9a983","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":57,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"898bf40d-d2b0-458f-aaed-cce9893d7d80","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":57,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"b594c266-ebd9-490b-9437-12f9a5620b77","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":57,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"47a2e7e8-e52e-4e40-b280-4a0a529c3b07","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":57,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"de06dc4b-4b5f-4d58-812f-1b780a9fc8f1","block_type":"box","text":"terms.","page_number":57,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"809affa9-fe38-4e4a-8fdf-8314376ab257","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":57,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"c4c5e1c1-963b-4e82-b787-a1f134349970","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":57,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"704c9c82-f236-4ae2-adfc-c6f528d0a293","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":57,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"65e785aa-eb2a-4d80-8544-8ae8f4370aca","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":57,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"e2ff9c80-577e-480d-bb29-2abb95f1a291","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":57,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"1f3daebf-d2a0-406b-af73-5a7be7476bcb","block_type":"box","text":"II-20","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"06c38dba-d436-45af-8506-849795b54e3e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f778141-7d57-4603-99a7-224e975a0268","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"151a6325-5568-4c9c-a97d-1a6495231d02","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":58,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"f4569016-c0b9-4267-87de-f9c63333f092","block_type":"box","text":"Call Options.","page_number":58,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"9be0ea9e-6fe8-42cd-9987-f4fc4bb1b92c","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":58,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"470b1ded-aee8-4089-8293-ff28d85bc157","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":58,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"3c8f65ea-87e4-4285-b1c4-2a0efb944c08","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":58,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"b9efc945-db81-4d58-9dd9-653318b4294d","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":58,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"0c0c844f-9fe3-4f0d-8b63-e0357c49771b","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":58,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"ab73e5ba-14e2-48ea-8b3e-05fe4a3075c1","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":58,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"9a9e9ed7-c6a9-409d-8844-3138b6503b17","block_type":"box","text":"of the option.","page_number":58,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"6ce9a439-9a5c-4c0f-b7a8-40a49eaace07","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":58,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"825b8cbd-e3c4-4bbf-af22-29980e49e7b3","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":58,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"0565ba65-157e-46e8-abe5-45ecc8671c1d","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":58,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"2cc898d9-437a-46f4-a554-9dc4af40d60e","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":58,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"4a143d29-42ed-4671-a6ae-b5e181c1261d","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":58,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"4ac370c0-f7d2-4a5d-9582-40acde822346","block_type":"box","text":"A Fund may write (","page_number":58,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"75f9cdbe-b38f-4ad7-837b-acb11dfd05e7","block_type":"box","text":"i.e.","page_number":58,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"8eddbf22-e51f-4be5-9008-0d247d45001c","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":58,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"b5b36648-fafb-423e-bce6-cb37fdd0eb01","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":58,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"001ce170-c246-4f39-9f7e-b29a469708d9","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":58,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"fec5d0d8-d067-4918-b496-d3e6faf433fd","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":58,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"964beb13-9eee-4bfd-bbc6-5b401ce3ce5f","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":58,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"9c01ef58-21e7-4975-aa4b-049ffe624fc6","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":58,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"6c8e745c-5acf-43c5-a272-7a401ac2f453","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":58,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"2beddad7-ffba-4298-87b4-c178dcab6c68","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":58,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"570baced-9b64-4c4c-957b-b8763994a4bd","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":58,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"c1d9ab32-5635-4f5e-bbda-28bebe304d0b","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":58,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"a06361b8-6ea9-4c98-ba78-d0c7b7a99d88","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":58,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"77ec061a-ea32-4e55-bfe1-4fe61df13841","block_type":"box","text":"A Fund may write","page_number":58,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"1ca3b12e-4b20-43a1-97c0-e74bf8992727","block_type":"box","text":"(i.e.","page_number":58,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"166f51ec-3ed4-48bb-bfde-65d2a0a6c227","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":58,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"46cab5c8-4bd6-4e51-9007-34771384c5a2","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":58,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"cc4e3387-aa63-4b96-8812-36a5c60bae27","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":58,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"75976bae-94d3-46d4-bb39-5aaaf4995b8c","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":58,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"c0531af4-a932-4724-894b-5823de12d155","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":58,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"481bdb7d-315b-4222-83c2-8d17f6752249","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":58,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"b08c2a4d-7e5e-44d2-a9d0-150778d4636e","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":58,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"295673f1-71c2-4486-8d86-baa7f224c99d","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":58,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"96ae2d3b-8b9a-4d10-b02f-717064ff880d","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":58,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"4466f0f7-48cd-49fe-8218-6e6dbfb49a90","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":58,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"89866f15-8609-4b07-a955-c3f41d270a9d","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":58,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"c4efb8cb-d1da-4a5f-83a0-920ae4348962","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":58,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"2f649390-8ed7-4c9e-a7ca-2042d02684a7","block_type":"box","text":"Put Options.","page_number":58,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"c700d0e3-1941-4590-b6a9-eb0b0f6650a6","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":58,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"4711a62c-3e39-4115-8589-4d0387627b3b","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":58,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"39f3b99b-0931-417e-bcb6-76b8a9d1f0b4","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":58,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"388e2438-c3cb-4d04-8f3c-37e6d66b8d4b","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":58,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"b6824ab0-c5e3-47d1-a50d-e6ecd27bf823","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":58,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"822c3528-c6d4-4788-a179-7ed369ea364c","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":58,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"af18d73b-4826-434a-abea-873e372599a7","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":58,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"77bbd1e7-967b-4683-bff8-763774b06398","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":58,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"fb4c451d-d388-4335-a42a-b09a3ba3b96d","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":58,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"e76ec8f5-18ba-4f58-9619-f50d481e033f","block_type":"box","text":"purchase uncovered put options.","page_number":58,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"996fb170-00e1-4c43-b416-de12a5fc32c0","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"dcfa41d8-ff2f-478b-935f-eadc9940dc5a","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"58d4bf70-40ab-4161-9002-434ae52d6a1a","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":58,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"80e8afaf-e4b4-4310-a51f-849c8762a1ec","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":58,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"4f35c4c1-caae-4fca-97fd-3c391b83b47b","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"cbcad78e-2316-4831-9444-26fe5f8d4d6b","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"b86d4671-031b-496b-be78-46f7826a25d8","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":58,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"e3283e4f-1aa8-4bc6-ac01-ff62e0eb53c6","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":58,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"aadbf88f-8954-474c-8dcd-330d5c127017","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":58,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"0422e200-6628-4937-991d-55025c0d82f8","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":58,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"bee691df-5b08-4ad6-a38d-7cf932419ae4","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":58,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"86eaeaaa-87bd-4f73-a9c0-f75443e3c9f2","block_type":"box","text":"II-21","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b7fd077-989f-4149-a869-83b617472e13","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc93a669-a10d-4a98-b6e5-d17edf9c4b9f","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":59,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"23f050a2-a5ff-4de6-a820-04b907a11627","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":59,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"8ac9f77a-9053-4b64-b038-e7d1374f9556","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":59,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"b7e7bd38-e299-4424-ae8f-e30a07653da7","block_type":"box","text":"the exercise price.","page_number":59,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"40a2c8b4-49b2-4981-90b0-cdc0d93d7fbc","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":59,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"addcc517-da11-415d-9216-e6d5952df7e2","block_type":"box","text":"The following information relates","page_number":59,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"2bc70563-95da-47a1-964c-4321d0bbed65","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":59,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"472f9785-c0dd-4c86-bfe8-29a1ede4bb75","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":59,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"e61d7c97-0ac8-4e09-8e91-c65e9c1f7f33","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":59,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"735f0ad1-38a5-4868-b244-bfb991851072","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":59,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"7cd5f414-e463-43d8-8007-0c851da778b1","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":59,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"77b4a431-7f17-404b-a116-ef012e836748","block_type":"box","text":"market in order to maintain its “cover.”","page_number":59,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"709275e8-47bd-4e67-8c11-60ee30c7b554","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":59,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"4108a48d-8a7e-46ba-b7d7-547b77d3511b","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":59,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"74b82552-dd94-4669-b6a0-04eb57275be6","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":59,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"eec6fc43-b45b-481b-8932-5e1819488130","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":59,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"6bbd32ff-cae1-489e-813d-035404801ff4","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":59,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"40d08712-8597-4b1e-b3d8-1705165ddaa4","block_type":"box","text":"and incur transaction costs.","page_number":59,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"32e88c42-d96b-47c3-b005-b06384ac887f","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":59,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"abecaa63-a0f6-444b-b3a3-08d9754dbaa2","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":59,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"164eca50-75e3-44f9-b880-9762f7d93dba","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":59,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"8cfb25cc-e65b-418c-bea9-e2eda583dd29","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":59,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"c3082f45-fc9c-46f3-91a4-26e2e2794b4b","block_type":"box","text":"i.e.","page_number":59,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"ba63e598-416c-4092-a38b-4e246b93cbf3","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":59,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"99a35f9c-f024-446a-afec-0150eb784483","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":59,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"f4abef81-d902-4dec-925c-80d4c6df402b","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":59,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"e0e67efd-c3ea-4222-8e3a-f6719e8e5111","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":59,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"e900bb9d-0b05-41fa-bab0-e842315108d2","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":59,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"746d7060-d12c-459d-89f5-f9f509cb0842","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":59,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"026a5ea8-ba8e-4e42-a852-a3ce06033539","block_type":"box","text":"required, to be cleared.","page_number":59,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"9157c4dc-290d-4a9b-a2ac-968178fcc8c1","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":59,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"6b5c506b-30d1-410e-9d15-a9be34823a96","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":59,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"8c1b6348-023d-42ed-92e1-f94167b74816","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":59,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"b94ba0c2-e2fd-42a1-a082-86e5bcff645a","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":59,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"09eb83e0-a859-49ec-ab68-62a844ea84ce","block_type":"box","text":"Derivatives” above.","page_number":59,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"b04d5e04-38f4-4e0c-97cd-a00e24d030a4","block_type":"box","text":"FLEX Options.","page_number":59,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"a6e23d98-3082-4e84-ba4c-15159a6e154e","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":59,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"fb80a9dd-ee60-45fe-b587-5bc6c1a220d4","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":59,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"fd6798cf-d9fe-4fac-8663-0fac32e11cfb","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":59,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"67a5960d-3c94-46b0-92ad-2383577e4108","block_type":"box","text":"exercise prices, exercise styles (","page_number":59,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"ceb2428e-0d46-4b46-b124-ff72c5350562","block_type":"box","text":"i.e.","page_number":59,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"eac1d33b-9a44-4bd4-a46d-fe44ce092784","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":59,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"9b9009d1-be4f-4be7-ad1c-2c736d4fad32","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":59,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"fd6fbf3f-45d0-429f-b076-50f3b616f54d","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":59,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"233bfe00-1f32-4610-bd7e-d10d364cf553","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":59,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"a22f6d6c-4814-45bd-bd1a-74cc65565e71","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":59,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"1c701590-f309-4ec0-94eb-7d1327fcf9f3","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":59,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"ce6ba28e-7810-485f-b01e-bcce75dffb8a","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":59,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"7859c46d-532b-488f-b582-5bfe866ad226","block_type":"box","text":"FLEX Option’s expiration date.","page_number":59,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"c04918de-3655-4ac9-b8a5-6488a51de19f","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":59,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"c178744b-4206-4409-8f0f-2da0efd6bf02","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":59,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"00ccfa22-201d-4818-b487-5b5b80aae076","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":59,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"1b987ccd-b2d3-4c12-8f0e-269582cc6306","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":59,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6660008c-54b4-4715-a1dd-0fec9983fba4","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":59,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"1af83cc7-9cba-4297-aa78-bb3f1bc9b743","block_type":"box","text":"FLEX Options contracts.","page_number":59,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"e2992ecd-cc34-4461-bce1-b3de4a75ba04","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":59,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"8d059bc5-57f8-4f5a-97d9-59a381418fb2","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":59,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"a6eb1163-62fa-45a3-9beb-da1303d2df65","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":59,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"604ab27d-21ad-4786-9218-1f3a3a548e74","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":59,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"69ef56ae-ce0f-49a8-b915-e6b067b9bc41","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":59,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"e03b2530-ba48-4233-977a-6d4c14321a8b","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":59,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"f75fd778-f159-40aa-b483-df7222626761","block_type":"box","text":"II-22","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f071ffe6-5ac0-465c-abc3-c8d67fe6b51d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c6141a9-0bde-4da2-bdad-355615b897b2","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":60,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"b355085b-b491-484c-b2d8-24629d000ca7","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":60,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"630db178-2758-410a-8ac4-40b5a1aeb1cf","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":60,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"fc77c819-f89c-4d52-87fa-1a799e2df3e0","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":60,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"c00e82fc-ec80-495b-8c2b-6ee9c8cdd9d8","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":60,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"19166946-4d4e-4027-8772-e7824bce45c1","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":60,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"e552df10-be40-4ee7-8143-d7253a85ed2b","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":60,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"3fc5b2a8-3417-4b7a-8750-44fdedf8f8e8","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":60,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"ae2ed401-97d0-4e20-806c-8d50d96ae44e","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":60,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"13502ae6-e585-49d0-83ff-f761c30acd67","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":60,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"16d8e7c6-7b81-4874-bb64-a9fb66837fdc","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":60,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"1acc51a0-2081-463a-9743-473e8de2689b","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":60,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"cc25d3c4-80fb-4905-8734-355f19ba5c0f","block_type":"box","text":"expire unexercised have no value.","page_number":60,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"6e010c82-4c25-4201-b8c6-b7864a8dcc7a","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":60,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"bd088648-65fb-4401-a0a8-596e931f9a5b","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":60,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"00208ccc-5561-4e9c-897d-3f5d7ba1de67","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":60,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"b021a6db-4d97-433f-b002-de74aeeeba81","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":60,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"cca588f6-2998-4de8-8c37-6faadff4b7e6","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":60,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"309e974c-4710-46be-84eb-11f6c0caa409","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"3154ed0c-9118-46fa-9d12-e885cd5970b0","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":60,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"3ae5c576-4367-4dc5-b908-b6d7873570c0","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":60,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"fa5122dd-a7b6-45cc-87a7-d736fcf93a18","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":60,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"c22cec05-a409-459a-820d-98adfa46d115","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":60,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"6b1b7216-5766-44ea-8321-dbd750903494","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":60,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"c8c512d0-f1d0-4d3e-acd2-4673913f7eae","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":60,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"4039504e-e95a-4815-9fa4-1a37ff81f6b9","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":60,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"8b5f6ecd-5237-4dfa-a43f-afe57d5b14f7","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":60,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"b26a68f1-d357-455c-bafb-1be9d0f3863b","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":60,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"1faaf7d8-5e09-45ee-845b-e4906fb39aaf","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":60,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"623048a3-d565-4b29-8acb-8277696bc4f0","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":60,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"935a8a55-a3cf-455d-ac6f-4cb6d5cc777d","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":60,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"617ee23a-3c11-4f48-90e9-c3077d7fb232","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":60,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"bdfaa02e-acea-427c-b69e-d98e3503dca0","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":60,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"ba6c6096-1244-49ad-a609-1fc09d1a0c56","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":60,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"c8c7db42-8b8d-40ca-ad96-2fca71a8ac2d","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":60,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"3bfa97bf-1f36-4024-9514-7d9eb16cbdd2","block_type":"box","text":"Foreign Exchange Transactions.","page_number":60,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"6770ebd7-ffc7-42a2-8201-34d1514587df","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":60,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"5c514a25-2402-4610-98c2-e7663951566f","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":60,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"bcb49fde-4240-4a53-abfe-0ce6d76eab18","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":60,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"08b97698-61b9-4dea-bfb8-8627b707b77e","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":60,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"8b36fcea-bed9-45a6-8077-f25af69aec3d","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":60,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"265bbd5d-70b3-48e4-a233-d8c3f65c015a","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":60,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"39e9617a-8b8e-4c9e-bd7a-ec3e11d98770","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":60,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"212c2ec2-86cd-4306-b121-5397c1069d06","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":60,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"45ec8d11-57c7-4a03-b994-9aabdd5819a0","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":60,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"403afeb9-634b-4aba-969c-8ce65cd6bc56","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":60,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"67bf7fbb-d285-4270-9879-9a72682373f0","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":60,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"e3e804d7-4eb2-472e-b549-356de449f022","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":60,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"1de9b513-747e-40c3-8415-c2a412d0b0f1","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":60,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"946afee6-e8dd-48fe-88ee-7699d4eca93d","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":60,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"9f1734e5-bc22-41db-b397-6b8052d3bede","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":60,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"4ebf6a1e-fe58-4168-b6bb-5099072eb1a8","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":60,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"b992b8aa-944d-4ad6-8ced-7ce263934574","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":60,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"527993ac-282d-4cce-8c32-dc5dc8fedf7e","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":60,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"ee0bc993-f747-4b9c-9906-5dd0af017e16","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":60,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"d80fa876-68c3-4c65-843b-4f09fb9f7ac9","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":60,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"ea88f94f-79b6-4119-9270-adb26f76e0ab","block_type":"box","text":"II-23","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e15348c-83ce-4983-bfa0-d875edc7aef9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f7725a5-7c0f-41bc-b6b3-f444748b1685","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":61,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"b534f71a-2206-4569-9060-e82fda6d4058","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":61,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ca543fee-8dc3-41e6-9868-96a9716a6070","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":61,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"650745d4-fa14-4d9a-b986-663f5fdc1f1d","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":61,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"e48ea97b-a3eb-46e4-b45e-09dddb29dd52","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":61,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"dd4aceb8-be86-4d7f-bd89-249a207af50b","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":61,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"1e525320-1398-48db-af30-cd728b954a9b","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":61,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"f4bac9c5-a38c-4240-9a37-13a0e9f11602","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":61,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"f7104d31-1911-4f87-a93d-53c12b8d9ce4","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":61,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"b63e80c8-d205-4159-b158-90396bf466df","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":61,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"1eaf7c5e-4652-4bf0-91ab-e89a07ac1e3c","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":61,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"d18a26a0-94a4-437a-a547-a6a7b7d70a7e","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":61,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"2c322209-ab94-4762-ad80-64660b79c005","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":61,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"2ec6d2d7-adb9-41d6-96ce-2ffe22f0a317","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":61,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"3a6555bf-bc2e-4718-b8f5-7f68004350f6","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":61,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"1cbffcf4-3d96-4e6e-913e-8b98af16edf6","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":61,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"5c48d21d-3428-4408-93fa-a37c57310a40","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":61,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"4e7698c0-3300-4b27-ae97-09f780dc11cd","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":61,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"60782aeb-cb36-4980-8f14-3204081908f3","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":61,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"28ebea2d-fb69-4b62-9273-cea2d6d69ff4","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":61,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"5e240ae2-95fe-4295-be7e-8ba05bd556db","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":61,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"bc609c31-b33f-4f94-83b1-307e863e6044","block_type":"box","text":"involved.","page_number":61,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"7a1211a8-9018-4136-b608-345df8bd7686","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":61,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"05d71e56-8d7e-4acf-a217-12889ec1521b","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":61,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"85152b6a-b240-46f0-a1de-657e8ead781b","block_type":"box","text":"denominated in such currency.","page_number":61,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"52c7126f-b5bc-48cc-8227-83c5e6405a09","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":61,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"3b0445c6-ec0b-4d3e-983e-014ea9afefc1","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":61,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"ac754ffd-133e-4f87-832c-3cb67f3768ba","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":61,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"ada568be-06f8-444c-b320-9f5a8c6e7132","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":61,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"1565d08e-7ec9-4033-85db-dfe8c99b9dea","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":61,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"38cda183-3c3b-41f2-bd6a-c4e35746e00c","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":61,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"307302c8-fa00-431c-bccd-d12b822679f9","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":61,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"50f0a245-ef04-4ad3-b301-fae6a4ba16a9","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":61,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"0ba9416a-3308-494b-ab43-d5b71812e8b4","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":61,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f062de5e-06de-44f2-8087-745e87e1a1d6","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":61,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"876065d0-5ae2-47bc-aafc-cb93fc5f0daa","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":61,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"379d18fc-71e0-45bc-b27b-9595f784612f","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":61,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"e1be7061-882b-4192-bb44-d86ea85d6cb5","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":61,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"169b7d60-aa94-455e-abac-8cae3deb93da","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":61,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"fae051ca-ecdb-446e-87e5-fe5f1db63e64","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":61,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"59a351a3-1479-4cc8-9bd2-783195086eb0","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":61,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"a38c2f3e-7c43-4c98-b21b-c0ac95e1e986","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":61,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"da753eff-ceaa-4ed8-ad18-840a10b773e7","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":61,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"640ff627-0afd-4ebf-b7f5-3ae9706d4d92","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":61,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"517f9329-9e59-44d1-b074-e9c8d4caa650","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":61,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"16067e88-3a6e-4e4f-8062-058c2e713407","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":61,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"648da7bf-bce4-46d2-b22b-0bed5b31d080","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":61,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"a3084cb7-8567-4e53-8b6d-841a9c920ca4","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":61,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"6d75eb8d-e041-4b77-a73d-95fb904ce8e1","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":61,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"026fce98-e16d-4d32-8fbc-b7881546d0f4","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":61,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"ade2fbf3-1bdd-4bca-9f5f-618bd45cb540","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":61,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"de7353e8-a069-476d-8e1e-69387c96f9e9","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":61,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"a4423c73-cf6e-4a29-bc6b-7684d4e6b6a6","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":61,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"296ba467-cfc3-4f77-a5f1-21a7e29cfab2","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":61,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"2cbc2a12-a576-42f0-8508-ba95099915a3","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":61,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"62277921-f722-4d7a-91e2-74f4380ae22c","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":61,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"1099c0eb-a699-4800-a7b5-ee91824f59ff","block_type":"box","text":"II-24","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b8944d9-3519-4291-b011-544e510925fd","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11ca2b62-2b4f-4557-bfd1-d8dd45806415","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":62,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"1499f412-347d-4017-97a6-1ae29a2d0560","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":62,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"978417e8-c31b-4a4c-a0c9-b441a8caef29","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":62,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"fb8c7955-cc95-4553-b6d7-a15a568ef2e4","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":62,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"1b35881f-fe6e-4e30-89de-b7b3b5d10fa6","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":62,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"0aabd8df-0ec9-420a-bf6e-3fce9240c9a1","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":62,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"d3d58d2e-7019-4807-bb9b-1888a2f5b8af","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":62,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"bcfc442e-a884-4f8d-ad7f-be8e17993fd3","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":62,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"ec1e3263-7008-4882-82a1-3df437ee29f0","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":62,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"6cbdbf29-b5fd-4648-a8f9-dc2a9900be01","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":62,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"a29e0f93-70af-4b0e-a06e-1944d2723fec","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":62,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6e424f76-424c-49ce-a66c-a8b023fe61b4","block_type":"box","text":"traded.","page_number":62,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"acb1dcb3-2d8f-49fe-867d-e52acd1825b1","block_type":"box","text":"Currency Futures.","page_number":62,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"c2898167-dde9-43e3-8590-c2fbffc58e31","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"8140d3a7-a616-4dbb-8a88-e8af8d6554ae","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":62,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"9637b5fd-37eb-4e2e-a058-2a05193906dd","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":62,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"646176cb-01ff-49c1-aa80-65a134c77147","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":62,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"423b5646-fa6c-4719-b5d8-e47c025a8605","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":62,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"30b11707-7b81-4f02-8de6-02c76946bd2d","block_type":"box","text":"Currency Options.","page_number":62,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"87a26658-6589-4d87-af6c-45418f199db9","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"e6a2bbdd-9889-4164-a5e8-d4a576f0db1f","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":62,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"c0926e8e-7bdf-4e8d-acda-6936b39fee23","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":62,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"1272e30b-5335-4ecb-be78-591321fd4c15","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":62,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"b5f11fb0-ed6e-482d-a11f-9e39c4512741","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":62,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"706f99a6-8b46-4784-9c23-7a32d23bbc24","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":62,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0584c71b-e0d5-4337-a17d-3387b2bf4d00","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":62,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"2cfa9f4d-19b0-4169-935e-6b979a5c46b5","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":62,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"026a9498-e88e-40b4-902e-bc527856e1c3","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":62,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"1119c411-5234-4270-b113-44829b05f2d0","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":62,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"657ed3c9-2c20-41c6-99a5-b3e4c136c144","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":62,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"060ca3da-7540-4ed2-bc75-03e8cf593988","block_type":"box","text":"Currency Swaps.","page_number":62,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"934b6892-5b6a-4691-92de-2381f7502026","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":62,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"612b48d9-1dfc-456e-b7cc-d9b56fa4f272","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":62,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"aa9d946c-c229-49d2-a37d-ca89c1a78803","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":62,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"90f5deff-c9a6-4f4a-9312-ece149d5b181","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":62,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"fd662919-7d12-4b8a-8b2a-fb7500e93ab4","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":62,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"77a4aeac-9909-4f65-ac42-de679221c5c2","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":62,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"1bd81392-4229-447b-bc71-620e43c7b36a","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":62,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"f5fb9f60-9c43-4a8f-9e0f-fe02499f96e4","block_type":"box","text":"Distressed Securities.","page_number":62,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"957b4418-3b72-4401-9f38-8dec63f200c1","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":62,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"da81e683-baba-4893-b4c4-2f0fa58fca2b","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":62,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"aef896dd-209c-4b54-94bf-0751a70e17a1","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":62,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"d180eb34-da2f-46e9-9aa0-c9dcd83f604a","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"6231bd1b-3644-47e7-b1db-7dbbb8947345","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":62,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"09d1f1d7-0dd6-4f66-86f3-679104ce3128","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":62,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"99ff0310-a8ec-4c2a-8727-6ab7aa3356e0","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":62,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"e3781bee-b13a-43c2-a07d-2cfdb8675f86","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":62,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"2a6345ad-515c-4a40-9287-4c7236228322","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":62,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"b3ad7320-d215-4177-8810-485597e6ae01","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":62,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"704164db-b039-4f9e-9bf1-17393c09084f","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":62,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"087d61b3-d985-4c05-ac9c-5d59142f0938","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":62,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"32b9e099-1a5e-4600-91da-eeb2b38e371c","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":62,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"f99075eb-5c10-4297-bd74-6e04ad71b7e7","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":62,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"d2d218db-f8f5-4368-a4e4-44877ee4b3b3","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":62,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"8fab670d-119c-49c0-a33f-ae8ba69e724e","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":62,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"dd4cacb1-a5ee-4145-84a0-0f757d6998c4","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":62,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"311ee54e-445c-4d9e-bbb7-4a44977e5ff0","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":62,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"535e6ca7-c92c-4cb3-8d2e-39ea3c439c37","block_type":"box","text":"satisfied (","page_number":62,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"094d6ebd-5aab-429b-8d2e-8415fcc7d2b5","block_type":"box","text":"e.g.","page_number":62,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"583a4c61-475d-4d60-945d-ac6b00b0145b","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":62,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"76222487-69f7-460b-8305-fc0affd05a10","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":62,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"4375fd92-08b1-4a7f-bcc2-f973ba7c0771","block_type":"box","text":"II-25","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d288a078-f2e3-4ec4-b138-d76fa73de62f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f439144-01fe-4592-bed6-8c9d880ff598","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":63,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"2cc1877e-84e4-4536-8b3a-051fcf02f18e","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":63,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"7f07223e-2bd6-446d-bfbc-963e3f5c0056","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":63,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"37063211-0ca9-479a-b1a5-efef1e5eb4eb","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":63,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"a3ead643-79fe-42d9-856a-4f276dffe75c","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":63,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"d76764e5-47d7-41c2-a833-729b06aea917","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":63,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"7cebfc7f-0477-421f-8f31-fdddca8bc724","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":63,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"6ce47370-9dfa-4243-9077-523dee2a32d3","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":63,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"a9340e73-0a0d-4651-8314-8bc3c5db2002","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":63,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"51c01142-6045-4b80-b526-c673ed5e7f32","block_type":"box","text":"affairs.","page_number":63,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"34b540a1-7d94-4501-8662-cd9194f5db16","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":63,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"4777f235-a9e1-4efd-b39a-9819a3afbe90","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":63,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"4fe7d695-6a39-462d-8f1c-6e54a6c536fb","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":63,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"782c7ed2-8c18-42c5-bd4f-9ee1af129495","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":63,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"3d5bbd73-0812-43ca-a0a5-e4125c79950d","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":63,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"6616f026-dccf-4b46-b1cf-1ca1f4375ecd","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":63,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"f10be7b4-36cd-448c-b53f-f23054b5b1db","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":63,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"90242d5e-f599-43d8-9928-172f15faf873","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":63,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"d0ee0393-1664-44f0-b686-aab3579497a2","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":63,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"f029c098-bde2-46f8-baec-2c319318c800","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":63,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"84027a66-fce6-441b-8cf5-e0436051917e","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":63,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"a438b515-7b81-4c35-ab39-47bbdcba3c21","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":63,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"0ee5ecd4-23d8-4e8f-a410-5c3e28c0ac55","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":63,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"2d5053b2-f9c3-4ae7-9bd2-73cdf3a14995","block_type":"box","text":"Equity Securities.","page_number":63,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"b10c311d-0466-4541-aa81-a44bf2bbcb92","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":63,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"9ac7d2fa-61c8-4eba-b5b3-9becf3f5989f","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":63,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"69cd02b4-9766-485a-8d7c-5b831a3fd12d","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"b1deb009-c0df-4b21-88cb-e5fdb525b588","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":63,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"3420f4c5-7ddc-4ba5-b127-cfad6afefcf7","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":63,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"f95b6992-6bdb-44d2-9432-6bd3fe49d4ad","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":63,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"b177e233-68b8-4000-97cb-25a18452d5de","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":63,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"7aaa0774-1efd-4857-8ced-5fb62fa9bd16","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":63,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"0ca4ffd8-d819-4f81-9f44-2a7749bd9946","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":63,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"f7ab7276-8e79-47bd-ad03-e540944a692c","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":63,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"dbfa6f6f-c6ad-41b0-8305-88c5e0a3fecd","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":63,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"03f1ac62-5161-4162-a95c-3ebc1bf4aa7d","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":63,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"c239ac96-a9c5-4f7b-bff4-19795b3d43f0","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":63,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"f9a93cf2-692c-45fd-bbca-936982cefb7e","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":63,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"0680373b-f4d1-4173-a9e1-19bb13a1377d","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":63,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"4993fd39-3226-486b-b1f7-20d99f1cec6a","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":63,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"c95af902-2c70-467f-93c6-43ad6515e5af","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":63,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"ea90a06a-d9a9-4a6b-b3e2-7bb7cc3aba5e","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":63,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"91025e90-178b-4cef-af3c-a2dee173733e","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":63,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"99e16f8c-f722-494d-a710-ed2444688d63","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":63,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"ae0bb563-0c23-4285-898c-4c8dbd735997","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":63,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"4f8c69f1-3987-46de-bb64-18bcaefd75bb","block_type":"box","text":"initial public offering.","page_number":63,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"10aba836-03e1-42de-8000-aadd93d4d68e","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":63,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"a9b532fb-97b2-4af9-a72c-f89d3aba369f","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":63,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"975a7bac-0264-448e-85f1-69c2b9b5a7c7","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":63,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"13b0b7f8-d316-427c-9eeb-dbf7e6deca06","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":63,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"9755411e-8cf4-455f-982b-36d90ef484d9","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":63,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"9b33d0aa-291f-41ea-b186-3067682013d6","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":63,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"7471da2d-9ca8-4e0a-a7b1-231cc83b8b39","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":63,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"2b9935fb-3d54-4bec-8297-11a1490a1e3b","block_type":"box","text":"more established companies.","page_number":63,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"8419e1d7-6fc2-4a5a-98fb-b45e9457c97f","block_type":"box","text":"II-26","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6b8812c2-ccc7-42ab-8f9e-0a9aeb26310d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19cf06a6-1ec3-4b79-90b3-8fa4ff7bd976","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":64,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"7eec5e1a-edd5-48f5-a655-fef4b9ae5bba","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":64,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"607cb231-5c7c-4f44-9736-ef445191ad36","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":64,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"f617e4d7-0a29-49eb-aa91-41c4b2d90cc1","block_type":"box","text":"below.","page_number":64,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"c79f4bf5-e955-4d04-935e-54c2ee304ec6","block_type":"box","text":"Real Estate-Related Securities.","page_number":64,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"5b9a6d21-f1c3-4463-aeda-dfe45fba0251","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":64,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"8e1d2287-ac15-4492-834b-8c19b95c9640","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":64,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"a24a3f53-4f22-4784-808e-f8a2f3acad8f","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":64,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a2778b86-2248-4002-85b4-1fd1ca87b1d8","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":64,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"ac3fa701-86da-4b84-8401-49d62ff4c5ed","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":64,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"c1d3de03-7704-45c5-93cf-c1dcbf8dfd6f","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":64,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"02ad610f-b868-43f2-8b8f-96e8cb75d79d","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":64,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"728710b2-2296-4986-bf32-7c25d5c8d05c","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":64,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"9c86a2ca-4034-4335-a28e-e96d536de922","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":64,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"1ec7d223-528d-4505-9245-867f57c14108","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":64,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"fd1b336f-794d-4d9a-b96b-f6cb2f61c2bf","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":64,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"4dae2190-67bd-4b7f-9544-8d18a19f5542","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":64,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"0eea2fc9-33f8-453b-ab61-31b522c5cdb0","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":64,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"a048aa84-3df5-4cf9-af3d-b674bd484502","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":64,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"5f357931-26b6-44be-bd83-3f7f86ede3e1","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":64,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"268421c0-2599-4664-bae6-0c2a96a61dcf","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":64,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"ff1b5290-8c61-4976-bc38-a5b454d8507e","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"9a67431c-1226-463e-adc6-183be996045c","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":64,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"7e68fc0e-f714-4919-afae-a99a3e683e27","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":64,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"e3d772ee-a317-4350-a569-35bc883a200b","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":64,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"d515d7a3-acd7-4e3a-942a-1b9ced694d39","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":64,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"7863baf0-1c01-42ab-99d3-44a51de9ca57","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":64,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"4cc0c586-c694-403a-89e5-02bc776c71d6","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":64,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"b5578b20-b55f-4386-bda8-906be2e60dcd","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":64,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"3a523cf1-f75e-4376-8952-a12175ee8152","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":64,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"2c476dfe-bc7a-4989-8866-c3cd0ace17e9","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":64,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"05517940-346e-4a15-9bac-436c405f8b7b","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":64,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"48198c3d-5ad2-4cf5-ae9b-f38cc8acc3dc","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":64,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"e1305a01-a345-40e3-a6e9-efdefe783222","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":64,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"8f49f630-8d7e-49d5-8a5c-e0439aee815b","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":64,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ff1bf4f0-426d-4f68-97ad-8df2312af3e7","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":64,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"b0499eec-e175-419d-a5ce-83f7234383cc","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":64,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"a0151eaa-07f6-42ed-9415-a72cadc2584f","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":64,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"11342ee2-aba8-46a7-be86-2f10c8861c64","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":64,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"e29f15b8-a39c-4345-a69a-e8ebedaa2948","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":64,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"b279eee9-7af1-41bf-9fd9-c723757a5813","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":64,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"2afb22ba-bf4b-4cfe-bd6d-36048ee67d2e","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":64,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"2921283f-4548-4b70-9ee7-2a0e5bad3e5a","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":64,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"62638b30-0268-4593-9923-bc2d5183a903","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":64,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"4aeabd1e-0f72-4725-87a0-5a41bc9c7599","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":64,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"46b2db38-1017-45ec-b46b-237f02461e12","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":64,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"937f22cc-bc12-47af-bfab-ada82eb1d319","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":64,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"e73b745a-c15d-46e0-915b-f3ba520cbce9","block_type":"box","text":"cycles.","page_number":64,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"70228028-869d-4c11-a545-bbe8340c817c","block_type":"box","text":"Tracking Stocks","page_number":64,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"777ff9b9-3255-43e3-a14b-b056c8a994e6","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":64,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"9eca8a80-64cf-4af4-be32-b2071edb99dd","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":64,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"797f06a8-3b34-41d9-9e9e-6acfdbd5f8c0","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":64,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"2f9fd8d4-e7ae-4c1d-8eb4-2954fe4b336e","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":64,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"41f18940-2d11-44a0-9974-7282edef51ee","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":64,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"01325ce8-a5e6-4a11-a8b7-0d5dc8d569fe","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":64,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"e583f6f3-453b-440e-8e09-8fa3981891b9","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":64,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"955c897e-fd79-4ce5-8b85-d41f80f25b13","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":64,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"14f6c6d7-8b33-46f1-b43d-88322a9e2b19","block_type":"box","text":"II-27","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6953de50-6aff-4f84-9153-c52c7dd2aeeb","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b9a04be-2876-4c4e-b8cb-63c7a3934dfd","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":65,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"f0758a82-56a3-4dd6-ae4e-eed34f12cebe","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":65,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3f091907-4f03-4bd6-8945-3f288da57521","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":65,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"eca4c75c-46dd-4d2e-8b9e-f046a9d494b4","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":65,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"69efbf13-2239-42bd-b83a-1dd98afe533d","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":65,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"4dd6fa4b-0e92-4d4c-b955-9f52e94d1024","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":65,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"d54f24da-23f5-47d7-b300-35dae69f5c22","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":65,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"de6ff4e0-914e-468d-a97e-cf5e8f783e10","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":65,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"9f0ef219-12fd-493b-a0c8-519c5e9c2139","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":65,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"16af112b-a769-4b1f-85b0-57df78e7a3c6","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":65,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"e893a839-1bad-4e5a-8fd1-9917295bfe98","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":65,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"42948161-91b5-4e1c-8ad6-ea2d2e2a21f3","block_type":"box","text":"ETN.","page_number":65,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"48279004-abd6-442e-b516-01706c90cba1","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":65,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"c5f63b9a-7947-4985-94df-05168b0ddd48","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":65,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"63518ec4-a664-4f9d-ba7b-30a1eb0c3ef3","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":65,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"7240aba3-6a17-4a2a-9037-ea2ef9eb928a","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":65,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"ef094656-2cac-4d02-af32-125ae404c86c","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":65,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"13c28590-f7e9-4de5-ad5d-624b44818eb7","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":65,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"9a9c5888-964a-4803-8842-2694328b0c9b","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":65,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"2bbef7f1-85fd-4c95-865e-28da3d5c6258","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":65,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"6b553b5a-c440-4a48-8afc-e3c64c5946e1","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":65,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"da765868-e60e-440d-80b3-c97809a615a5","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":65,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"df171cac-4339-4f5a-ab9b-da07f1dbea85","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":65,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"369495a8-dd4c-4b70-a4ca-40c9b8826e1a","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":65,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"1341850e-b9c0-4820-97c2-51a4fbdf04bb","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":65,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"939e2aad-ada2-4526-a919-affc59157432","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":65,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"56a23cbf-686f-4f19-a4d2-495d725db65c","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":65,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"ea01d87e-aa11-4b5f-9df0-2aad02671603","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":65,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"7b280964-a671-447d-ae23-274989b74c79","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":65,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ad1745a3-6da1-4c68-9207-d19cfb54014d","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":65,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"943f1877-7daf-45a5-ba05-8b90af3f3a8d","block_type":"box","text":"Foreign Investments.","page_number":65,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"3f572dff-4b99-4d3b-b137-530df8693c75","block_type":"box","text":"Foreign Investment Risks.","page_number":65,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"dfbe4103-28bb-4fe0-9b36-93e8c5b8073f","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":65,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"2650311a-54ba-4b79-a9f3-43ee56ad2b87","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":65,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"ee848665-b3df-4997-a1fe-48e2160c3980","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":65,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"a4c254a1-8eae-47e8-9751-697dab13a7f2","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":65,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"7b1e3540-6039-460b-9324-4dc3852615f6","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":65,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"f15b07cb-8810-4ba4-b6e9-2d2f24e81568","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":65,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"454c2630-4db7-478c-81df-bef95dab9eec","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":65,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"3ab8f4e4-5094-45c0-9daf-c8fe8802089e","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":65,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"ae613601-2951-43d6-93d5-0729c1417d55","block_type":"box","text":"benchmark index.","page_number":65,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"8462d180-86f1-4fad-bb98-af10ba25cea5","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":65,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"402337f2-afe7-4a39-a52d-b4208668deae","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":65,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"b8037e0f-7c9b-4aaa-8359-524cbc63fd85","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":65,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"8dd91528-a147-4e67-b9ec-435ffea817d0","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":65,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"6bd2ce39-0486-41bd-b0b8-fb89a1ec0c8f","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":65,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"079967a0-3ff0-4d57-ae05-669095d25772","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":65,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"ab03e37e-e43e-4ad8-980a-cb8fcceaadb0","block_type":"box","text":"securities and zero-coupon securities.","page_number":65,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"b2ddf988-799d-48a6-9ce7-2a7da36f017f","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":65,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"0b03b730-24ad-497b-ac81-39cf16cc23a5","block_type":"box","text":"taxes.","page_number":65,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"a501a3b6-8dc0-468b-8273-032909acdb7e","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":65,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"2f6e0290-fb9c-452a-a907-e9ff69238388","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":65,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"0a659a5f-56a8-478d-b749-85c8114bd035","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":65,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"5ac52288-c6fd-42da-bd38-695c4c3fd657","block_type":"box","text":"II-28","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d064ff51-6c3c-4a56-bb55-0b4b4ce61b88","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ba20130-1f41-454f-9a9b-46657b2e2627","block_type":"box","text":"underlying security (","page_number":66,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"b3141259-df44-46b9-88d5-403e0131e480","block_type":"box","text":"i.e.","page_number":66,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"cf72712e-f31a-491c-86d9-b280ab8f9f98","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":66,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"65d3435a-35a6-44ec-9868-2051e1aff56d","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":66,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"7dd3112d-31e4-4da6-b444-3ba0f6d290ec","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":66,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"df2feda5-f12f-4265-939f-9b26581b09ac","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":66,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"6b90dd0b-592e-407a-b0e2-2558ed318dc3","block_type":"box","text":"Foreign Market Risk.","page_number":66,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"7b5ea767-0fc8-419a-bdc2-15eb9421f1f2","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":66,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"a9289fd6-bbbf-434c-a54f-6c8d4838be3d","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":66,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"b4eb4626-1d92-4327-8804-8e1b3e34db3b","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":66,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"bffe3acf-e14a-495c-8991-9c094d40781c","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":66,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"d380658d-9c79-4f27-9866-26cf9583b16a","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":66,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"2c3d6d02-2ae4-4637-a306-54b8fc0a61ec","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":66,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"bb622d81-55e3-48d2-b55f-6704fe95af6a","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":66,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"9e001971-ee73-4538-9f8d-f389d71cc861","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":66,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"0de065a0-f72b-4df1-b3a8-735cab1f60c3","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"a703fcec-8c20-4596-b047-4b64532e95fb","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":66,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"53293d57-3e01-4735-867a-d237edcca564","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":66,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"0352a237-277a-44e0-a086-01aa82170400","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"7c5c52a7-a416-4fea-bf42-ebe47b8c71f2","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":66,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"7ee3e6bd-28ce-4195-9e84-89c95340f05f","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":66,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"7a03c22b-91c2-494b-a3b9-83b7236a4e78","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":66,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"6b15a64a-7eac-466a-8e38-ddfe5a387129","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":66,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"c9af33a5-2138-440f-83c5-67f3de695f23","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":66,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"19bdf1fc-0303-461e-958a-aa5943fa5f8a","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":66,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"278818f5-3e11-48e5-90d7-33491c002775","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":66,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"2879f73a-7e1a-482d-ba04-9ce2a2b6fd7e","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":66,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"c4f00128-e15e-4439-8c5c-5ca6122f5cc7","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":66,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"52ac2d43-f2b8-4bcb-93ba-ca6d4e553822","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":66,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"55e48281-83ff-43ea-8e33-080e3c496213","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":66,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"e970df25-40c7-4817-9dec-b37601ac294b","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":66,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"77be55f3-eeb3-4f39-9a32-2dba2b165ddf","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":66,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"cc176239-9985-4aee-b5cf-ed61871ddcd8","block_type":"box","text":"Fund’s operations.","page_number":66,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"b46fd886-520e-4fcd-afec-50c7d12d66b6","block_type":"box","text":"Foreign Economy Risk.","page_number":66,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"02c59951-89b1-47a7-99df-da6a141a4185","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":66,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"7e19b7d7-9ac6-4671-97a8-89aeb99f3837","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":66,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"56e1e2b3-4485-4aa9-b1e9-6c0708fa9fc4","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":66,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"551e2007-8e3e-4627-9e6c-9a7c9f0697a3","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":66,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"4c8030fd-02a5-42df-96f0-746613e0d755","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":66,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"bc99cc12-2963-4c8e-a475-2e81908d865e","block_type":"box","text":"measures.","page_number":66,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"ef9b86f9-a9bf-4758-83ff-ebe0b9dde10c","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":66,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"93db22e1-6c83-477a-9cfc-acc840824228","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":66,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"37b2613c-0985-426f-b02b-79219a2f4be3","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":66,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"d7b66228-803e-4e75-b5d2-317eee6d1a33","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":66,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"22c5f7d7-540f-4ca1-aaa2-ef205daafb2a","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":66,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"e3614264-ca72-470b-a11b-391756d18a26","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":66,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"4d769c53-210c-4984-a0b2-3b7baa2ea0fe","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":66,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"2f0cc1f0-9d52-4a22-a16f-20ef887f61ec","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":66,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"fe0a610d-1268-4aac-895f-f8fd34c22c37","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":66,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"833abb77-cf4b-4d78-9f05-573963beb43d","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":66,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"6512cf39-9cd8-46b3-9c28-0c6c8604f022","block_type":"box","text":"United States or abroad.","page_number":66,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"9efc4c80-706f-4c6e-9792-f60272ffc448","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":66,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"f5334ad8-a820-4fc1-a59c-c890d8fc0be3","block_type":"box","text":"Many foreign governments supervise and","page_number":66,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"b636a957-cc87-48e5-a969-d56bc174a394","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":66,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"f0dc5156-0d33-45f5-8993-83660f2d6d22","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":66,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"54c4453c-9f26-4407-9752-0f4d369d4a6c","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":66,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"3bf3dc2b-41de-4e33-a497-dc0b20bd08cb","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":66,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"ba5bd361-bdc9-4d9c-a5ab-10cac74b5b8d","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":66,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"7aa6a9b8-2ebd-4852-9d7f-4946567a9daf","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":66,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"0184e1f9-8971-4d39-8fa8-ab55b2526093","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":66,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"b30dfe63-6b75-4009-bb1d-924d988bc5e6","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":66,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"0ee7c812-3dd3-4765-b222-f0bb1a36d1e3","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":66,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"9699a37b-08ca-43c7-bc64-09328d4300eb","block_type":"box","text":"II-29","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb0a9e6d-7359-495d-a1ca-e020881ff595","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd12c084-eb63-40e6-bbe7-c750cf2f6b07","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":67,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"3570d949-4c5f-43ea-b09c-44b2fa283c36","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":67,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"797a36f4-52f8-4c6f-bf42-3ddaad3c9e6b","block_type":"box","text":"investments.","page_number":67,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"a198ae1f-22f8-4e4d-afbb-437df056056a","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":67,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"e1585910-5480-4bff-bfb5-0cfe1e2c4b08","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":67,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"04d6d0f5-543b-4524-9025-615f5aac55ed","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":67,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"49aa2951-fb5c-4774-8347-cd7a05c31553","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":67,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"71e47c6d-7816-4aec-8143-bce23c40d2f9","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":67,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"491a6c25-40a5-45d1-878d-eba99bfaf330","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":67,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"78afcc07-5ed7-459f-8c1e-02def21f656c","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":67,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"864e6946-4a6f-4380-8d3f-179354176574","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":67,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"a111d165-97ca-4a31-a8e6-9ef893d9bfb2","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":67,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"599873eb-f5e9-4092-a1d2-7488251abdf6","block_type":"box","text":"States.","page_number":67,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"2cba7560-f124-4f65-916d-26db87c497c2","block_type":"box","text":"Publicly Available Information.","page_number":67,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"d41bf445-7362-4d05-b70a-e25eb79d9af1","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":67,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"35ae9759-e32e-4949-9f85-6f7f04e1649a","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":67,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"e050f2f4-a479-42c1-b9d8-234c7a14cf82","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":67,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"a9873a1c-dc8a-43ff-af76-931ceb46e6f9","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":67,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"42259dc0-33dc-4acb-a5d0-957a1ec61814","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":67,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"4021fb72-f484-4f14-8e61-e5d88f538246","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":67,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"743620d2-83d7-469a-b3c3-1bf4d87c6bf3","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":67,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"e7055196-632f-4ce6-b18e-5eee3ac5c2c2","block_type":"box","text":"United States.","page_number":67,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"2b984069-0360-4874-bcbe-2ce1392a460d","block_type":"box","text":"Settlement Risk.","page_number":67,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"8db88197-1a51-4d24-8f9a-d4ee1fabbe98","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":67,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"c2a1c6f6-bc91-4926-8fba-d0bfa8ad4bc1","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":67,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"3bbd20e9-baee-4add-b603-ea5b02f691ee","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":67,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"f5040bf1-981d-41ba-9896-da12b4bee615","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":67,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"826447db-7098-498d-9bdf-c56e4a0d16b9","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":67,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"6901063f-5707-461f-ae77-2a261397a07e","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":67,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"b7473896-cb1a-47de-9990-a9dfaa247f93","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":67,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"5039210b-3d24-4e30-bf22-7e058c33d7a0","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":67,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"9bf81a93-6c88-46ea-b6a5-11d654a8c4b2","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":67,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"ad78b8f9-01b4-45b4-8178-7d8d03f194e8","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":67,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"5c5b43b5-e387-4f65-94c4-62fd1593e6cc","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":67,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"77e4560f-f736-48c9-975a-a758e7c84d2b","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":67,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"bd53b951-db98-4fdd-a8bf-6e2f14df7d9b","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":67,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"218b7978-3668-495c-b0c4-c78beffc8198","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":67,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"977fe1ff-34e1-45e4-87b5-867e39d78c6a","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":67,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"f621856f-efce-4579-a907-0d8c6d61a9ac","block_type":"box","text":"Sovereign Debt.","page_number":67,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"9d721eb8-231c-444c-b5ae-0ddc728883c0","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":67,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"22a131f6-6f68-4442-a012-492dd1443ca9","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":67,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"6c62c6db-f080-4b07-aaac-45138a0c691e","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"557e39ae-3d7a-4200-b0d9-23579f588258","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":67,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"82715164-1bfd-4f75-8aae-98788206de58","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":67,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"3361fdcf-ef2d-46e5-bcfb-e7c69b6e14a5","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":67,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"4b084996-9536-4915-adac-b7282eb32431","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":67,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"86c49c4e-37d6-4a1c-b1b7-cf8613b2a6bf","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":67,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"5f29f62c-917a-43ef-85e0-bb1215ca99a6","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":67,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"1061c6a9-0cfb-4ab6-8a9a-84081418e978","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":67,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"4e8965f8-46f7-49d2-ab8f-1b7ecdafe1e9","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":67,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"9c6c9b52-c4a9-4ffd-9cd1-f702f0777755","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":67,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"aa9e3122-224b-462a-a5a6-040737e84e30","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":67,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"f3369ef3-4054-4dd5-9879-e69b8a6226ee","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":67,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"3bacf65d-74e9-458a-b6f7-7c2b15c4366a","block_type":"box","text":"debt.","page_number":67,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"3485af87-5f95-4527-86f9-3a1f80ec35ce","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":67,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"7e0b365a-7257-4b12-bfce-f52b6ded9ae7","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":67,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"150c9a15-ad87-403f-9291-0d21a7912e18","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":67,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"6961db1d-8216-4c79-8c4b-00c0cd158df5","block_type":"box","text":"II-30","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d58fdf7-76ec-492e-8c4a-ff9f77c88215","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc3402af-87cb-4c75-a49b-32766fe193f0","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":68,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"92a6570c-daae-43f9-bd36-a985dbb2c023","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":68,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"2604983c-9e68-4534-9d17-488c3a74a748","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":68,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"ae4b4a65-1f4e-4d02-b1bc-5539f4a1b901","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":68,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"69cbea96-7ce9-4a03-ad7e-a320a432ab33","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":68,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"f7cca88a-cb53-4df0-b0a6-d86b816ee6e5","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":68,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"15d65e9c-967b-4fec-a033-a747008ab57b","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":68,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"a2a9f978-cf30-4918-9507-d774f7016e57","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":68,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"68f817c6-9c93-49d9-a1b3-92fd843c660a","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":68,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"1feb7db9-717d-4c58-b205-708f909cfdd2","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":68,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"4418ea9f-22f0-4279-afbf-d1d65e9b7f37","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":68,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"f7209541-20f2-47ba-9fb5-526e5346d8df","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":68,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"577caa22-7ece-47ea-a056-70e0937e4f20","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":68,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"59c96509-f2b6-45a6-9690-fbeb37c735b5","block_type":"box","text":"in the Fund’s net asset value.","page_number":68,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"3e518385-dea9-40d3-b1aa-e81fcc2ca41e","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":68,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"2ff5f650-4857-4078-8c26-476f43803846","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":68,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"25d42db3-7fc7-43fe-8865-4208153a2ed9","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":68,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"7aa5bd86-8361-4483-9bee-9467de0bcd14","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":68,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"2d719b32-6be8-4cb1-8416-1a9c098c10fe","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":68,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"0eafd954-66c8-4d38-b80e-68c8b3cf0773","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":68,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"9cc029b0-b04a-4854-b495-43552168f7f6","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":68,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"160b37fb-cdf0-425b-8a6c-2c7006635479","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":68,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"a13b08c3-e621-4030-bc31-903fcd711d61","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":68,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"38251f11-f007-4ed8-b06d-f4af59d0c5c4","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":68,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"228c55ce-3cce-471b-af81-8e55de83cd53","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":68,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"41554c37-1305-4a89-990d-bba0f7ee3eb6","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":68,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"8a8bdd4a-4c1e-4dc4-91a3-1865c0bf363f","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":68,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"8affff5c-e610-40e3-8c10-261753c2f15f","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":68,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"c32a642a-fdf8-48a7-8a4d-7a5ca95e48ba","block_type":"box","text":"Fund may invest.","page_number":68,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"3dc6efd8-6c39-4e39-81e9-3d2410588f72","block_type":"box","text":"Funding Agreements.","page_number":68,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"38246f6a-435d-49bc-b067-f67b013f5d79","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":68,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"3baa8828-d04d-4351-8e1e-2f4891ccc023","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":68,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"ff1cf0de-422c-4016-a0b4-36446ec65169","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":68,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"406d2e5a-90ee-49a1-b546-3cb5585ba4f1","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":68,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"28bf08be-2553-43dc-89e5-d4eb0707b3de","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":68,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"651c19ff-05ed-44ef-9cad-816a2d1fffae","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":68,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"afc4e979-5e5b-409f-83b0-d892f517804f","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":68,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"422963ae-95b8-406f-b08a-c7e69a0b32eb","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":68,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"4a36f702-ebfe-419a-9d9c-c6dd76ea322d","block_type":"box","text":"Guarantees.","page_number":68,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"a69fb3fa-84ce-4389-8577-19fd99535397","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":68,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"a9846bcc-9247-49bf-af3b-1f57f1617233","block_type":"box","text":"issuer of the security. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":69,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"14918017-6d6f-44ae-86c8-5870386c36ee","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":69,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"66b68a1d-c8e4-4256-8e03-2a4195cd79de","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":69,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"9a12d8d2-e7e1-4678-b260-c5c736a4adac","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":69,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"b855e5d2-2345-477a-b433-316287c5a13a","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":69,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"ef13aeb9-fec8-4141-a26d-67a6c74bc641","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":69,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"f60602b6-198d-4599-9790-3a95f9b17a67","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":69,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"64626516-0035-4f43-91a0-419da89e9fef","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":69,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"727dadce-e621-4a0d-8787-e6dcbda71311","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":69,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"a33b35d0-cd2c-429c-8eea-b550e89fdc37","block_type":"box","text":"complying with various new or existing regulatory requirements. 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Such securities have the effect of providing a degree of investment leverage, since they may","page_number":71,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"e3d86efe-992f-4c2e-b6bd-c35067f6308d","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"2028de83-cc67-41cf-a796-c4ba72e065cd","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":71,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"c5306a1b-1604-415e-8acf-e81ef1e84e9c","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"16fb0317-707a-46c0-ac57-635c93e15725","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":71,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c0be35ea-b66b-4df7-989c-85fb5039177f","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":71,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"6f1ec706-4d3d-4404-a129-3cdeb4cdae9e","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":71,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"3670749c-23bd-47a1-9f37-549a3e96b1ed","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":71,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"02ef10ba-275b-47d4-8a00-bd0523beee6a","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":71,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"e1cd454a-78a3-49f7-8d82-a2035e49b6ed","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":71,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"3a46893b-744c-45d5-8eeb-22f4675ad69e","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":71,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"9fad80a4-1cba-4c8b-8935-83b40573c928","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":71,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"2b0ce1da-aa74-4d01-8348-36ef8a39ba95","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":71,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"a5d3b209-6330-490a-8cde-d84ef6520423","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":71,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"f05bcf0f-a1cb-456d-943b-1890807773bd","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":71,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"22faefaf-1c30-4da7-8dc6-1d4788e39100","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":71,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"7ad74c19-9066-4055-aa38-0131a43239d8","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":71,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"cc6295d4-3e09-4501-95f2-7e28795cb756","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":71,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"fa084e9c-4a3d-4a57-83c4-efdcffe058ce","block_type":"box","text":"Inflation Risk.","page_number":71,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"0188ad60-bc98-4132-8093-874c208b217e","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":71,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"76b84de2-72bc-4d01-8578-d16cddafd4d0","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":71,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"0ac137b7-aca5-43a8-84d2-89d6740f271b","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":71,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"397d374c-2b6a-4884-8dea-704c6be3e4c1","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":71,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"1b6ec0a0-4035-44ef-8ad6-b281ef3c688d","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":71,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"5c4da2e2-6f73-4384-855d-dfdc6c912c37","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":71,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"61f4e8c2-7461-4423-84f5-124fdd0915b4","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":71,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"6fee4734-b521-4596-9650-6670eefe3a86","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":71,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"23de95fe-79b8-4858-b455-2a5cdfb28d57","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":71,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"988827a3-55e3-4e23-a6db-73dd7d3de118","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":71,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"2bf6cfb3-3ed7-40e2-a006-03fbb3f48da2","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":71,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"2893c768-5a29-4b83-ab92-cfbc67a71a1a","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":71,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"a7e3ce9a-4ab3-4933-a477-da6a219c7bb4","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":71,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"e6455612-1d20-4176-9b42-8ab5a3380ac6","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":71,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"2c11face-67a7-460d-85a0-35117a8efd35","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":71,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"8475d669-5e74-4234-b190-457cdb7fbfab","block_type":"box","text":"II-34","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de7b8e0d-60d2-4d23-add6-e303ac328ac9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a740916-fa46-4a1e-9091-11e0d211cd27","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":72,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"d1261c2b-6d31-4da8-810a-e4e57d4d5f46","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":72,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"568ed07b-1c9b-42e3-9cbe-840874fd2f79","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":72,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"5e6a3415-6bac-4425-bda1-85a6bfb72705","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":72,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"dfdb8fca-6ee6-4b09-ba11-d6d488792223","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":72,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"3bf091ae-5fff-4ddf-bafd-eea2ba1d0993","block_type":"box","text":"be available for very limited periods.","page_number":72,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"1a75e41b-76d7-4a44-83bb-311e171e1b5b","block_type":"box","text":"Investment in Emerging Markets.","page_number":72,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"3d82e96d-c61a-4124-b084-7ae5cafa0170","block_type":"box","text":"General.","page_number":72,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"cba9f29d-3c53-48f7-b95b-02b62c946a94","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":72,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"815561de-0cd0-4588-811e-b7e02376d7ec","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":72,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"07b90b2d-9d5f-476e-999b-c79722b06e5e","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":72,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"806e23fc-a54b-498a-a39a-fa75e0faf823","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"7830ecb1-5ad9-4b31-9b02-e14c821a2275","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":72,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"73a5fda1-491d-4bf0-ab89-607e0524e9b3","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"07a96f7a-ee3e-4192-a5bd-5631915098fe","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":72,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"f971693b-1ac2-40f2-8a10-1a6cd9fee738","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":72,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"c9b00c3e-8b80-444e-8f08-a83315339968","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":72,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"1e46c6d2-07c9-42e7-b4a3-8e2b711da6c7","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":72,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"e033baa8-5392-4db8-90c6-60a0d598cacd","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":72,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"bd0cca06-f2da-435f-b8bc-865c2f2ef09e","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":72,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"8097af3f-c82e-40b6-85d1-d097f8a2d107","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":72,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"11b82cfc-7168-40b9-99f8-306e99221978","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":72,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"1c02661c-86e3-4f00-83cc-73ce3bc14dc4","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":72,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"c7d30876-29e6-450d-a2c4-4fc9d2ced380","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":72,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"6dbb12e8-6b4b-4cde-81bd-20ed9a064ec8","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":72,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"4a38cef0-4383-4da6-a347-c9f412fbc06c","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":72,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"5a713476-61a5-44f3-b14b-e2c229652de9","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":72,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"b1f459da-d021-4943-9380-90adc85509dc","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"afad1ad4-2bce-4b10-bcf2-2adfdb125cc2","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"3bb23b17-ac2c-474d-8af3-b7b5ae513aab","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":72,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"d1b87d23-bd1f-41a1-a669-a1109db59b15","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":72,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"1b4b8f3c-edcf-43a0-bd83-e16214cca65f","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":72,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"14f53643-f591-4176-b269-be1b6b2316a4","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":72,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"b89c7311-abe9-4be7-9c60-f31408c18eca","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":72,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"1aff66fb-a4b6-47d6-8daf-f986ee3c9b55","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"f7a1bb07-e5bf-462b-8b94-0933efee60a9","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":72,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"3dd0c77c-6cbc-462c-841a-5a63104270fc","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":72,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"c59048d4-9cae-4e9d-959b-3386983304f9","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":72,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"31581817-e731-43b3-a991-cb311ef8ac2b","block_type":"box","text":"volatile than investments in more established markets.","page_number":72,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c2253c00-c3db-44ff-93c4-8b2fbd4580e2","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":72,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"7f9bf99c-52ad-401d-b442-da84088e67ee","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":72,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"01a1937a-7dd7-49bc-a32d-6f38a971c5e2","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":72,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"8c793f4b-d3ca-4176-ac54-778a756a05f1","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":72,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"3321147a-eda5-43bc-8d15-e31c3cff404a","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":72,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"5bd70a33-8c2c-46a6-bcc0-2dc2520b3ff0","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":72,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"8fa8d5df-17f2-41d7-ba2a-89f9e5b11415","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":72,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"da1cca08-11b8-4014-af27-e87bbf25866b","block_type":"box","text":"acquisition or disposal of securities.","page_number":72,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"28a3fa00-6430-4327-bbae-51e2e557ea0d","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":72,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"d67eb94e-3814-4887-9753-545e99a87b5e","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":72,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"d04036c5-7e8b-46b3-a207-2282810a1b87","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":72,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"c8aa8f5f-a9fb-471f-849b-7fd595f54cf1","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":72,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"27094dda-9f90-46e4-ae5b-e6fa9ae94475","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":72,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"b62ef857-52d1-422d-9475-3da50ea69414","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":72,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"1a76406b-1388-4519-91bb-76922520d0e7","block_type":"box","text":"II-35","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5edd9174-03e3-4821-bc05-710e22bc79df","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c172a426-4336-4bd4-b2c8-c671de786747","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":73,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"fb625247-8ca5-4a24-b741-9d20a55b8a9a","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":73,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"33b8f009-ae0e-448f-93aa-ddd2bd071c65","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":73,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"6acec0cb-4d99-43f7-a31b-b18320ddd40b","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":73,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b50aa7d0-612c-46db-aafe-487dbb4ca5c3","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":73,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"ddedba0e-8e28-4b2d-9405-8b7c0e1fd3a1","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":73,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"855628c3-567e-4817-abac-3c59216f4af9","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":73,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"1b517e93-c808-4359-8111-de52c7d2ea4a","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"25c62d73-a31c-4132-8e8a-29d03e2e9d8d","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":73,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"88ffd2c7-4ce7-450b-813c-cf7a27590171","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":73,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"6fd75421-f4a9-43d9-abb7-5d40aed8ea44","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":73,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"52fda123-f839-45c4-be90-68f4a7f4c9ad","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":73,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"8f02cda9-a14c-466d-9f7f-bbd23551ec64","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":73,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"f25b578c-dedf-4fad-8065-895cd67ab430","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":73,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"d01166d9-807c-4d79-9503-3ac519aead8f","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":73,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"29747e53-8657-425d-903f-1d49d8ffdc73","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":73,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"1727bd2b-1c27-4098-b5fe-49226fff2271","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"f6468296-91db-4b6f-b081-5c32dcd8d412","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":73,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"bc5eb337-55ff-4b95-ad2e-aa2ab818c811","block_type":"box","text":"performance of the Fund.","page_number":73,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"880b67bc-0252-4616-b91b-9a7dfd4eaed2","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":73,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"aee80bd4-24cb-4c75-9ff1-74286abd8510","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":73,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"2dbcf3de-e468-4766-853e-4b78ee22393f","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":73,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"da292b1e-7416-43d2-aa94-4cab2eaad61c","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":73,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"d94d93bf-e683-448e-a3fc-afe277636211","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":73,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"bb27c2d8-b1bb-43ac-8999-4edd116f8d68","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":73,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"b66e1e90-dea2-45eb-8153-8876ce4461c0","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":73,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"bfe6fa83-4b54-41d0-bfc9-2b27a95d1fcf","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":73,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e5df2960-2eb6-425a-bd28-862e0bc57101","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":73,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"08325dd9-416c-48ea-96cb-009d133b0682","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":73,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"85b3031a-d32d-456f-a496-6b0e10a9303f","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":73,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"85252e43-60d5-43ba-9c84-22795bfefdce","block_type":"box","text":"affected by a variety of factors.","page_number":73,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"17103f5a-c2f3-4f6b-9143-be5b5d288a05","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":73,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"e0139206-4041-4d32-ab1c-04e15008e37c","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":73,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"3db7d13f-0956-422c-969e-e9cf9e2d3512","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":73,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"dd734bf5-61a4-4464-b545-92bde96e8a21","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":73,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"aeb26a95-464e-4a3e-8e2c-4cf51a7f3354","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":73,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"30b095ce-3a46-48d3-9534-b3ec4c481c72","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":73,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"c58ea646-3e99-43da-be0b-e6799eaf9c88","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":73,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"b9843503-551d-4be8-9f6d-c4b42bab3aa9","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":73,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"79b77338-ec8a-44ca-a70e-9e2b3593e2b0","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"57fe3954-5cc0-431b-9825-a084603aaabb","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":73,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"2a832c39-84ac-4076-af38-4fbb67eb814a","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":73,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"ac2d9dbb-b029-47b7-a2f1-80e292e31197","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":73,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"f896a55b-14b4-4116-816c-62ec1eeeb25b","block_type":"box","text":"nations.","page_number":73,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"411637c5-31ce-4b38-b1af-62797a25a4ab","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":73,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"3a7c53a4-4f4b-42b6-a238-7b8e3a0009e9","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":73,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"bfe13583-70cd-4880-bec5-fff6fc3c8549","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":73,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"d49be3b5-81da-4da5-b864-20c72254ad42","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":73,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"735b96e3-62f0-4f0b-9611-749d3334bfd6","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":73,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"c8023016-6881-4677-a742-69e782af018f","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":73,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"90a58f78-8e71-4123-ac5e-4e0c12ca4183","block_type":"box","text":"market Asia-Pacific companies.","page_number":73,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"e6ed733b-6d9f-463f-8caf-d5317be197c4","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":73,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"aba65ffc-d72a-435d-9842-cb8564307d6b","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":73,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"d6c615e5-bbe0-4107-a641-db7a2f129a48","block_type":"box","text":"services for such securities outside such countries.","page_number":73,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"ae422287-57a9-41c8-84d1-5d25c7b6e375","block_type":"box","text":"II-36","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aab8f058-d30c-4c8c-a83b-cb9d85b38487","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5a89a82-0c84-4f65-8ed8-889e5e59ed7c","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":74,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"1861bb0d-a435-4f23-94ee-437734416a4a","block_type":"box","text":"to commercial banks and foreign governments.","page_number":74,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"08080184-08c3-4666-a318-a9c0ce79f9a6","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":74,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"39122900-d52e-4b0d-9578-9c602617ede1","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":74,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"3cea5740-9c96-4af5-98f7-7e1109630280","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":74,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"281f5947-49c1-4d89-a908-900dabc67d5b","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":74,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"07597c19-5121-4544-99c3-05214088493f","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":74,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"7df93769-7124-46f2-a6d0-58d209272d18","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":74,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"11bac2db-16ea-419c-bb27-b5b2ecbf1437","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"a27dc86a-ce90-45cd-ab2c-8e48711d7f34","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":74,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"16ddf93d-f795-4ebe-bbba-688c5af3544d","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":74,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"d6627782-4df1-4414-a38f-803c2a290141","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":74,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"4e559d2f-265d-42c1-852d-1660054f1bdd","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":74,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"d23b484e-209e-4bfa-baee-722f3b1814a5","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":74,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"74eb0997-ceea-48ca-a532-dfd14fbf1436","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":74,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"d3f86cb7-848a-4cc7-84a3-06f3961b9ad5","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"028049c5-8b0d-4930-9e9d-de0585c7d65e","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":74,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"732f2f97-3958-437f-ad89-3d25ff60b137","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":74,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"16d11d2f-8cfd-4e2d-8422-70cb7aa4a6cf","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":74,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"6448941f-b29e-4135-8f51-7f9381c316cb","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":74,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"36a1cabc-5003-415c-9049-8badca77141e","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":74,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"f4e929df-d1de-4f00-abe4-def87b6490e3","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":74,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"78c1e491-48dd-41af-9e06-aa067bbd91e0","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":74,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"8ee92891-da4a-43a9-a980-a50ae8322452","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":74,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"99647b25-aabd-484c-8367-a1829b416dbb","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":74,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"f96102a1-05b6-4b10-8284-eaf2f43c7c50","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":74,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"1d80bb92-4ae3-41e7-b107-12e437b0171e","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":74,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"1d758a73-ac6f-4e69-b424-303a7d3a440b","block_type":"box","text":"investment at that time.","page_number":74,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"9bc28aa0-ea27-42f6-983f-844dfc1f88a3","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":74,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"105e3e03-ba8f-42a9-ac0f-3ef5f60969cd","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":74,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"4e1d72c4-3d57-4efc-9925-1bd708cb7f38","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":74,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"b163194f-7e5e-4061-972d-f9613ed9f7e1","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":74,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"5bbc08eb-f7da-47c1-8811-d57234700cd9","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":74,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"5e5622ea-87b8-4e5f-be57-407023eb6b6d","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":74,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"ff6e82b7-a3de-42b5-9875-aa6414b659a4","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":74,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"18eb7234-9851-4664-98fa-8bae9378d5c7","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":74,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"009f6e26-e4a2-4064-9959-f66aab9b99da","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":74,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"c673ff25-f289-4637-a0e3-4758375cbb6f","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":74,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"18c08e3a-9a41-4dc0-8131-3cb6dc419ea1","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":74,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"b0422d63-f81b-4f72-9291-b245b87127cd","block_type":"box","text":"government).","page_number":74,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"8bbb029b-4332-4d61-9fa9-26a3d239702c","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":74,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"09aa67cf-96c2-40dc-9fb7-95ec8744e7a8","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":74,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"f07e37d2-2bcc-4e28-a390-70229db703af","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":74,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"99ad500a-1284-41a8-8756-f32150c01afd","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":74,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"4cf23e96-25f9-4ab4-b6a5-b8b7fb6a1990","block_type":"box","text":"foreign banks and other financial institutions.","page_number":74,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"71c4004c-1960-40c4-ad30-3624ee82bdd3","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":74,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"4d9db039-5827-43a6-b247-27a519a5e3c2","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":74,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"235588e9-4176-4d05-9927-d95da02fda30","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":74,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"21b14cd0-1da1-4fdb-b424-143a5d254647","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":74,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"e7144195-91b0-45ea-ab2f-cc71401b2a4f","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":74,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"e87451a8-cc77-4f28-a601-caef0c848f4f","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":74,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"01d2e9cb-9053-40bd-b566-60c9e9ae6174","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":74,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"beb7fcc4-bdb5-4558-a44d-084510c44d22","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":74,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"389580dd-9c9f-4856-8e20-5875645b233f","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":74,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"01ba90fe-fbd5-42b4-9c5e-7903c8fc01f9","block_type":"box","text":"II-37","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78070f68-bc75-4812-9c3a-a714766353d8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfbb30df-170c-4a06-ab62-ca7adc29f918","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":75,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"648e589d-8f20-4a8c-b5d8-4c5d8ddde493","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":75,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"37f49d8b-c410-4b51-94f9-1d7728be9ea8","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":75,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"77802eeb-45fe-4929-89aa-5bff2fbc43e7","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":75,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"6ad3667e-0634-44e3-a64f-70683f29a6c2","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":75,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"f01aec21-0e07-4d60-b1fb-63fbd46123f0","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":75,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"c17eebf8-dd2b-47d1-8ca6-b62014e55982","block_type":"box","text":"foreign securities.","page_number":75,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"24bbb03e-4156-4754-8d2c-d15de30d0cc7","block_type":"box","text":"Risks of Investments in Russia.","page_number":75,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"d0d4ac1e-a5df-4f9f-bbc2-62ba9ede651f","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":75,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"348f3548-5548-45ce-9ccc-602c730ab8b0","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":75,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"62326136-dd1d-4b9d-8628-a5c4784ee926","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":75,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"109f9053-8b9b-4948-8851-c5471951b6ea","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":75,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"e848e131-11a7-4265-bbfe-8ee36dcd53d0","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":75,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"634d59e2-1875-4640-87c5-d48f5bd5c649","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":75,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"9c588cef-4318-4fd1-bdad-a1076589719c","block_type":"box","text":"developed markets.","page_number":75,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"2134908c-d26b-48e9-80fe-8c9fab0b62a6","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":75,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"61757356-663d-4568-b954-51ae22267030","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":75,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"69976777-8ee4-4e93-867a-f058a8319e17","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":75,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"56333e83-b118-42c4-ab6f-19044318a4a0","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":75,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"689b613d-f1b7-4fdf-9f9e-d0dc2da418e3","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":75,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"d403eac8-7d93-4997-a816-9287c9d248b1","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":75,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"cc42d32d-0d38-4bec-8970-5d37afbb8cd6","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":75,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"291c05e4-8d06-4fd6-af3d-1ce30ddacced","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":75,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"f1cb469f-2078-4776-8a47-cc6393cc0ede","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":75,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"bbde1a18-1c43-45f9-bdc8-eaee92634f8b","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":75,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"d961471b-fe0a-4ae1-be34-cf91aa5117e2","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":75,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"ba5f4579-77d8-4e23-a366-9dac17552d09","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":75,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"07fff9d8-fa18-4e0e-910a-298bff6d23b4","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":75,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"21b63c40-2c52-4502-a088-2306827cac84","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":75,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"7f868611-1d3c-4c0a-8892-4c8d9ecbe6bb","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":75,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"1a10bd27-838d-4cbc-b5c8-66e3f0219f40","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":75,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"b1a456aa-f914-48f8-909a-28987a3f99e3","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":75,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"b19a29bc-8926-4bd1-9fd4-ec1c0bb5bfe4","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":75,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"0a0d31bc-6be2-4b42-a977-f9a6ebffc170","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":75,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"991867cf-a911-4a28-9b41-9c1461557ccc","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":75,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"762403f4-e902-4425-99e8-aed89a7d15ca","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":75,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"1fe5b7a8-bd3c-46b5-a6d6-84450870de69","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":75,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"3e9e12b9-a049-4423-85c1-5d26cef5067e","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":75,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"f286de21-e2f7-44c3-a0f8-54596dc7a7b5","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":75,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"49de17b4-ddfa-40f9-816c-839d138b845f","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":75,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"a4914dde-253d-4878-b6cd-b434a89a0d41","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":75,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"50a59de1-69df-457d-8c07-dc310a6fd4cd","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":75,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"0bc92aa5-91b9-4602-b53f-3e277df21aee","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":75,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"a37761e9-c09d-4922-8b88-bdd996aec930","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":75,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"d667298d-bd0c-4091-91d6-e6e20f3873f1","block_type":"box","text":"sectors globally.","page_number":75,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"9fb0a318-58dc-4f03-a954-24c477ef9596","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":75,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"b7fee06d-da12-4834-ae74-2711738420ad","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":75,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"a922aa6d-43fa-4214-af36-33fe2a7bdf42","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":75,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"82610ee2-70aa-4aa3-b85e-0b5ab54dcaed","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":75,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"85bd515a-5bfd-46aa-8973-e483bfdb4c25","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":75,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cee8d3fd-73fa-45aa-8065-f5321f61fe75","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":75,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"cf85e5dc-4500-47c2-99c8-ef2f81f36fd5","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":75,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"43b63ca5-9a9e-418c-8021-3c434407412f","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":75,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"7f922d9f-79e6-4fbf-80f0-8d48dca12754","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":75,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"6fcbc79a-1b07-4cb8-90f4-b97db286fe7f","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":75,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"47f9b898-4ca4-4115-86f3-70a2500569f2","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":75,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"1af448a4-f9a5-4a25-bdc8-a6376089da27","block_type":"box","text":"II-38","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f2d6a11-c200-4f77-a55e-e0662c6467a3","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f5c9e40-4a60-4b8e-bb2d-694fb94c252c","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":76,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"68820a69-4800-417c-983e-1bcb31a4ebfc","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":76,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"9ca2648c-2b95-41a5-bb7b-e53bb938afa5","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":76,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"bc59e182-c987-4cc9-a28e-26b57644226d","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":76,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"c65fbb8c-64dd-4f5b-bbe4-7353454d123c","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":76,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"c3a22291-4a1b-4b0f-8782-cb5a1976b2f8","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":76,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"31c7497f-b85b-490b-8d71-6974dd82d9d7","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":76,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"fd23bbf7-b569-4d06-a7d8-b9c6032a594b","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":76,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"384fb41b-305c-4157-adc8-c63f58d84ae3","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":76,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"2834c7e8-176a-4461-83e3-a5dff50d7a8e","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":76,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"c1fa8387-94e7-4de2-a9a2-15edc81eed40","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":76,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"5a462a41-a935-4b46-92b9-8588b555b141","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":76,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"8f9f64c7-1a8b-4968-8ce5-fa42d4fd1669","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":76,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c4fbda31-306f-4f31-b473-a604b39d232e","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":76,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"cc5de1d8-8ba0-4efe-bd74-f4c2c818be00","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":76,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"578b11e1-5b67-4298-ba74-ad351c06dda8","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":76,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"9220f276-1c89-4e2a-a588-1d59de6ea0a4","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":76,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"e6af0f59-7268-4ca0-9ddd-99b5ac689c0d","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":76,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"10df0295-7dca-4805-a2ee-c5283a62d713","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":76,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"dbc2c678-7335-40ae-909b-8172b62d6470","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":76,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"0cb7d608-bd27-4e31-aace-2ebffe5d68e6","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":76,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"0ad94217-b5f9-4b92-a431-eeaa4af050fd","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":76,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"04988cc2-eba6-47cd-a2ee-aaa1ea139e71","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":76,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"bde83d07-61c0-473d-a101-00a52ee4d9ad","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":76,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"b7e4f43f-2a03-417e-aa73-e26c7aaf8984","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":76,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d5e4d7f2-412d-40f9-b0da-51b57a2a1570","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":76,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"cb5a9a02-d903-4790-a5d8-e043bb144058","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":76,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"47213ee4-0375-48ae-919a-9c055597b61c","block_type":"box","text":"impacted.","page_number":76,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"3b1e9061-5922-453c-828a-9551f0d76596","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":76,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"73837020-2944-4c6b-96f0-ebe40f8ad46c","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":76,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"65a47aca-2ced-48cf-aeee-562596bcd292","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":76,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"6e78607e-6f6a-421d-9e14-cfe4c1b89bc1","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":76,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"c5e864a4-9555-4345-bfd3-3e46051b1eb2","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":76,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"61465259-6c16-491d-9550-43fa32d0205e","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":76,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"c6af60f7-50a1-4ad1-8a6e-eada6115450d","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":76,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"c432af8c-e380-4be4-b3b2-b5a9dd5b0099","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":76,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"d661121d-8c3d-479d-8e31-17cf801f3f1f","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":76,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"14a2e695-8c31-4fea-9bd0-38be811bca78","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":76,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"b21966d3-cbda-43e2-9c78-5bf49e3fe663","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":76,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"d0a9af47-7f7b-42e8-9112-2be47de05b81","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":76,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"83c0d6d7-76d0-4a81-b5d1-07019c346679","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":76,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"d00d322e-7e64-4c93-be70-e4b1f01278fd","block_type":"box","text":"economy.","page_number":76,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"4d216bc9-fb22-4b24-8a67-644a68700473","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":76,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"76f99701-1929-4d54-ae75-c7ec4916461e","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":76,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"2e47b2c2-4e7c-4c3a-a32f-ccb799421f15","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":76,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"70467b5a-2b9a-403a-a12a-15b0d3de2f74","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":76,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"15aec014-2583-49e6-8ff8-bf8a5458c625","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":76,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"394aaa71-3bfa-488b-add2-87dce6aa0362","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":76,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"da82b355-370e-4acf-9a27-afeb4cb8dae5","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":76,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"61210953-02d7-485b-8ac3-a050fb4e21de","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":76,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"7396d955-a82d-4c5d-9744-5c998ee68bc7","block_type":"box","text":"typically the case for investment managers.","page_number":76,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"b8d1e37c-4a76-4e7c-8b9d-66c3b7947806","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":76,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"05dddbad-7938-4ea1-9599-f231330119bb","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":76,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"78a2e498-4e8f-48e9-b244-f23ff7af1ae1","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":76,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"cf73f90f-fe02-40a7-8657-6a72faefcd60","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":76,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"7cfe5777-65ad-4e91-b716-80a486cfbc4a","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":76,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"6c717333-ef77-4fbf-ba38-bba4200b30f0","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":76,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"129c7b46-63a4-4937-a037-2d0717375e94","block_type":"box","text":"II-39","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40944216-0823-4963-b417-d0e10a338331","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12e95a7a-0109-4b39-a9f4-93dd4a4e3602","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":77,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"038a0c1c-cdb4-4670-8b02-c32428c0e2fa","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":77,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"36c10b39-66ca-4740-a8cb-901612d1f43d","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":77,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"08504e8b-e863-4aee-9dfe-d9708c1905e9","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":77,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"f3766ca2-edae-4298-9195-4753d5636cd4","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":77,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"daea5c96-30e0-48dd-8687-aa5fb47cc476","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":77,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4555b13a-ae31-4bd0-9602-7ffae23ced09","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":77,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"f960c44f-20be-49d7-a60e-645fb98fcb44","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":77,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"a25f98ec-c233-4ef3-a828-9180fc186694","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":77,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"75e48941-ef90-432b-9ee2-32ebd4d48c73","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":77,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"77362ff3-a44b-4887-806a-effa518cb755","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":77,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"c5d03aa2-abb8-415c-adb5-1beee09489be","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":77,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"b23d8280-13e4-43a4-bdff-e016029539fb","block_type":"box","text":"will be indirectly subject to those risks.","page_number":77,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"0b3322d7-1c52-4df6-9564-874f725ed5df","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":77,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"63129240-c7ba-4edf-9b3f-b7bc29310631","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":77,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"83ed7bba-b83e-4415-bace-2af2061f6447","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":77,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"6d5f3253-6c18-4868-93a3-89d2a5ac113e","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":77,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"6256bb3f-cc4f-4000-a34d-7227dec73822","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":77,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"f2a4528d-55e6-4eef-8040-459d190c08b7","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":77,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"21e2eeb6-8f42-4b31-bfc7-ad33cbf3a471","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":77,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"0175b6c2-4aed-45be-92f7-d79f0791f03a","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":77,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"48f9965a-f08f-4a33-915f-ba928dcbd4ef","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":77,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"2773a831-3236-4b94-8580-b8abbac8e085","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":77,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"a971e70f-ade5-4900-917f-8ae155b07115","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":77,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"e11353c3-c296-4326-a0d3-1c3949e9a4fc","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":77,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"44cc6e82-3ffc-4b83-b71b-144da07a997f","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":77,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"bc396bd4-f302-4b89-b58f-0a01f727e3c1","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":77,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"365201cb-14fc-4360-b433-2ddec528dea4","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":77,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"72b72a70-648c-467d-902e-e827a446da64","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":77,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"456929b6-f550-4d9d-8671-e6ff177288dc","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":77,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"cb0b5cd4-b74e-4bc4-9d4e-229607b6c168","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":77,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d2551e4b-9a8f-473e-8280-d28b9a683429","block_type":"box","text":"impact on a Fund’s investments.","page_number":77,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"6e976b66-fe89-4605-ab1b-3922b685bd56","block_type":"box","text":"Brady Bonds.","page_number":77,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"9bf73c80-7917-40d0-90f1-18b5d5bcec90","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":77,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"af5c0a6e-a617-4c4d-aba6-cd48215ba7d3","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":77,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"2f623827-da45-4ed2-b82d-d4aa0e58ff3f","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":77,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"9e80506b-afd3-4029-b543-8a0e338f490e","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":77,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"af22b76b-9c3a-4afb-8898-0dbb78c732ca","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":77,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"1e95289d-4993-4fb5-a776-2fbc51e9f92b","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":77,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"2c0a38b7-bcea-4896-a74c-7347d049c199","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":77,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"987e7e2c-1a01-4137-813b-f3cfc0a31172","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":77,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"7a7a2af6-466e-4a79-bbd7-076db67ba43b","block_type":"box","text":"Venezuela.","page_number":77,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"9bf385d2-262a-4535-bea3-17286cd5f582","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":77,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"17ec77e5-49bf-4723-b4e3-95580d05185a","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":77,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"ee731361-2f74-458f-b61d-ed6c67125ee3","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":77,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"28d6bbbc-6b48-46ff-87b4-8b84c705e700","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":77,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"03879e96-442b-4ea5-9f13-e1a63449a141","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":77,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"d1fdbba4-95ec-4072-8d5b-bb0f1787cd5f","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":77,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"e2777f4c-8195-46f7-9204-ebcc0679b4a2","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":77,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"6d5f43fe-52ea-4552-82dd-cec3fd925cec","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":77,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"0859dad0-f7d7-461c-88c3-3e7ff4026a7d","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":77,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"3dd606d3-b2dd-403d-a9ac-93ff0e6d7e72","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":77,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"d6486456-1b11-41d6-be27-a5e254f58a53","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":77,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"26e05669-35a7-47d0-ab4a-966d4adae310","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":77,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"2ebd6599-2819-49b3-8469-026f282032f0","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":77,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"78c88c09-c5be-4c3a-936b-88174e5434e4","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":77,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"2b828bf9-97a6-4d43-a87c-f97b648fa0b9","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":77,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"36748c0d-12a6-45d4-b658-e08417b5dabc","block_type":"box","text":"II-40","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63e74e11-f686-424d-bdf0-0608991e4d71","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc19d2a1-bd3b-494d-89fa-c3135ce58658","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":78,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"cece44a4-5926-434a-9eb6-517c3c771054","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":78,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d9f0e598-c452-4d73-bc91-ca654855b375","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":78,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"36a4aa6c-247e-4aae-ba1d-43bb96e6ecb3","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":78,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"a5ef22d5-85c1-47c5-87b4-95ebf1ab8328","block_type":"box","text":"China Investments Risk.","page_number":78,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"201010d0-d38d-4106-bca5-b4e2c85d2ab8","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":78,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"3f0d3aa4-618c-4d8a-be13-f172abaa90fd","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":78,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"1fae400f-9256-49ff-884f-9e453f570729","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":78,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"4489de1f-61d9-47f8-a0c6-48361c43ac10","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":78,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"76760b84-5a98-409c-8210-afa8fd384e11","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":78,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"067afa73-2338-41d7-8303-9d54554cb962","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":78,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"b2337a0e-8096-4730-868b-f4df554c888b","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":78,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"b5f8c5c8-0822-4238-93d0-3ccfac7a27e5","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":78,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"8a9b58eb-f844-4f8a-9270-b54916e36c75","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":78,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"47496bb2-a3bd-49d1-a6b7-a3874ced74b7","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":78,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"b9548a0e-879d-4fb4-a342-b35565a00528","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":78,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"eea8c409-c790-463f-a903-24816c630a55","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":78,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"e0f86fc4-1435-4fe2-ae13-2175c6494141","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":78,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4a13abf9-6ea9-4618-8dd5-b2ac267c8deb","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":78,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"9834657f-b99a-4992-8f07-0536020e7c93","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":78,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"827151bf-28b1-408b-a0f9-2d5eeaa6f72f","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":78,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"dcdf7720-eba4-4c3c-8933-c8b477aca6bc","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":78,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"04224688-e510-4e29-8d92-84e1ecc529e6","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":78,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"3736655d-2459-43cf-9fa3-f9a00c8c46a2","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":78,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"8f1d1ae9-0b52-4a2e-97ae-648326d3ded5","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":78,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"65b857c1-65aa-436f-9660-083d2ed83f85","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":78,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"d8454cb9-15c9-4fd0-9e81-d2bcd62fa689","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"2e878062-9fe1-446d-9b51-e6dd4645a923","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":78,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"13da1f02-ce2d-4671-a3e7-d41f3b9ff995","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":78,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"77c5606d-c09e-4aef-ac70-7895d3d2bbab","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":78,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"314ae95a-a9bd-4944-8129-f87639d1102f","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":78,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"3f3c068b-2a85-4e2a-9185-1d26394b6666","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":78,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"feb85fd3-2bf9-4466-b489-7086e485a0c8","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":78,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"96243306-e487-4eab-917f-9151f8a68194","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":78,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"11af0718-95d6-42cb-bfba-5e5d0f74f8a7","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":78,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"3cc22c6a-4b1f-4a10-b94a-56974d5b87d6","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":78,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"7700b90e-c98c-497f-8b03-4b3340ea5ab8","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":78,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"53bf3a5a-20bd-4daa-823a-0c004dfd1941","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":78,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"8069f3f3-ce41-40f8-96ec-a6a5d554168c","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":78,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"af523ab0-81ef-45c0-9ee1-5c19c882356b","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":78,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"3d9f241f-bf41-4c6c-bfbe-abcf637fe0fd","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":78,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"be699865-bafd-48c8-93ba-456b41d6d521","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":78,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"b6da7b42-1ef2-46bd-b6da-0b8c66335bc6","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":78,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"e57fb438-9664-4982-a314-7ec4dcda6d58","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":78,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"1ab443e8-33d4-48bf-976d-196ab38139d2","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":78,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"7ae1fcfe-46a6-4219-a5ea-7c9134878078","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":78,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"fbff429d-4eac-40dd-8e25-357b3951a386","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":78,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"469c06c4-587c-493a-80fd-fa7d3c849e62","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":78,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"ff328109-0323-491c-8bb9-d0b0fc58a355","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":78,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"65d19036-a9b6-4388-b7d3-0f614ca31a80","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":78,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"2b46fcaa-4249-48af-b393-ab09856599f4","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":78,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"8c52ae89-226a-4690-8248-ef75ef8b4e14","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":78,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"263322e5-ba5e-4230-bbbe-8b51d93da089","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":78,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"81f12873-49c3-4a45-9dd0-36fda463f3dc","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":78,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"a535642d-790f-410b-b5cf-f9fb4ec22716","block_type":"box","text":"sub-custodian.","page_number":78,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"a488f4e2-092b-49e9-903f-63ec0db9f84b","block_type":"box","text":"II-41","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"883aea1b-ab25-4689-b4fd-5e358e9ccf7c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dfe81cfa-6769-4be3-b03a-77fe758259c6","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":79,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"a79f507d-44fe-4300-adbb-8fdf8d729a42","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":79,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"f3d296a5-807a-48ef-8b03-dc18c7dba9ca","block_type":"box","text":"on investor protection considerations.","page_number":79,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"57d4ed04-0177-4400-9d1e-9e8981d31b3b","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":79,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"f24b6903-b379-4302-85b0-5569cdccee73","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":79,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"cee5718e-6078-4318-8f50-84b429b38211","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":79,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"1aaa35fc-a0ed-4162-a674-4e4eaa19457f","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":79,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"78ff341b-b981-4a7e-9288-3977bf797f77","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":79,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"4f176d44-4869-4f6e-b8f5-91189748e803","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":79,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"9f33917d-3b23-4214-9410-9007d5c37cd9","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":79,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"87619e82-d6d9-482d-9421-ab47bdd655a2","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":79,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"c46d7a06-783d-4f61-982c-513f0ab20012","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":79,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"6184e49a-b50b-4e05-834e-19abd3286563","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":79,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"a1a2addd-b088-42ae-9472-2c490ca0be3b","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":79,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"a8595803-49e1-481d-b0ff-4852a8096b88","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":79,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"e4925e04-0fdf-4322-bdca-1183a1d819d0","block_type":"box","text":"accounting firm.","page_number":79,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"f991d3af-b425-4d1b-805e-aea1d15f469c","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":79,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"a4dff9a5-0e6a-4176-b907-d1f9d61d2683","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":79,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"08eed703-9046-4196-a543-49f835d9312b","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":79,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"77b9d21a-6f7c-4fe3-93b6-bb3cc6142639","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":79,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"eb462573-009f-4996-9b84-f4868fa1d589","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":79,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"238bd215-f35e-4b17-96b9-7cc3406347c2","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":79,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"7f453f8d-21ae-4ec7-a0be-d0610a59e2a7","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":79,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"e23b4e58-b0d1-486d-898c-494c0dd36658","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":79,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"2e130c04-03dc-4a09-8cdf-4d52f1c52528","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":79,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"90c96073-db98-45c0-b277-ac6bc15adf3b","block_type":"box","text":"RMB (“CNH”).","page_number":79,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"10640df7-c092-4866-bc03-57fb8061902a","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":79,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"dc8e971c-016f-44bf-87ab-4d6f4f788f8f","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":79,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"c49a45e4-8d3f-4cdc-a518-fc595e740b95","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":79,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"440a33ab-97f2-4a42-a684-1850766997f0","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":79,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"4da09c16-0816-4717-9ceb-c842e48f76e3","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":79,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"0b05ad38-186d-41e9-8051-dd0dfd77d996","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":79,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"ba405b67-5c94-45f1-be64-c36f1fbcb3e4","block_type":"box","text":"represent equity ownership in the operating company.","page_number":79,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"0c5119c7-a79a-488d-bd75-c3ce4e5f16e0","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":79,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"f1c403e2-2cf3-4196-98db-dd0eb866b556","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":79,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"0ffbefd1-5720-4e53-99c3-c28ce3955938","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":79,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"9637d211-a918-4924-b7b5-e2937c6526eb","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":79,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"b060d8b1-5161-4684-a7ee-450a608c4afb","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":79,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"287e1708-5475-457a-8d00-e718ab320daf","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":79,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"58ba7e8e-6791-43bd-93c0-d58e587e5958","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":79,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"91507fb8-91a1-4dd9-8e0a-277f67b78087","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":79,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"088b1b3f-ea47-421b-938d-e54f9f9aec98","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":79,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"87a74c14-35a4-4e55-a608-7354007b9548","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":79,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"f83dd9ca-913b-4309-a479-5942ced7922b","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":79,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"d15b7273-8703-437c-8aeb-ffdeee6c988c","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":79,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"e2141f71-1754-4e84-b5dd-9bb38657bad3","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":79,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"8b4823a4-f99b-4a64-b3d7-741e0753fb55","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":79,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"5fbb7a0f-26ba-4608-ac50-8cb8db66cfd3","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":79,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"81679d28-7fcb-4a86-b0c5-be44a0ca6592","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":79,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"ec449a6b-b17a-4e22-840a-3e9c238b1c36","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":79,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"de7b57ec-1f40-4c29-9a4c-d1e9cfe5340c","block_type":"box","text":"losses to a Fund.","page_number":79,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"1ba1b08d-351f-4e3a-95ac-3ea5d78cd451","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":79,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"20d1cf9a-334e-40dc-b099-e268d652ca9c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":79,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"ce603d5b-c2f0-42a5-b2d2-9adfef4e3612","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"f028a5f1-8677-4738-9852-56d176e34fbd","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":79,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"cfee48ea-adbc-4e4c-b869-e47332f8a7f2","block_type":"box","text":"II-42","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bc2ffa0-cfd1-472a-aba8-bb3777c846d5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bade7e46-9b51-4e50-9558-21b79e43c57e","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":80,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"be73430c-b7df-4cba-b95e-4fa6499e9fa2","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":80,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"e53c3730-b3e9-4f86-877c-face82bed579","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":80,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"a529f680-3e90-4998-bedd-be18ef395fcc","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":80,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"088aa0ed-e72e-4e1b-8d82-0e64833b7f4c","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":80,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"6cccbb49-11c2-40a0-bd2d-86a87c1b7e13","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":80,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"997738e2-46c3-4d39-86fd-01165775a067","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":80,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"71b07745-f98a-4400-a467-c0f5dab31975","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":80,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"acf6ce7b-22bb-462b-8b86-144207d7b025","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":80,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"a66ab425-eb62-4c66-bd41-37d1027f8608","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":80,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"76a743b5-70fa-4ff7-bbf2-b4526c34b7c7","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":80,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"0a40f664-a54f-4311-a8cd-fb8a9ff74404","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":80,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"ca609fca-d9c6-4af6-8791-02314be42a9f","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":80,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"2598c22d-864f-483d-bf6f-08b4a041d4a8","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":80,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"3358ae07-3149-4d0c-a9e4-0371ce969ba8","block_type":"box","text":"such companies.","page_number":80,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"05c668f8-051a-4e4d-b5f9-521155cfef06","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":80,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"b9b1e137-783e-4908-a2b7-08c43b2dbaa3","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":80,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"d7f42b7b-d6ee-43b6-a896-9bcb31197865","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":80,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"34788169-e744-4808-90ee-552bb92de3d3","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":80,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"42188209-4dd2-495e-8d86-c60df138fd83","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":80,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"5c9d0265-657b-464d-a345-e82aae477db3","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":80,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"f05c3655-032f-45d7-8612-05779145b471","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":80,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"4d3800b0-481e-4db8-bd20-0584f861a6b2","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":80,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"9da09916-aff6-4174-92d5-763fdfc02072","block_type":"box","text":"standards.","page_number":80,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"27615d64-b70f-48bd-8d31-0107b4947c6e","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":80,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"d1761443-12b6-4c6c-b302-b44a527e9ed5","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":80,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"f368856e-99cd-4038-bf2c-ee1bdfe68f22","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":80,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"c4862ebf-ac0f-48de-87c7-11910aeb1005","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":80,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"d28567c3-adcd-4844-91eb-45f23aa10ad6","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":80,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"233d3e48-6d18-43de-920c-ec601c6df4b1","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":80,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"4266244f-ddb9-4394-ae06-68e83f90d279","block_type":"box","text":"General","page_number":80,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"dcde2c11-aec8-43b7-ba7c-b4aa368db66a","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":80,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"3a2c393f-1d5d-4729-885f-fa4fd7630a9b","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":80,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c67454ca-0ac2-4e94-a4f5-2cabf3ce586d","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":80,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"087189b8-06dc-4d41-9d48-7c643cac9f22","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":80,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"4e44bdce-510b-4843-9b77-43df9fc51f68","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":80,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"c27aabe9-84a4-4b06-b68b-9e94e549fd5d","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":80,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"6ba14532-3b23-4974-98f8-9c24e0633e89","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":80,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"932afcc0-b3f9-4a9e-9263-f8d918e8c186","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":80,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"660f6a3d-2416-4e4a-9097-e374b3a01268","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":80,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"33590ff8-eeee-43d9-a39a-c48d3527e694","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":80,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"dc6e7276-22ae-4e3e-b36b-cf0375a88ead","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":80,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"957896f4-9a31-4dc7-ab6c-719d72200144","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":80,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"55834f92-1fc6-4917-bff5-c31d3978ec14","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":80,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"90394d1f-6f91-4e7a-ac85-9fdc7a87b9b4","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":80,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"c7afd803-5de0-4afa-bfbe-69da3a27fb1b","block_type":"box","text":"company established by SEHK.","page_number":80,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"a2504cec-705b-475d-9f45-f5386ec78757","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":80,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"ff0b54af-0120-4516-ac24-38ea8c0f60a0","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":80,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"cd34feef-7994-4d43-9978-b0fb43e3744a","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":80,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"0b25d954-224b-4410-987b-04b99b5b9114","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":80,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"bc171a79-38b8-4d7c-ad8c-8ffcc88204f4","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":80,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"bba9fe9b-c271-4af6-b7df-1aebad34a8b8","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":80,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"54029f45-2c73-4e0b-bef8-093ad2230796","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":80,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"c1866670-2ede-4239-a3d1-63a2751d35bb","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":80,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"269b2d9d-b080-4465-85ea-a4bacbf18a9a","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":80,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"202fc0d9-fcb6-4c55-8c19-8bc60161371e","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":80,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"00e690e6-d39a-4f07-a313-36d1becc0366","block_type":"box","text":"II-43","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9e3d9a42-0614-486b-a55a-290c7dc9c2ec","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8229c3ff-f292-42ab-8b68-cfad3ac3bf5e","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":81,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"af8facc1-411d-4fa3-b9c6-6cdfa0bc43c5","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":81,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"2a20ca4f-a91c-4878-b690-8280b4766c91","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":81,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"6f4e9a82-ea17-419c-9f3f-2bbaf33ada6a","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":81,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"6c3cfbb7-9a45-4ac7-995a-640fa1c18682","block_type":"box","text":"i.e.","page_number":81,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"faa9adb6-a6a3-4377-a6c9-7ea80f0f6333","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":81,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"4099c21e-f8b5-405f-9f79-d8ac6a326f26","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":81,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"71441796-316d-490d-8113-e479631be605","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":81,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"3ad02238-5418-4c5e-b12c-f030c6d9c925","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":81,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"1084a1e0-44a8-4ca2-870f-22fd058d7d92","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":81,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"f368e440-db83-4ebe-82ab-303fb8bbcee7","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":81,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"fb89859a-d370-40cc-ac11-16c967edf08d","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":81,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"1bacea3a-6f5a-47fb-a8f6-d9aeb440446d","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":81,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"68f76bc9-6272-489f-9aad-22d893e6040b","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":81,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"00c4c68c-88e9-4f60-822f-2a37e672a41e","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":81,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"082639cd-b61b-45e2-b4be-448a6af3a82a","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":81,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"92a3499e-f43a-43cd-8f20-45905a632e2f","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":81,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"cfefe22f-7d96-46f9-b967-fbf070e9d610","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":81,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"012f366f-64ef-41d6-a2ed-772f6cf741bf","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":81,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"22480f81-2330-4c17-88c2-e08aa4af0d08","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":81,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"9e2ec421-5825-4c23-a311-ec8caafdaa99","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":81,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"daf81118-c89f-485e-b4d9-687dde9a3604","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":81,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"115d5097-894b-46fa-a6c0-7b15b7d1d905","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":81,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"cdb83477-2fd7-4f8f-9195-e267dbad2859","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":81,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"de2ece5a-81ea-415a-a353-d7802fdc0d46","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":81,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"46f1a689-f30c-4a3e-b63e-08f6313b8001","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":81,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"a7f9e25d-0ae3-4683-8f03-bf9127bd9960","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":81,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"b8a415c6-77a7-41e0-a5ce-e58a50e7d923","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":81,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"2a5f9c2e-ae07-4655-811f-f1ca554612b0","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":81,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"2b3f9f96-6c2e-470b-b4e8-0d6a83d71b81","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":81,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"c7cbcf18-790a-4ccc-ab93-b8acd421057a","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":81,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"d7c757c4-7925-4299-9429-c906e40cec27","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":81,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"ea83515f-41f7-43ed-a4fe-55c69439defc","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":81,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"1595aebf-5176-4386-882f-e92ccb413862","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":81,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"e362301c-c470-4fc7-a699-9f643aa933b4","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":81,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"42960d2a-5de8-42a5-a6b3-d8c9048c1696","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":81,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"998d4654-fad7-48a8-be14-1c936984c0c4","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":81,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"27ed0aaf-5d3e-4578-8f99-13f16be07562","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":81,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"2a6dbb6c-90e8-4d3c-a31f-15394d97bada","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":81,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e3f82047-23a8-40ac-bde1-00690fa23258","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":81,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"aa63566a-2737-4cbf-8379-2c2ccfb47ef7","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":81,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"d9e1abc8-7075-406b-9898-c344a155701d","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"c1213e0e-ca80-4295-b2ee-6771f2ae2009","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":81,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"e2c2ef51-8d7f-4c9c-8ae9-823bd1102ee2","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":81,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"41aedd28-6c1e-4c01-b8a6-639bc211fa2f","block_type":"box","text":"PRC.","page_number":81,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"bfe735bb-7f79-4a65-9fb2-c68560c5e42a","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":81,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"d5ce197e-a315-44ce-904e-3d00e7896767","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":81,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"42dc77d5-1762-42e3-8f66-9d4221ee988e","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":81,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"2f5785b7-4fb3-4d11-9634-6dd766bdab2e","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":81,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"80b88219-58b3-4fb1-81dd-fe222371f828","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":81,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"03c88afd-2a74-4998-b07a-70c9c78f43c0","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":81,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"d4eec187-6368-420c-bdb2-102110b3444b","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":81,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"90d48a32-5e24-4a36-8139-f06e7f846770","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":81,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"9b146529-42ed-44f9-bb8b-e00861553176","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":81,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"2e7ddcf6-61f8-4ddb-9a77-aea9c0c31803","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":81,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"21529047-19e8-49eb-a62d-e0899a75020c","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":81,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"36f5862c-5d7f-4cd5-bb3d-76babb97938c","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":81,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"c94a2d43-e7a6-4c96-9a53-b4ab8fdc0664","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":81,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"b958cba7-887d-485b-95e0-b98d8a136693","block_type":"box","text":"II-44","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c142969-8cd5-4ef7-8567-06486349c954","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d51d9d62-a06a-4681-a98c-3d62630f2180","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":82,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"3027e0fd-10d1-46ed-877c-af49f808776f","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":82,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"634306b9-4dc2-4cfb-ae02-54358214ef6d","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":82,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"c5bea256-b9ea-4dc2-a6e7-6b7cd7638ce5","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":82,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"8d359032-7ab9-45f2-9074-3c4bd27f2e2b","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":82,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"329b4573-4369-4c2d-934c-505424b39cd7","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":82,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"dc01cf96-a6e5-47ed-95eb-31a3c63adb9d","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":82,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"a7ffd911-3de9-49d0-bee6-7f8f6fcf36e2","block_type":"box","text":"Suspension Risk.","page_number":82,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"bb2060e8-4125-46c7-9cf8-63f9e46c952c","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":82,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"baf112ba-1ff9-4852-bb08-e6d77a254552","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":82,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"717ef93f-1e81-4bf2-bf6f-612924242301","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":82,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"74865997-284f-45de-9667-1934776586e6","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":82,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"e9f70d72-d6ca-4f57-8554-1fb8f7712330","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":82,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"a1af2b78-6010-4d89-98e2-f74006213658","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":82,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"375cd107-d817-4cfe-a579-b65d3204aaaa","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":82,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"a688c704-10f9-48f2-9e80-6a9ef620817a","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":82,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"719572eb-9bc4-4a79-a0ed-4b340c11f442","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"7e7cbfbe-dcd2-4e10-a8f2-8a190b9f1ee8","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":82,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"1879bc5a-79ef-4c64-9810-72f66072748b","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":82,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"6b5d81c5-0372-4cdf-b101-f89d59974517","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":82,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"de8e4577-57e5-4ea2-9416-8b5ce2dea667","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":82,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"3f99d99c-1289-4c6b-a823-7336f23e8751","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":82,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"03c0e2f7-5edb-4150-80dd-d5842e5152fb","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":82,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"f1754316-4adc-4776-a295-9c25f5c264dd","block_type":"box","text":"A Fund may invest directly in the","page_number":82,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"805820b8-c741-494e-bb8d-4913703884e5","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":82,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"967534ec-48d3-48f4-9721-d65173e50e39","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":82,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"001961af-19e1-42e7-95e1-dce1d013f00e","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":82,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"0f5f321b-8e48-4ccd-b2d6-f8c1af195f42","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":82,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"f03bdc06-9ea9-4435-ad30-bb2854405124","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":82,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"b896f74d-5ee0-44c1-ba27-79ef199cc667","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":82,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"77612ad5-5dc7-492d-bdce-9272e984690b","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":82,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"ea824511-eef0-42e2-9cca-c9c87e7d0ccf","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":82,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"ec588527-1cc7-416d-84e8-38f84b46ee05","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":82,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"2fa00f1e-8442-4d1d-bee8-5a508d44c4c4","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":82,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"d4d8c8e9-50b6-47a0-85a1-12616f3d80e3","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":82,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"1e91a214-36fd-4ac8-ae98-bfe4ef7b5c32","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":82,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"145d2e72-f333-4cde-ba0f-cf351d5cfc6b","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":82,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"1eff0d99-d006-473d-a13a-22cdcdcd9106","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":82,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"d616748a-e144-44e7-8775-5e6d999133f5","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":82,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"b603dfac-d5c3-4f5b-a743-abe3b4957b28","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":82,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"0b06a98c-2dc2-401e-95e2-6dccb4e3bd30","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":82,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"a7395a09-b502-4dee-a6f3-98014897bf73","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":82,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"afdd4d1a-9414-4e2a-9fd5-dd6f146540cd","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":82,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"61158f91-8788-4f7b-9f18-97de92471d96","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":82,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"8bd5dd76-df9b-47dc-85b7-bfbf9be99de5","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":82,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"9bc77e76-3f5e-43c8-829a-51f70fc79cc1","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":82,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"69903c81-7c14-43a6-b884-e7db5e4ec939","block_type":"box","text":"i.e.","page_number":82,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"67696636-90dd-4ccf-8cae-f7fd86690204","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":82,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"63d050a7-503e-4e17-ab78-7665610e02ad","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":82,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"ae2e1a25-8376-4634-a6d1-cbe9f2a23886","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":82,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"d2569d4d-af96-4891-8ed1-72405c51650e","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":82,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e33f99c1-8d7b-4301-9e33-6ec88e5e731e","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":82,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"e5855dff-e3b0-469c-98c9-a18b75b4ea4d","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":82,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"61d36148-d1d8-403c-9628-15bc0e8a940e","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":82,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"d0cbf37f-6019-4410-ae57-25f4b7de9535","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":82,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"496f39d5-f12b-4219-9333-116af88695ce","block_type":"box","text":"parties.","page_number":82,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"5b842ead-b59d-4f33-97bf-3b4df7fba6b1","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":82,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"855d4718-5a1d-417e-a6f6-eb67e4b892cd","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":82,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"6534d565-abc7-4353-9b65-e05795a377c7","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":82,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"53af5b33-a529-425c-8d55-4bf8a1b9c27d","block_type":"box","text":"II-45","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"29cdd439-2f93-44db-92ef-5431d3ce0533","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bcd3995e-40bb-4576-ae30-eed73d18cc6e","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":83,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"e5eabf66-0e6c-40be-a6a9-04d9231cea14","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":83,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"5b8b3e4a-1f38-48f8-a078-178333ccdc0c","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":83,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"f84fb100-1422-4826-9f92-e8dbe9ac6e63","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":83,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"24e7cfd7-4f6a-4b14-85d8-7db660378015","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":83,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"435b939a-0c3d-4d8b-8ebd-094c605d1a6b","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":83,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"6f316433-5fb9-4879-91b5-3a14422d2926","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":83,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"e9711097-60a9-4db9-b13b-7427976b65b4","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":83,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"fec9cee7-7134-4d63-b3e5-791f74520075","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":83,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"721b4594-3734-4aba-a82d-2a066bb75d18","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":83,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"b722b347-6f7f-4488-aaf7-caee2ccaa369","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":83,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"41ca11a4-1622-4475-b788-195a7fa0ffac","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":83,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"ef2ba831-45c1-4da5-9bfd-83cbf55b80e1","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":83,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"1bf93670-e914-47c5-b0a0-68861f925c63","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":83,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"31816c7b-b2cf-433f-ab89-cee2f4c31261","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":83,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"b79492c0-2df8-4a7f-9809-154d0fff9371","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":83,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"5f232b77-f919-4f30-8e82-3dbedb89f904","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":83,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"cc5085fe-73ca-471b-bba1-e31cbcc7e784","block_type":"box","text":"performance.","page_number":83,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"fa044ea5-adee-41ff-893b-0c4e3beb5611","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":83,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"7f297abe-6290-4755-a7ce-9bc27cd08922","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":83,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"e1061c55-a969-44eb-8717-3b5bf7072cfa","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":83,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"4969b370-cfe7-4fe9-bc17-98a1174f865c","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":83,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"0ae57807-15a6-420c-b5aa-521b31508347","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":83,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"96c7323f-16da-4a91-8e4e-c24a9fde2927","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":83,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"746d7647-772a-48a3-b100-2858f9cadfb8","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":83,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"b244c03d-bd48-42b6-9a0e-e5ef289c66ac","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":83,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"633707e5-2333-4ce2-ba00-348fd662691e","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":83,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"099158d4-0dbf-46cc-aa0a-0b852690542b","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":83,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"41732b6a-3b3d-4351-aed9-4a14c6f638cd","block_type":"box","text":".","page_number":83,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"721612b3-86a4-406c-b6ee-e9d1ab84996a","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":83,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"b3d713a7-9271-40a0-8fee-c3683e477acb","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":83,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"065f09aa-0a62-4f93-9dc0-7ef44110fc03","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":83,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"93c645d9-4657-43b5-8d17-d16d66e20611","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":83,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"2d5094f8-ab13-4e77-833a-b0288a06a0ed","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"e12f0563-8995-4a8e-959b-2d8bba2f482e","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":83,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"0b30632e-f291-422c-a4df-1f42f67fde73","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":83,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"be9cceec-3f8a-4858-b7e2-a752441bd954","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":83,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"c617b0c3-66c1-41da-bab2-8d314dda1960","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":83,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"fe2b78a3-1562-4537-8a63-97569e5481e5","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":83,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"893c547d-c5c7-41ef-94c0-19e5c1ef620d","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":83,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"e7380ccf-b0a1-4021-ba09-09f32ba01184","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":83,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"6ac9d837-32ef-49e3-91e5-3be4548d1cc1","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":83,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"12824f77-d882-420f-afd9-6c9eef3b4710","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":83,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"479213bd-6606-4096-bee0-9c0fd3b7f86a","block_type":"box","text":"without notice.","page_number":83,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"73fbdff9-91ee-45d7-8b58-9e200ba9cd6a","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"7080e3aa-7019-4baf-bee8-7b5e3b524568","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":83,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"d2bb0cc0-d739-45e4-aa61-673fb3792e4d","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":83,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"0face1fe-28b7-4db9-93e4-b87fd7933048","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":83,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"d9c7fe44-de30-4b4f-abea-623b8eaf23a6","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":83,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"39b6d77b-b057-4060-83c5-bc9a5e814285","block_type":"box","text":"December 31, 2027.","page_number":83,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"1899b61f-5adb-4ceb-8a24-f6ef0bfa220e","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":83,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"fc96c1c3-229f-4039-9da3-fe71670f0ce9","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":83,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"3a1f241c-e2e1-484c-903e-c8b53bef4e60","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":83,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"6d39dade-5b99-4e96-96ef-8476dd858973","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"ef29cbc3-4c31-4d55-b66c-98428dfc4586","block_type":"box","text":"II-46","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6d5b8e0-0cda-41de-b20d-7523a5b96fbe","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6577a28-cb03-4785-a4a9-c483b35b131f","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":84,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"6819ca8d-a836-46bf-a725-89362fcb1853","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":84,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"768c973e-ba3b-4832-86ba-5896689d3f8c","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"82cd46cf-6d89-4592-bf98-1a15f88c57aa","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":84,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"10b4d3dd-dfa0-43c1-aa07-f6a4f0b7e1e1","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":84,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"c28489de-2d2e-4695-82c0-6556f8a77c6d","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":84,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"e262e0ff-8143-4c0d-8619-9531a68e4c4d","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":84,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f2083928-dd46-4dad-bc9d-9ab73ad63beb","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":84,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"7f4dd1fc-5fc0-409c-8ac6-c38e09ad651d","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":84,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"b73cecaa-e725-43f4-a0a3-69c6d608c08b","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":84,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"a9e1f69c-1ffb-4b31-82ce-9c7b0cf7efa1","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":84,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"e5ed81be-e759-4380-88ee-79b347f4e182","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":84,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"2a7c7ef2-62e6-4a84-b6f9-7131305d55a9","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":84,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"43776795-89b1-4018-9710-76d94fe20345","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":84,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"5014ef90-efd7-46b8-b8da-6aa2c8c7c50e","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":84,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"b42399e2-2c8e-44cd-af7c-0714c828eed0","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":84,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"bbf44b30-83aa-4eba-b7b3-b826f6468566","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":84,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"8199ff9c-7fdf-44d8-bfac-291b70069119","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":84,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"2fcfb8d2-a2ee-426f-bdf2-461270f73a70","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":84,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"1a221eaa-ef7b-41f8-acb2-f6d7c61a0d2f","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":84,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"3a7112f9-4d66-4537-8cc8-eca6b6c0eade","block_type":"box","text":"the PRC in notifications.","page_number":84,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"dbee9e8f-a4b0-4fa6-bb65-2e613abfd11a","block_type":"box","text":"Investment in Other Investment Companies.","page_number":84,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"35e51ba1-50a1-427f-b6bc-3bcd87242ce0","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":84,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"1572cb76-0dd1-4897-8c26-b4d83671a953","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":84,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"b86569fa-2c3b-4ace-9b54-62f1848baae1","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":84,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"82f9d474-a9bd-479f-864b-3257fb65718b","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":84,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"920d9076-d8e0-4504-9910-d75dbf101e23","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":84,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3aa0333e-c22a-4bd0-a419-1e0283d752de","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":84,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"51526492-cfc7-4006-b95f-0528736a2023","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":84,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"781230b5-549a-4bb3-b009-93450071f7a6","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":84,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"9374b48a-ab83-4b13-85e9-e59c9c3b2190","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":84,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"63d54702-5b7a-43d6-93dc-a2e823c67e7f","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":84,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"72ac16fa-1b8b-42c7-a6a8-08fa552684f9","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":84,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"382e4fe2-2e5e-4c10-afea-a371bb428c85","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":84,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"a1799181-ccaa-451e-b308-00a0b8dd7f7b","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":84,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"aaa608c4-3790-4507-aa43-53ea9fd1eee4","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":84,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"13d95b85-4cd2-4d28-b9ed-9df33f389b3d","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":84,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"49ac6ce3-51f2-416e-9be6-b4847ada4b3a","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":84,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c0a24a34-318f-49f8-89ae-107d10f2bbb8","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":84,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"efc192a4-6d05-4383-88c1-85895d9c36c6","block_type":"box","text":"subject to certain conditions.","page_number":84,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"91c4d3ab-d32d-4df1-ba3b-e9c538ab8b96","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":84,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"337faec0-45a5-47ee-a722-911a9da5a9d6","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":84,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"df6c1e20-14d7-4e22-8b7c-799441e24f92","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":84,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"d1e961ae-7ba4-40e4-8f47-685f8506f851","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":84,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"d8e3ab01-bddc-43d9-8dc9-693e2f4176c5","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":84,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"f6d81b6e-2acb-44e5-8c5f-5f70715f0bec","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":84,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"c152cb01-0fa7-4545-8ff9-375cbda896d8","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":84,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"a4dfb579-f668-4d73-bbdf-07251e0e38f5","block_type":"box","text":"loss.","page_number":84,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"4cfaf572-aa71-4ef3-b55e-bdd50269d953","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":84,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"189056c7-f1dd-499a-9628-cc46f6b4577b","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":84,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"7d77cd9e-0279-4ee2-ac82-0807815a4086","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":84,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"57855016-e92b-440c-a428-a61c130639ee","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":84,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"e532d0fe-3111-4b1d-b1f6-dd6927f11de8","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":84,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"0f14200a-9e7d-4f8b-9446-3eda7ad5799a","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":84,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c1390b42-ef05-4d98-b02a-f0b3e2554fec","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"906bc138-c018-4cee-a15f-434a58e0f4c3","block_type":"box","text":"II-47","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14f20a0d-968a-4c29-a978-205c7fa668dc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6dfdfa69-22b6-4950-8899-f800cec3e874","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":85,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"27e116be-e0bc-4fbd-bcf2-11fd928c4096","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":85,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"67c2c38e-a501-460e-a127-d222d9ec1840","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":85,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"d21e2062-6610-4662-b829-019c9f3ccd51","block_type":"box","text":"assets.","page_number":85,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"ecac130f-4be0-4fcb-af03-cadb37560e96","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":85,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"10b5b682-1a60-45cd-90ca-d150c31b4b08","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":85,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"9a224743-8039-4e69-ab30-07c8d6759e56","block_type":"box","text":"e.g.","page_number":85,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"8aca0d5d-e588-45a5-9661-c24596d71693","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":85,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"e837b107-5b8d-4626-862d-1963d767b12d","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":85,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"bac85bb9-9e13-4593-84c3-f0769010217a","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":85,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"16b5d45f-ad4d-475b-86dd-c46bf7415db5","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":85,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"b9487a16-8957-44ee-b93d-cd7ac6751594","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":85,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"55a8c74f-e2f2-4b18-abca-be98df518058","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":85,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"2ad223fa-6616-4f4c-955a-38532886c579","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":85,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"ddd5fe43-7c87-4d49-bfc4-33f59cfcb253","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":85,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"484b5ba0-800b-457d-b77e-3682fddb18db","block_type":"box","text":"countries.","page_number":85,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"5ab4acfe-00e2-42a1-9fb7-8adadb881252","block_type":"box","text":"Issuer Insolvency Risk.","page_number":85,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"c02fcf34-2d67-46af-8028-34e30ef1d9e7","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":85,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"47f44203-cd83-49a0-ac4c-bf721aed18df","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":85,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"21d04fa1-9d1a-4079-8ed1-5f4cb0d5a71b","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":85,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"068c9503-5916-46e2-a334-311cbb6507e0","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":85,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"e287305d-73c1-4715-9129-f034e82b34dc","block_type":"box","text":"issuer uncertain.","page_number":85,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"d3063674-507c-4963-9a6c-e7824598f911","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":85,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"e6d55038-dcae-4f30-9fef-3b351a029ebb","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":85,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ffd7da12-1019-45fb-bb3a-8d3c9bfa0310","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":85,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"e0227ddc-b6c9-4b32-bc21-509be0e360e0","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":85,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"0af25e2a-9b9b-4ce9-b783-70ace362c6ca","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":85,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"0d7e5942-b3db-4e7c-a709-64792cba784d","block_type":"box","text":"eventually be satisfied.","page_number":85,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"6f2b50eb-bc92-4254-a340-8b4856b5173a","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":85,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"42a6f34a-698a-4553-865a-fa5dd6950aa8","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":85,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"3c28b03d-8dbd-4b1a-a44b-8991a741c9a4","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":85,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"a3b91ff6-26c6-4338-a1e4-6ce069d5d690","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":85,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"6eb397cd-18de-4d29-9312-02e055f8e44e","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":85,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e3acbe68-62ac-4b62-acaf-18a4fd59d38f","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":85,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"b410ead4-0f16-44a4-957d-f03ba2a77e66","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":85,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"0dbdef4e-2a29-443e-b964-b0afe1ea1bd6","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":85,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"b9023daa-f3a1-444e-904c-cca3f102571e","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":85,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"16a81e39-00e7-425f-b682-ce5202bf5547","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":85,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"027066ea-2838-44cc-923f-a08cfed9edd9","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":85,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"10c5db3a-ac9c-4ae0-b30c-eca88619a73a","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":85,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"90a0b292-44d6-42a0-abfc-d1304783128d","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":85,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"f64b087a-9ab4-425c-b5d8-c37e0529d4c9","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":85,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"822857bc-c9a4-493a-94f8-49313762a4b4","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":85,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"da6ae767-8d4b-4b86-8d02-828a575df80b","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":85,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"ad0c6b29-d9eb-4f98-bbdd-549901046413","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":85,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"d3868db7-eb07-453e-a257-f94a6399e135","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":85,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"b1a40a05-761d-4014-8e48-f8a941220c2c","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":85,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"0fa8f50b-82fb-4394-8564-482f9c1cb56f","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":85,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"d78e15c4-d078-4e93-a2b2-0278ddaa19da","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":85,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"225934f7-ec1a-48a8-a9dd-59a71e721642","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":85,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"aff7f3cc-7d47-4f2c-af7f-715a06a32346","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":85,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"f4ccf7bc-d0c3-4abd-ba23-af2a0b70433d","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":85,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"2b07c3d4-e093-474c-ab85-2280f3f45450","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":85,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"5ee33a6d-2b36-42e6-b9c3-89e0bd5e2db4","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":85,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"83e1e4ba-6f07-47cc-9a19-1b4119609f02","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":85,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"7177e7d3-a13f-4971-ae19-5894978bc32a","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":85,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"e1094d76-5ca3-452b-aeff-ccc62fa0c368","block_type":"box","text":"that assumed generally by an investor.","page_number":85,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"21ffcd3d-e2be-49d4-8a45-434fb98628ea","block_type":"box","text":"II-48","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47f6e535-59b0-4b53-b1b9-84740e74854c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee760fd9-9faf-4799-becd-1a6810c38a6e","block_type":"box","text":"Lease Obligations.","page_number":86,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"485d0c44-d3f1-43a9-80ae-107975102753","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":86,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"f3d0ea04-c922-47b2-971a-59c8a8a64f08","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":86,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"bcbf133d-0150-46c9-b08f-21b50bf82912","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":86,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"51cea5d4-27fd-47b7-a030-08f5d23e5dd2","block_type":"box","text":"Life Settlement Investments.","page_number":86,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"f2bc2efb-fa4d-457d-b333-2cc62dbf48a6","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":86,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"8e545c88-7da2-4afb-9550-1ec3f48c3fac","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":86,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"d6b17a9a-899e-4caf-a6c6-a421fd2e410c","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":86,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"b328b351-9740-4cda-b3c5-10814325d183","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":86,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"431312d9-5a70-4952-bc5e-6c05aba78803","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":86,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"1b4a7ea9-5423-4f38-9458-4833bef050a5","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":86,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"043c39af-b8e0-4eb4-b4ed-34393e781219","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":86,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"c71dda29-befd-4dd3-af37-6092f8a4f48b","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":86,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"ea72c884-6786-4bc5-8be5-1e3455044760","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":86,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"d777712f-22ff-4ac6-b253-ffbfd86475e9","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":86,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"fd14ba07-eed9-40e0-be84-62ea8afb199c","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":86,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"523a1d7a-c510-4eee-9599-6bb02de5ddd4","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":86,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"c4e330bf-2c48-46a5-a2ec-7de770301744","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":86,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"c58d555c-97cc-4d34-8a3c-1f1340a81268","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":86,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"bd8c02ae-6a48-4441-a6b9-51a2b390466b","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":86,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"14bdd0f1-4515-45e4-b4cb-14325dedd2d7","block_type":"box","text":"Liquidity Risk Management.","page_number":86,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"30ba8e02-ec72-45b7-9f56-43fca9e7323c","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":86,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"4eb5d5dd-0f6a-46ff-bfa8-f3ac69c3050b","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":86,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"ddf50525-eec2-45c1-a42f-de3bf7876cbf","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"c16f2b96-2ed3-43bf-a183-34072e36320f","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":86,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"421f782c-1835-4d2e-83fd-6b30d9ec321f","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":86,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"b00b26e4-b90e-4d12-979c-c8b910edbeac","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":86,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"915d667e-e0d7-4f12-908a-c9698faada02","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":86,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"5c7ee915-f6e0-41e8-9053-a7b70befa40d","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":86,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"bf02474b-b79e-4858-aa49-aa72e0ec7088","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":86,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"4a4042d0-613e-4def-ac15-a3a271b6754a","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":86,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"9e73135a-e0e7-4f52-94ed-d52595ce4c4a","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":86,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"24641201-d5b6-4ee9-bbdf-7052a5c88ec0","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":86,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"d56b214a-c987-447f-a617-641dfafaf69d","block_type":"box","text":"Master Limited Partnerships.","page_number":86,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"34788aa6-be51-4853-9400-4476f0497e9a","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":86,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e1877962-dadb-4105-9be9-ae5bcdb7df45","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":86,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"5016e193-8fe4-420b-9aec-eacd188d5759","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":86,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"6b8501f7-a219-45a7-ae81-1ca0de2c853c","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":86,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"fe5e1600-26ed-4fdb-8ddf-41b1f1c42a4d","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":86,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"ab12f7de-3cbb-4050-9545-db0d1d96235a","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":86,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"39d86c1c-5682-40b9-b1f0-669c2757c40f","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":86,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"0fdf6cda-b054-4825-8dee-196adf8db3a6","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":86,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"b98b8407-0efd-47dd-b035-6a810e75ad52","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":86,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"026c6fea-c0d4-4ae5-806e-e6245f2223a5","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":86,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"34ca6064-c72d-40e8-8308-6933bc83118f","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":86,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"8c12fb32-4d4d-4aec-a5cf-6c6e8931d6df","block_type":"box","text":"in the partnership’s operations and management.","page_number":86,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"19346b85-922d-4658-b98e-186587539211","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":86,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"af2e0905-000d-4135-8de3-ae39209f62be","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":86,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"87955ba0-8d8b-45ac-bc7c-183f1a361066","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":86,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"5f794a49-92c4-435b-8a25-f7575c46cf7f","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":86,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"ae991fbb-72ee-49d9-a11a-fe3f41d111f8","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":86,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"2ed037e7-037a-4608-a3c5-e7d1a36a5695","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":86,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"7c284471-7c45-4600-8f5f-a393c623e5fa","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":86,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"17493544-6de0-4394-9914-7e9f0804ce1f","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":86,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"18a6de8b-d261-4185-8f43-7ef4f41ed43d","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":86,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"99f96343-f19d-4430-8e68-75ccdbc819bf","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":86,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"ee3c958b-e9fe-4150-9d27-2c64684c096c","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":86,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"fb133609-49ea-4a4d-84a0-49b4344cd81b","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":86,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"1d079e31-8210-4238-bfe9-8ca475c5931b","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":86,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"47aaf824-5b6a-40e3-8492-3194ef51f35f","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":86,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"c573ab4f-ef38-4fbb-8811-4c9c029371ae","block_type":"box","text":"II-49","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a184a5d-3a65-4591-8f65-0738c4d3cf4b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8cb265d9-4d3d-4cd7-a8c9-baa74e882919","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":87,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"7eab307e-6136-4ca5-bfd3-d5f695162936","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":87,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"d0bafd76-6212-4d75-9c54-a038c70118be","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":87,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"a6619d0e-3f5e-4176-8c3b-8c726e7771f2","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":87,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"9b581462-161f-47f5-ae5d-d05abd46d028","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"43561e8d-067c-4dc2-b17d-1ddeaeef2721","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":87,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"0ace6443-401d-4ecc-a157-bf50a2c3778a","block_type":"box","text":"Merger Transaction Risk.","page_number":87,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"5b67bcb4-320a-4c54-93f8-1dc8c8b2cba2","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":87,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"a6be595d-af32-4829-b033-c8f56d0ca0d2","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":87,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"03caea57-197e-47ce-b5f0-1a296efdaad9","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":87,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"eabdaa00-a489-4545-b9bd-a92dc3d207a8","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":87,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"540929fc-6bc1-4575-b455-bf90f9465c47","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":87,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"97f47bb3-d8b8-4e8d-9e9b-a1ef7ef9c50d","block_type":"box","text":"the Fund and may lose significant value.","page_number":87,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"6baa9b18-aaa5-41de-aeda-43ff95899aac","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":87,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"830b21ff-0e48-49b3-9df5-87cbba533cc3","block_type":"box","text":"Certain","page_number":87,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"e91c4a62-3c83-4bf1-87bd-2922670efa86","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":87,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"bbd26fdd-5a8f-402f-af81-362fd9e808d2","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":87,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"77ab790a-d22b-45e4-8c89-943ae1424513","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":87,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"a6587622-6ba3-4de3-a570-31b2173322ab","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":87,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"290a487f-8d52-4775-b7e2-755f1c329af3","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":87,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"282db270-1f7b-448c-8614-ca8b67e3bdcc","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":87,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"569cd7f4-cfd0-4822-b1c8-826df3393e85","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":87,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"d0b8d780-58b2-48f9-ad95-ca6c2b48d184","block_type":"box","text":"branches of domestic banks.","page_number":87,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"3770a872-30f1-478b-953a-f424fe19909e","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":87,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"b778d202-33f7-47c9-8178-19fc139ad616","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":87,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"d15fb8a5-7686-4715-928b-11bf8fadd80e","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":87,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"c996c393-831d-4ab3-bece-b43e469e20db","block_type":"box","text":"paper of a foreign issuer.","page_number":87,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"8995d912-e152-4bb7-8a51-56b6cd75baec","block_type":"box","text":"Money Market Securities.","page_number":87,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"053fceb2-a842-43a6-b6bd-a0c5ab87d575","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":87,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"44473b5c-1751-41ac-b915-fe2827546b05","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":87,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"cc8d430e-548f-424d-b43f-bffc40f0f26d","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":87,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"872ff147-f8b5-4c8d-9575-65c3fdfe048c","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":87,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"70719b31-c75a-40cb-a302-91954c04af51","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":87,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"788cd2a2-a613-4b18-8f41-a39d399a0f21","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":87,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"7dbb6a6c-de84-43dc-a183-0a29df60463e","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":87,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"46d5747e-895c-4f6f-9b9a-1670350b1b04","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":87,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"99c1ccfa-0e46-4b1d-b2e5-e848f67021fd","block_type":"box","text":"agencies;","page_number":87,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"2307647d-953a-42ff-98b2-f3203c360cb1","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":87,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"c4dec6a0-1bb3-4e3b-83a4-023339464fa6","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":87,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"9392cb50-fc7e-41ac-be76-8de4643a2f04","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":87,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"e1f570a1-d875-4899-8b79-4777e2a1d226","block_type":"box","text":"obligations and credit card receivables);","page_number":87,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"b31771e5-d735-4a78-87de-0421f7f08fea","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":87,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"25d2984d-cc35-4320-a587-7e4d92e696e7","block_type":"box","text":"authorities and related custodial receipts;","page_number":87,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"9e3d605c-bcaf-4815-b3ba-e2070a9b0ba1","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":87,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"eeb2f55d-9720-4919-b4cb-ad61efccdc4f","block_type":"box","text":"agencies or authorities;","page_number":87,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"0c368e58-5b41-4219-8dc2-085cf9bae464","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":87,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"6a1547bd-aec4-4ca2-b86d-93adbce5c762","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":87,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"4eed9289-48df-4a19-8615-974b953af96d","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":87,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"3fe4be10-f0b7-4065-9e50-260df93cc1ae","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":87,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"e339f038-43ad-44de-9c43-003de014abd1","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"29b4b939-092b-456c-9bfb-f665480c843f","block_type":"box","text":"States;","page_number":87,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"7a02bc04-9395-4efc-8114-5486e33f61db","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":87,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"92ec57fe-3c0e-4abb-9660-0dafc2016b0e","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"d1cf4b6e-51a8-4d1e-9c4d-f55cedca19e3","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":87,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"202d41ce-f6e0-4686-a28e-f7dc742d0718","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"e67eaff6-98c2-488b-88f7-232102941ab0","block_type":"box","text":"II-50","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a8c604ec-00ca-41ce-aeb8-17e3a5a1353d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4cc0ed35-d26f-4fa0-9536-3150da855f6e","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":88,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"0620e81e-2262-462d-9523-f55a55b04f31","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":88,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"e20ae03c-f66c-4dcd-859e-7b4f896bace9","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":88,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"20f87cf9-bac4-4948-a1de-9bc66b090fd2","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":88,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"cb5375a8-7e58-4903-bf5f-4b2e982fe7c9","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"f4a261fb-63a7-4bcc-a1f6-178ec3494e37","block_type":"box","text":"States.","page_number":88,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"e4bf6f65-90a8-4772-bdbd-1a165bca0580","block_type":"box","text":"Mortgage-Related Securities.","page_number":88,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"3c4ec788-465b-4392-b2bd-dda58c6f5e9b","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":88,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"1d715af2-fd74-490c-bae7-230993e3f4e1","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":88,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"88e049b6-0eb1-4111-8cab-b0444662bf32","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":88,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"e5a13c66-fb1e-4a0c-9ec6-6b34e2387102","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":88,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"3f3aa5ba-cb9e-4eee-9551-4ceb19728d01","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":88,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"66019b4e-c327-4f63-88f3-4cad3869f60d","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":88,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"e0b6ac61-3e20-4d62-864a-8dd4dd09dc47","block_type":"box","text":"maturity or specified call dates.","page_number":88,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"62ceb166-94db-4cba-be53-d502938d648f","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":88,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"def7d582-5cbd-40d5-9faf-dbb29a7b303e","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":88,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"57899676-5593-4098-b403-c77cd3e63c91","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":88,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"16421f3e-15af-48dc-960c-cea4e0219183","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":88,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"afbf9fee-b5dc-4e88-aa13-cfe057971003","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":88,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"97ca7dcd-a40c-458f-9530-2b34d2736f6e","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":88,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"b4490c55-b8f7-4d21-92c6-907269108d77","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":88,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"c65312f9-e545-4ae0-a3d8-8d9fdce6f07f","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":88,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"e9ff8ecf-9c86-4a4c-be8e-ba46be5535f9","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":88,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"b8973118-084c-4261-871f-a77574315bc5","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":88,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"a84ab4e8-2830-48e9-8908-f0717effca54","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":88,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"9629dd95-278c-45c7-8915-13851e5e3992","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":88,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"7da34774-66d9-4f35-b18b-e6791e34f68d","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":88,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"ed79c184-d251-406a-b586-0c6557b51184","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":88,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"bdefc668-e6b0-4fff-a847-442fa0f5893b","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":88,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"b7fd3f64-90c9-45c8-bb91-5427073a2eba","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":88,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"f794bd10-64eb-4a02-936e-4e1f9cf8e308","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":88,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"9e3f7554-0fbb-4a09-bf20-1fda60195f00","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":88,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"3eaae909-a13d-4141-b9cf-570d0541b95c","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":88,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"6b85426b-4b3a-4612-8af6-ff30d855c36e","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":88,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"a3e7e855-f218-4b95-9185-9379bbda7385","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":88,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"c05ca1e1-ef3d-4321-a845-7d9f8aeedabc","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":88,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"3b4a1144-abec-42f0-a9af-bc49c3f49a78","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":88,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"99f34a5c-765a-4a85-b1f6-05e503ebfccf","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":88,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"c6c66b51-f848-4a97-aa2f-6c2e98da877b","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":88,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"81ecab98-32b2-4cf1-b658-85362b7b8999","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":88,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"19e2c466-116c-4ffb-9058-0e790d15db6c","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":88,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"815287e5-6c51-4b42-85ec-ed92ae03c2e0","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":88,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"cf180a8b-96bc-4adb-b523-3d172e915760","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":88,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"e53d1a06-5792-44ed-b23d-147d9db83158","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":88,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"630e12b2-f931-4932-8449-2b0f0c415086","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":88,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"b478b7e3-8630-47f5-be36-3b70b34bbdac","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":88,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"ef9d5454-0912-445f-997e-461e66b92d08","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":88,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"b8783bb3-737f-4e96-87a9-507223e91724","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":88,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"3e73d489-bba0-451f-9e69-b3dd8b71f93e","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":88,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"015ec586-4036-45ee-96bf-35c098c8532e","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":88,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"34d14424-4ce6-4da1-b167-174f2faf5352","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":88,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"32ca90c4-9d18-4cba-b6a4-f91ae8d21748","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":88,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"da0aa5a9-a634-40b0-92f3-d3d59f917b7d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":88,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"b09de82e-5bbf-42a0-8fa5-87f2fd6b058c","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":88,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"0f275874-1426-4b6d-b807-206af2c52478","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":88,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"f33e16e0-56b5-48da-a7ba-85ed4e8234f5","block_type":"box","text":"II-51","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58faa352-0555-46fd-ac2b-76a3447178bf","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cb96b4d-c221-46b7-86f4-6a233792aea7","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":89,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"733f6e10-75f5-4285-a59a-55de2c6b5942","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"5808bff6-b8ad-4204-8645-f4e8e4615337","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":89,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"37841ace-0434-4607-a3a9-bb00e04f4984","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":89,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"dd9696e6-b82a-4697-9b2c-8e29561d8d99","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":89,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"bfbdcbaa-4cac-404d-8485-ae7a0b2a7ec4","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":89,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"13cc17b4-e0d1-40e9-bdf6-e5418c175c67","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":89,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"676080f2-cc35-4fd7-9766-da0f7dcfd348","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":89,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"4173cc84-839f-40b6-9326-cb136ea96675","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":89,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"dcdb6a2d-d539-44ed-836d-8a0f1c0531a4","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":89,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"f658e342-e9f6-40b3-a46e-4146b893ae33","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":89,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"321280ce-f786-4b73-890a-61a7111519e3","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":89,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"e5c03c26-0284-4ace-97ca-882dd23c71a1","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":89,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"b8231ee6-d701-49a4-95d8-74ebead658cd","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"a761c654-6572-4135-b392-42b22b426761","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":89,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"8caa811e-98b6-44c6-abec-04432e334644","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"cf5ca353-b0ba-4f6c-8157-72ce77c32f22","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":89,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"a3ab8945-b645-4cc0-b1a0-f31daa71f258","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":89,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"2a3078f2-082b-4aae-a468-7aac0cc33a1f","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":89,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"a1d2f997-c205-44ed-b56e-7417362a085f","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":89,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"aa4c3a18-fedf-417c-a04e-7a927488e499","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":89,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"aad15c60-fb4f-4085-ae38-9e48eec5f3d9","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":89,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"69996e1a-b103-417b-986d-4f6677d36822","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":89,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"b24dad98-551a-4d08-9a67-e37dc18de69f","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":89,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"68f1affe-f004-41e3-8e13-75398c63eec9","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":89,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"d12fb315-d886-42de-a60a-3f57055f3dce","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":89,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"76d28cd7-8a07-4fa0-844e-352493aadc99","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":89,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"1365a08b-eda2-4c3b-841e-7c5c84ac45e8","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"7260e3a2-b60a-4923-b565-26b56fad1ce1","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":89,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"9e9f69ec-0810-4713-9d2c-81b900649fb1","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":89,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"9c6c367e-ae01-42e6-8948-735ceefdadd0","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":89,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"260ea852-8f18-4bae-a2e7-a215e4f358e6","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":89,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"582c94c3-c58d-456c-8127-4c85edde20bb","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":89,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"caea17c2-fb7f-4d3b-8f2d-35df084967fe","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":89,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"b9d2f0be-c59a-41d6-bbba-963c6c2f0219","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":89,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"4c50a38b-bef2-4bae-bbcf-3604ba48d819","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":89,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"e127a362-4e01-450c-ae71-6828f2c7eb2a","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":89,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"9dd3ef24-96ad-4244-87d4-bf2cf91bbddd","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":89,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"1dd09794-99f1-47de-a04c-da240cb75317","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":89,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"d984c5ae-c162-41df-99e7-bc2962b6acfc","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":89,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"a970ebaa-f758-42e1-b729-66546288686b","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":89,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"14565d5a-9bb4-4d93-a0bc-c53a889ad115","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":89,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"f695654f-c89c-422f-a68f-3fa7241ab20e","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":89,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"0e67e3b0-de14-4bac-a772-3802b5717e72","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":89,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"5c27340b-3234-49bb-a947-248cdfc6a404","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":89,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"a294b34e-5c2c-4365-8d40-9c26298fe668","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":89,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"45ba59e2-ff16-4f95-ab0c-facc728b0d3b","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":89,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"2958701e-1f59-4451-93eb-197ced863c21","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":89,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"bcb31b0e-f2f8-4963-9638-3f8a5d71cb72","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":89,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"af08abe9-3529-4ee5-88f8-d3de0819a279","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":89,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"e139098b-98fb-45c4-88ef-a2e4675fe587","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":89,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"eab03249-979b-4756-93df-97d5574e0710","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":89,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"25784983-cf8c-4704-b7e2-2033bcc5dd01","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":89,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"db8ef50f-eed7-4ff3-bab0-977edfe20d74","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":89,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"1c75a9fe-d41c-4b66-899d-5813cc40c699","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":89,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"aa9903a4-819d-4be6-8460-0163d3ab21d3","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":89,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"bfee89cc-519e-46b2-87cf-2e490c306817","block_type":"box","text":"II-52","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac0c113e-b5c9-426d-9388-e0c62f06ee1d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adf06ba2-0eee-4c63-b244-61ccf73a2954","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"a790dde3-83c2-49ad-9a13-3d35b0495f20","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":90,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"3cf6d864-1aac-4e3c-9a7d-d41162acdcef","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":90,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"cff7fb36-bc43-42c4-b87e-df4aaa83c61f","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":90,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"f9abaf39-ac94-4247-bda9-1657c90cb800","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":90,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"7b294584-adad-40d5-8088-d234f7521226","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":90,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"1b6d2119-b8fb-4185-9164-1034b19f8482","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":90,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"42120f0d-a0af-4a15-a27b-9b5f1304124c","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":90,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"f3c3bd06-1077-4837-912c-9e214be3a572","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":90,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"e6705472-0ee1-4a44-b41f-72186fa7b115","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":90,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"a0b432e0-617e-488a-bd0b-b2e94f87e23f","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":90,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"994a7554-cdca-41f9-8462-d48fc1e60c49","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":90,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"0b4c1aea-b7b5-418f-9043-98a18b30e6b0","block_type":"box","text":"of principal because of the sequential payments.","page_number":90,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"a5adcc04-3f36-4fb3-83a0-1e73cfb7c799","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":90,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"8e7743d6-f576-4033-9921-804682369b19","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":90,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"224229a9-f24d-49bd-887c-853cf77eeeb2","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":90,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"9c398065-937d-43db-a475-dd151adfe596","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":90,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"bd2bfa7c-fff9-4bb6-8599-dc6b4126fc2e","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":90,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"b8c1950a-c2f8-4116-ad97-5bf12b263b18","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":90,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"557163e1-6455-459f-a718-ac73b9e8c657","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":90,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"eaf63bb6-3577-48f8-8fee-8fc58b206cdd","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":90,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"c744b654-5982-4922-8ba5-a98b6d918dd1","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":90,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1a37ae4c-4f78-4aff-941d-590843e9f91c","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"43758361-1a6f-4868-9cc0-dccc0ab434b1","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":90,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"c55914ab-95c7-44d5-ac6b-0ad0f3e5cfe7","block_type":"box","text":"securities of any single such entity.","page_number":90,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"b17cd7ec-07d6-410e-aac1-3474917abc23","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":90,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"f0dce3e7-011c-44f8-bf1c-51e0eeb318be","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":90,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"272cfa0b-9a6b-4ede-9127-9c0ce3bfc0ab","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":90,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"646cacb2-3508-4b19-8d70-8a69d74dfa96","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":90,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"59203b24-87c5-4990-9cdd-9706f1503f42","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":90,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"fa51081c-5daf-4e4f-898c-93892cc2d290","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":90,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"df25c3a8-fec6-4823-ab07-1f81834ed5e0","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":90,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"06343f26-8c89-4076-af14-814d48f73ba2","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":90,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"dc897cb3-9d97-4206-bfb4-b4d850a6f6a7","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":90,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"0d0f7810-9870-4fbd-a10f-6bf1bc673198","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":90,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"3a70b7b7-d823-474e-8568-f7ec845578ad","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":90,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"d9794d39-b39e-4b7d-a6e4-83a8e88a79fa","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":90,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"38f3980b-dfe3-441e-8eee-0e3948334bb2","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":90,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"6529740a-643c-482b-a112-79fc7c62101f","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":90,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"518956f3-6de2-4ec5-b3e3-4f994e19a33c","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":90,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"ee59851a-5743-4712-b98f-7b56e9759cc9","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":90,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"bc86a4a4-6ad8-447d-9d82-0fc6d1170da2","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":90,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"1dac3d2b-b7cf-48de-b706-e2289bb09f0f","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":90,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"c14c82e0-f640-42bc-8b0a-b014a7f0c5db","block_type":"box","text":"classes.","page_number":90,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"2a2d96c5-56b4-4160-aac5-9ad58aca80ce","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":90,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"b8901e7f-6367-4e4c-99f3-e362e4c52a3a","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":90,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"08d36752-6c76-4673-b84c-cf2923566aa1","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":90,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"96c9c956-ecfb-4d8a-a385-48357c8a45a4","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":90,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"37005a4b-0c5d-4b8c-af19-0405828b2dc8","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":90,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"5e88db76-52d1-4dc3-87d7-5cc1ee36d3f6","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":90,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"fc2bbd11-cc42-4345-ab4e-eaa8bb4770a3","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":90,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"e0cf5982-4ab7-44a1-8c08-e3422147b298","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":90,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"2b5109df-bb31-4084-8810-a445e47ee4da","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":90,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"57081220-4c18-4e7d-9255-e07a24bc0cd9","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":90,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"45cd8446-3608-4107-9bc9-5a065743dc23","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":90,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"b047e1e4-7097-44a8-8140-f0c4dfc26d46","block_type":"box","text":"to a designated benchmark index.","page_number":90,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"6326bbcf-9d2b-439f-9ac3-fb3f84440742","block_type":"box","text":"II-53","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a2e331c-23b2-47e1-9123-ec91a046b195","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b595c34-1e8f-4f5a-87d4-2766f0e47ef8","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":91,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"6fad6b57-00dd-442c-8306-2e9d9db366dd","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":91,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"3420e69a-5c2b-4c1a-bd69-42ce48bc7f62","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":91,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"0fc02247-fb12-419d-983a-84962180924c","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":91,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"ad6aea61-0119-4849-9ab6-e3a3975c7031","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":91,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"0eea5cf2-69ad-45a2-86ef-40093e3e715e","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":91,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"59d605f5-7137-4303-a195-39afe535e57d","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":91,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f963fe1c-2f7a-4315-b965-901ed7484301","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":91,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"59cbf2c7-8e9f-40ed-bf43-9b44d26747be","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":91,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"ef6aeeb9-a959-4310-9e72-c2e80bb715fa","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":91,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"22963a8c-2ac5-4451-8766-3b25c000aee1","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":91,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"ff1bb440-55fe-4009-b47e-bf75f797428f","block_type":"box","text":"CMO Residuals.","page_number":91,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"0b0b416a-bb0b-4030-97b9-ebd5f72d977f","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":91,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"14553c0e-3bca-48d1-8dde-0e7845869c5d","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":91,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"01e64240-21b5-4bbf-8ae1-7bda0a2703d8","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":91,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"d43200a6-bfc0-41b8-9082-e3b172e94749","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":91,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"6cdf1af4-5559-4376-a999-f55acab8e9c6","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":91,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"593990a9-8c45-471f-a55c-566c54844141","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":91,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"951bc356-01fa-4164-990c-a15cf5131936","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":91,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"46e52c05-8e3b-49e7-8f84-e21e4494ea1f","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":91,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"1ba65a0b-bb9f-43cd-a74f-c7ccb376b96a","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":91,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"82ba846d-60d4-4b26-a411-570d64bd7f83","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":91,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"f7a246c9-7823-4db4-971f-d270432c6cca","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":91,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"adb59ab1-12c1-46cb-9a04-9fde959d4782","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":91,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"eed21087-eb9a-4060-bf70-d5a77d314544","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":91,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"19e248d3-a65c-4a32-a7ef-73a35a5a479e","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":91,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4118ef5f-0390-4a05-b3cd-59da33c02ee7","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":91,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"ba009a28-f905-4cbc-a3a1-3575eb18971d","block_type":"box","text":"a CMO residual.","page_number":91,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"3e226599-805b-4bd4-badd-d765e51c88d1","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":91,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"e1a0e238-13a8-4b98-a5cb-7b140dfe192d","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":91,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"5a475809-5655-444c-a875-9718c28fe7d9","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":91,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"541e1a83-3521-49f3-b54a-1b36d2ee53c9","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":91,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"094d8136-6743-4762-90f7-987c40cc1bc9","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":91,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"93e5a932-2994-4db1-a620-582061889947","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":91,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"ac11ace2-1897-449d-bb9e-57720c99c1ac","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":91,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"390c9cf9-b57d-4ad8-9be1-3a0e47c48947","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":91,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"1b5e54c6-eaeb-4abd-8593-3184a3ced172","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":91,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"424ccfad-521f-4591-9865-68c3dce2acbc","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":91,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"ad28d0ed-b44f-4a07-8005-cf318a005ea2","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":91,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"c89668b1-6b05-4e20-8ac8-1c11c257d600","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":91,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ef00dc72-79bf-479a-9248-1150f9d076eb","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":91,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"714aa626-8105-4890-b272-00cfd2afaf64","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":91,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"15f830e2-08ee-4d74-8dd2-4fc662098d46","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":91,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"488d6232-c4f7-46a1-8f1c-ccaff6bf4dc1","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":91,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"53359465-11e2-4bdd-88c4-41dff2643f45","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":91,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"5da65983-85f1-4a1b-bede-70969ac51fc7","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":91,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"4a8a0d13-ce26-4e7f-b796-8e654831ca3c","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":91,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"0e0a034e-0963-4333-8d51-f269a042f62a","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":91,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"f0eaad95-0e08-49bc-b672-bd55976795a2","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":91,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"d2bbc053-3221-4ae9-a5ce-abf3a08148db","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":91,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"5335cbf6-a389-4af7-8a2c-1fb380b5414d","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":91,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"ff71af01-c290-4a87-a6d4-e66deb4c9e35","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":91,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"ad1cb3a4-c76f-4e14-9277-ce664cf7dd55","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":91,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"38770c8a-85f8-411a-a591-2b56a61bfa6f","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":91,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"c40b8e3f-092e-4f2d-bef5-1b0df5b27916","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":91,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"a90a9da9-ea99-4614-b2cf-10db55f9039b","block_type":"box","text":"Tiered Index Bonds.","page_number":91,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"683df380-8ad3-4cb2-8d9c-666270f1b6f9","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":91,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"1525c3e2-c4f7-418f-829f-354954f89da5","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":91,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"3a5f4496-a485-49ad-932d-0956dc043c1b","block_type":"box","text":"II-54","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f5bacdd-0db2-420b-b0ad-a0a1633f9803","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27dbe853-d2d7-4518-83d0-0e40a30c0302","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":92,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"aa7a7969-45c7-47c1-b262-1ec4e046aa1f","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":92,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"6d6f74c1-2604-4de3-a971-d5d0e6eb07df","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":92,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"a69447f3-2af1-4312-8383-9232481dd42e","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":92,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"104c09ce-4863-4f12-a143-27ec23e170ac","block_type":"box","text":"that of a fixed-rate bond.","page_number":92,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"5b11bb79-061c-499b-bee2-e619da8697d8","block_type":"box","text":"TBA Commitments.","page_number":92,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"33542b5b-a26d-4f28-b757-f62843dbe3d9","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":92,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"cb76bd64-b9e5-4f56-9b3d-39ec0ad4b05c","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":92,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"78d7a755-f67f-4fc4-83b7-6d65ee2660fe","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":92,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"99a7d425-b930-4342-a075-563668d7bd82","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":92,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"6a50e795-ff99-4002-a9a8-1dc2a9d194cc","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":92,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"fbfd7d37-dff6-449f-aacc-9290f05c7b18","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":92,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"13ab0ef2-3fe0-40a7-9979-61212175576f","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":92,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"0d99d696-3667-4d24-98c9-edcc2eb2111e","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":92,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"798b46bb-21aa-4a82-961d-4499cb624cb3","block_type":"box","text":"below.","page_number":92,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"f11efd9b-37ef-4de8-b548-6a09d3a12286","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":92,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"01a0338c-f0e9-4599-8809-1f14cbe1e527","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":92,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"eb97c954-9a0d-4865-b966-0852c823dbe2","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":92,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"7cc8a3a6-aaf4-489a-9b79-031ddc38f048","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5d51e488-a2be-4daf-931d-dec6f26cdcbe","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":92,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"b90ae5ba-ea27-4245-b712-48d60589d550","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":92,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e9f8fc05-aaaf-4fc4-8b91-f4d151dc85d8","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":92,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"813d44f4-303e-4640-8214-ffc597797dc7","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":92,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"900c06d6-6426-4b0b-b5e8-517482bc8ab7","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":92,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"909ad469-fcec-490f-800c-358422a00ce2","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":92,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"5f6df107-5b2f-4a2b-9256-e581587a9517","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":92,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"ab0231d3-11ef-4ab3-89fe-d16f144c3471","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":92,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"1b3b578c-8bdc-42aa-b8ed-5a163e1938f1","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":92,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"ccc84f2e-8661-40b7-ab37-887a752d33d7","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":92,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"9710a82c-f46d-4ef9-954d-6c337e56e06f","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":92,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"dc21c9c2-0a60-463f-ac43-2190e650b348","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":92,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"3cad885b-aea6-4e92-8177-3a37b15a4024","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":92,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"e3f77f31-cea6-4a0e-a4d5-3b62bbec94e2","block_type":"box","text":"securities in the forward transaction.","page_number":92,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"a3d09b5e-1dc2-428f-b6a3-24845f36a30c","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":92,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"f5b894f7-1433-4d0d-979b-6fb49e283050","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":92,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"e45c1cad-090f-4b06-a8aa-c47797180669","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":92,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"f2415d02-b5e2-4f46-a1c9-86db753c08e3","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":92,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"14ef5437-cda4-48ed-aa4a-e37b7ad01738","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":92,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"0a816de1-992f-4d6c-b834-575967fc8c41","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":92,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"42b9195e-24b0-4abd-8a69-eeefbbb40f2a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":92,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"d34149a5-50da-4eee-9362-dbaf2a0aef09","block_type":"box","text":"securities (","page_number":92,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"a218115c-7d41-411a-a698-900389469159","block_type":"box","text":"e.g.","page_number":92,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"b310304f-3387-4c8e-8d17-a5d81102a139","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":92,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"7cdc8a9c-834a-44ef-abc0-240886fc8327","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":92,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"909919aa-73f3-4b71-b38d-a8df6d8d2c0a","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":92,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"b9541fce-c52f-42e4-aa55-ad0bb61c89ec","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":92,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"d162e136-fac1-4a28-87a8-0aed540e58f7","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":92,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"75391956-6405-46f2-bffe-fe4b36be8af4","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":92,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"52512047-8466-4471-ae48-d575e0e8cb5f","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":92,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"2d2ec9c7-4b8b-43db-94a1-9f5db72cb9d6","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":92,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"7601a814-74fa-417b-b902-3657bcf49958","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":92,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"79164960-af05-4577-8558-829e223475ce","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":92,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"0a30667a-3a98-4fe2-8dfd-0ffe81357566","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":92,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"06150692-600a-4601-8dd3-de2d80e1ea91","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":92,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"34e075d9-f875-4913-ac80-95f201f7dcab","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":92,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"ca4a5c45-d9ff-4b10-a624-b25632ab247b","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":92,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"abb46a34-39e6-42ea-aef6-e8c59324e0f4","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":92,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"488a4f54-9c8b-47c4-86d0-9bb60713d96e","block_type":"box","text":"Municipal Investments.","page_number":92,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"2a1dae30-93a4-4c5a-8676-6a5b4014f5ff","block_type":"box","text":"II-55","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74d8c9aa-0207-44e9-bbe3-ce7018f70a63","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efa1b267-0eab-40a4-8c85-8c427b6d0d3a","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":93,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"75ec9ace-2744-4c0b-bede-dfdfe1946814","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":93,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"9d7c371f-73fe-401c-b709-ff6eea2a6f2f","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":93,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"dd89672c-28a2-4f47-9df0-2e73d3fcb950","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":93,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"89efb545-bf92-479a-ab43-02f3b868a4bb","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":93,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"dfcb934e-b463-4f86-9aa9-992cc7aeab09","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":93,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"4edef935-476b-4fb3-9681-b97d4ce3613f","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":93,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"2147cb00-6af4-46a8-8abf-a91191ea0b33","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":93,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"b629a19e-7bbe-451c-95bf-0a7b8f1369b6","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":93,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"3240b3ca-5f7f-482a-ad34-0942f4430a16","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":93,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"31573999-372d-4157-a4bc-f07a3fc27d04","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":93,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"f2379174-16a3-4f4c-852f-dff2370a419c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":93,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"0c5a1eb7-c4e9-4524-81b9-e98ecc49f4d2","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":93,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"2d72c721-a3e0-4b64-a06f-375c8819b8a3","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":93,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"67ccfb48-fc3d-48d2-ae2a-554cec62c6dc","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":93,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"b76fa7f5-6ee3-4f6b-83fe-1cfa1dc61674","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":93,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"adf68cb0-49a8-4806-8ecd-ddcc54a1a2b9","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":93,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"0d599bd8-5b83-4168-bc80-91eb2f86e532","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"703afa7d-82df-45cb-8bac-27f7a90d481b","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":93,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"539e84c3-9ae9-45e6-a4df-04aed039b324","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":93,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"184d4835-14b1-4b57-a1e3-a59445511aed","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":93,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"f93aed82-9db4-4ba7-b51a-584c86c4e155","block_type":"box","text":"The risks and special considerations","page_number":93,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"004543ef-c4a9-46e5-840c-cd9966736290","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":93,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"cdeb926b-bb45-4d87-91ae-37db13b67cb9","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":93,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"d9bafd00-10c4-4061-b366-3b64e07ff167","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":93,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"e0566e54-0313-4b86-9f53-7490a23d7b53","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":93,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"517e2e0b-d0c3-493a-8fe5-ecbc965e75e7","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":93,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"d4a18dda-ec14-4415-bf4b-4e9940db47b3","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"b044c6b5-dc73-48f1-92f7-1ef30423e38b","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":93,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"1e6bfda1-9fb9-4856-990e-0b442251fd8a","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":93,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"aca38e54-61e2-463b-abe2-2b5130dae053","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":93,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"6267efc8-9994-40fe-bfca-a9b6c5418ca3","block_type":"box","text":"II-56","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bdfffb01-3aed-4a8f-a632-43024cefece9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cb5c345-5e82-4a00-9bc0-0cf61cdc2575","block_type":"box","text":"Description of Municipal Bonds.","page_number":94,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"5c5dc95c-affe-45e1-aab6-221a5e55a9a3","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":94,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"c97b1a01-d24c-46b4-8356-a4ddc70d065c","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":94,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"2a11fb37-f097-4e4f-8015-c145a28c07d0","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":94,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"cf7de3f4-64c4-4948-8cb0-92f647ac8dfe","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":94,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"2be9a4df-bd3b-484e-9c5b-998cc1680842","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":94,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"16fe3d35-8656-40af-8064-d6df410b558a","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":94,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"28801b19-7e9e-49f7-a737-2de431cfb721","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":94,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"ee7dcffe-58b0-4825-b698-39f764c303d6","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":94,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"6cfb1c94-72ad-44c4-b207-62c630a1a2bb","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":94,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"d5229089-6456-40a5-8f08-52d85f82bbcf","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":94,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"9e980461-976c-4366-b714-cb3307424b31","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":94,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"d3bd57ea-a27f-4eca-b776-683cc862de8a","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":94,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"1aae0355-65bf-4ac8-b6c9-c86b1501d022","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":94,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"367df7df-da83-4d65-9e6d-2d2b074b1ccb","block_type":"box","text":"General Obligation Bonds.","page_number":94,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"f3e1d8dc-2580-4b34-973c-5ee420bfdc9f","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":94,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"d88b2c4e-2241-4c2d-aaa5-93f0f18b8700","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":94,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"e9ca66f2-27be-4a20-82fd-ed3590f6c1b3","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":94,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"47dc5395-41a0-4d6f-a9fd-322b0ab0355c","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":94,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"7a8fe77f-6216-46e5-ab7e-a96af91845f0","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":94,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"94938c6a-2472-4fac-b160-86ab33d8e619","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":94,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"e1cc2ff3-62b1-4dae-b9ee-9db6ac2e3744","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":94,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"2dfeeac3-02d7-4f22-bbaa-de50ac76d2ab","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":94,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"e21cf6e8-e065-4594-b87a-4058c9d35ba9","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":94,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"df6849a4-e521-4f33-9bea-7dbc739624d9","block_type":"box","text":"Revenue Bonds.","page_number":94,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"7aaa5d52-b520-45fd-8d14-815fe2549034","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":94,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"ccf6f697-7deb-4ff6-96e6-02c601a9ce50","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":94,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"f6997e85-f2d4-47ef-b047-a4fea6af15cd","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":94,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"dcd93541-5fa5-4309-a956-c3f2934fa920","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":94,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"e7641669-4362-4030-b90b-8bb477be7fab","block_type":"box","text":"viability of such facility or such revenue source.","page_number":94,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"906f9a19-3373-4dfd-ba31-ce68dedcb91e","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":94,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"ac96e3b1-c5bf-4397-95ac-a59cf7713c57","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":94,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"4772e79a-5326-4423-9260-02a518597921","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":94,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"ef123ef8-10a4-4aa7-80c6-339a5bbb918b","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":94,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"241151e5-d17d-4967-9839-a77c16eb8436","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":94,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"7c37c8bd-4a7a-4781-b3cb-f57f9836e44a","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":94,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"fde605b1-0230-4258-86b1-146fde044d82","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":94,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"a5c3f2dd-b49e-4a95-85b5-e8841889aec1","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":94,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"4f13308a-df79-4867-9209-35498ff1a9fd","block_type":"box","text":"PABs.","page_number":94,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"f6fe7cff-9419-4e5a-9e8e-e531b24ecb2c","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":94,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"dc539531-5c74-4373-93aa-2403c3ce2ec7","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":94,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"0c1d2485-483d-480c-8df9-270f767d27cf","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":94,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"33f3565c-24e1-49ba-a238-9397588f9369","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":94,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"7a585156-0a2a-46c1-84bf-a3f24c4484db","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":94,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"05bfd04b-b711-418d-bb3f-62378966701b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":94,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"927297a4-f7c1-472c-8154-bbf8ca34ddf0","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":94,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"1f96a346-805b-4976-b2e4-acf463c1be79","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":94,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"b0a6e473-3b14-451f-951a-fb01aeeaf04a","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"cbf7c92d-d2f4-4fbe-ae60-38c2e083e7ae","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":94,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"5718e8cf-8743-47ce-861b-50f0ee39408e","block_type":"box","text":"the particular facility being financed.","page_number":94,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"09e272f0-6653-4b32-b61a-ab1c76ff1512","block_type":"box","text":"Moral Obligation Bonds.","page_number":94,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"050adc42-00f5-4440-bb3f-6923eb6903ff","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":94,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"5f0fb7ae-fd5a-4665-bb4d-8f58ef651bc7","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":94,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"16db09ff-8ede-4fb1-8306-7bdd2355f677","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":94,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"53596a94-cc6f-4584-b6c5-51087ff062ba","block_type":"box","text":"that issued the bonds.","page_number":94,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"2f41d1ff-8b8a-4eed-b9bc-2bbbfaf42db3","block_type":"box","text":"Municipal Notes.","page_number":94,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"e8af41f6-fbae-4da2-85f7-e064d24bae96","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":94,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"a170f130-88ef-4f90-adb9-1545513d9744","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":94,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"4689f554-a515-45b6-9e95-a90f1b5ffbac","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":94,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"5e73f44a-01f6-4b8f-a0b7-df8e3351ca76","block_type":"box","text":"II-57","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8bbfc32-c9d8-4349-8e8c-0afd0a04a6c9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a99587e-adce-4e73-a0f8-f5dd0a36e45b","block_type":"box","text":"Municipal Commercial Paper.","page_number":95,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"b951b232-0aeb-4dff-9c08-264a2f7eff9b","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":95,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"62c95d10-57dc-4811-b91f-3781db41074b","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":95,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"bbeb46bb-559e-44f1-8c0c-05d36049f6e8","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":95,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"91c21a4b-bdca-463b-88cd-cedc3a71a267","block_type":"box","text":"Municipal Lease Obligations.","page_number":95,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"a11f2f36-53ed-4d32-b156-03ce0bc5e2d6","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":95,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"c91129da-d0e2-4168-9437-d4721bdc3abf","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":95,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"ae4d362e-06ba-4e4c-a3a3-e317e374277e","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":95,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"8271c087-8da2-4f1d-a837-da9035bf0870","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":95,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"00add497-f734-4b87-8cd2-7d7348d40b55","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":95,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"654d700d-c153-42ba-bb14-4dc2ee2c1bf7","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":95,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"cd2cc2be-8db6-4ac9-a8a4-6080207d7330","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":95,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"43514dbe-cfe9-46f1-b235-4e25eba49366","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":95,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"2cfaa883-3d9f-4677-a46c-f1f7e63506fe","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":95,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"113487a4-acb5-4798-9200-88cf1480b5f3","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":95,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"a0939293-11a3-4d45-ab12-ad8d11db1d19","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":95,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"404023ba-a10e-446f-ab23-75d5098ce79d","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":95,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"dd1b54c4-ef7b-4c6d-ac95-582f71bc2542","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":95,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"ee6a7f05-4e93-402c-824f-4f3c6ded0b05","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":95,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"832c99af-e5bd-499d-9f94-ad07ba4cb85e","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":95,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"5aca7a78-3bfa-4660-8bd7-c5bea8cc3010","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":95,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"9a3b5d2f-5e85-4c1e-9e3e-a61764142fd9","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":95,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"c5ffb8e6-8e16-44f5-b99a-70482871f41a","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":95,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"492e2fc5-fe82-45fe-8e63-fa0951f94c53","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":95,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"6ee6b2c1-5209-4ef3-b29d-84156e9e4b54","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":95,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"21e24fd6-e65f-40fd-a036-bb521cb706c4","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":95,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"b38f81b2-aa4f-4d5d-b0a9-9ef95cc25d1e","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":95,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"cdc8cb18-507e-4703-9b7e-d7d65fe5a9be","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":95,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"5cc3d465-3f12-4a97-aa4d-e639b18dd7c1","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":95,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"d9c56ff6-959b-4d2d-a9d7-0d7a4949a0ce","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"38878caf-8f87-46ee-96cc-a82347ae9fcf","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":95,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"282fe8d8-ab5b-4f76-8894-6d1c5e2b7a38","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":95,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"458ff32f-bcd8-4056-a55c-f49e372ba582","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":95,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"780c9335-a885-4fc5-ac77-616e5819e151","block_type":"box","text":"Tender Option Bonds.","page_number":95,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"0e892180-16fb-4863-8169-3947800d638e","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":95,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"6c269188-74f5-47ec-94bd-f89c707c36db","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":95,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"8598436f-162a-4fdb-87aa-6d81845f0883","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":95,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"25f86975-c0da-4f99-b0ba-5bda9e30d7ae","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":95,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"1b48d48e-99eb-4205-8d33-2224d61adfa0","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":95,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"ec620701-48cf-4969-adba-3863f79667f1","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":95,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"eb4dc116-16d9-4508-be5a-36ddc23de3dc","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":95,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"b6d564b5-1ae7-4044-9ddb-6e7f127e0b63","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":95,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"21659b71-4cb4-4a76-b88b-a83c7d2b6f6c","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":95,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"c71569dd-757d-4f3e-8584-5848d8c9f52a","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":95,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"a117da0f-fd0b-42b7-a197-8a0cd9fff54f","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":95,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"573428a8-7cf5-4ee3-843d-57cd4e7e63b9","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":95,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"1caff20a-f8c5-4816-b956-a01f04cfc558","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":95,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"786bd47b-aa49-4fa0-bc47-56fbe76247da","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":95,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"7507b76d-cdcd-4ed9-ac2c-c946fbe6acfb","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":95,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"d77ad214-151d-4d30-a2b3-077a00c99481","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":95,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"2d18c3ff-1b42-4ef8-b913-5c7b87bd43b6","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":95,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"7b96cfb2-a67b-48b2-a886-27ff40c66fa1","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":95,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"113d18f6-c27f-4bdf-b3c2-58875f4b35f5","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":95,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"90474f83-258d-4b20-90d0-26cfa8ba5baf","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"b8853a90-0835-4b73-a25f-0a3aa0af31f6","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":95,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"35e7ab26-76f8-4ce5-bc2c-8b4e714aa79a","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":95,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"dc3d5782-bf1a-41e1-8dc6-d1fecb13fcf1","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":95,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"077df69a-1a36-4dc3-8b56-07333c016e8e","block_type":"box","text":"participation in the TOB Trust.","page_number":95,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"4f945b91-9a07-499f-b333-22fb8b7784cc","block_type":"box","text":"II-58","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87ae0ae3-ce9a-4528-8787-ccaaaab6fba7","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ee3a146-8986-4bfc-bc63-817d7f245677","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":96,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"8b0163e5-84a2-4a0c-bde4-a1340849ca1c","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":96,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"c62e512a-57e7-424a-b9d9-253ce8fad850","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":96,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"b9989f90-22e3-4ba2-a18e-97e800a08255","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":96,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"46042bb0-9730-4556-8378-520b99afc1f8","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":96,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"081cd372-bd54-4728-ba8e-21f4dd0350a8","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":96,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"df3c94c1-90d3-4234-98d5-8a2b3dacf54c","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":96,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"f352e6a0-30c5-4b71-aaa2-04be3cef8eb3","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":96,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"41834076-7205-432b-b5af-56a052cf4639","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":96,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"29144094-02e1-4566-be37-2bf1a027ffa0","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":96,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"a6a4e288-acee-4a8f-a517-e834068c19d7","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":96,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"7930c383-6d9d-45c7-8d9c-c482d02f97aa","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":96,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"a3e6aa37-d984-4d92-b3fb-debe558668ec","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":96,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"e1aaa223-b81d-42c0-8300-8cbbee49c765","block_type":"box","text":"issues.","page_number":96,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"026109aa-828b-4c3e-93a0-faa2b41fbe3a","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":96,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"df79e387-7ab8-4e23-893e-7b242b480ad7","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":96,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"0d75c33e-c978-4162-bc51-e46e1e7fdb9a","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"cb1e5a4e-577d-4992-99bf-99e61f74530a","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":96,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"dc5d6d02-585e-436d-87e6-b723e704bc6a","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":96,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"06278586-353e-4001-b92a-2b015ce52c9f","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":96,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"b8db563d-d1d1-407a-8b86-5b68cfa669dd","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":96,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"ddd561fb-f8ee-4d28-b8e3-f81fb6eb64de","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":96,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"31e00635-4410-4829-a36a-c13f72f6b0a2","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":96,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"8513d0ab-7b77-451e-9111-b76867685ae0","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":96,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"c0dd8acc-493c-43b1-9aa2-22ff3a817d4e","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":96,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"5bf63482-d471-4620-9c8e-47f155804b0f","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":96,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"69ee2013-cb7a-4055-be13-d1ed93fc334d","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"5fcbb252-63d4-47a4-afde-e988025fe6e9","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":96,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"57974fde-b214-4cdb-9644-b602d5ba7405","block_type":"box","text":"i.e.","page_number":96,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"d0f9fc90-3ee2-4aa7-a2b2-734770d45269","block_type":"box","text":", the Fund). In contrast, in the","page_number":96,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"80efb61c-9139-4494-a4d4-5e61b2f7a90b","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":96,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"4ba790f1-0918-480d-869e-550bedaaadeb","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":96,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"5f4b4b9a-08af-4a85-b55d-5fba973f7caa","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":96,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"61855129-4663-43cc-9d49-a4a341063c63","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":96,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"3715d88e-894b-49ad-bc5a-c279c8f47ff9","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":96,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"53f85a50-269b-4d9c-9957-f9c7effa1edd","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":96,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"607bc784-f1ec-4371-994f-5b656aebb33a","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":96,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"22072ee4-1f3f-4665-9935-5816fa6c4ca3","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":96,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"94f48b1a-d175-4f72-a0be-d36ef5537e53","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":96,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"6d4c278d-dcd5-45b8-a8c2-9315e0ffc21b","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":96,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"052a5910-e429-4a3f-a758-749d634d41de","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":96,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"b7e6c219-d6ec-4fc0-8aed-ebd1a5d78dc0","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":96,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"2ff95f64-6bd7-4092-be67-ec74b6d8f76f","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":96,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"e4b0d386-c512-4e92-837a-cba992a1bb11","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":96,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"cecaada3-42da-4711-bc88-36c667638b77","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":96,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"2221807a-e7d8-4d8a-9953-e400f94355f6","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":96,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"6a325a57-401d-43a9-9ef9-2aa54e307b90","block_type":"box","text":"Trust.","page_number":96,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"83f3d033-000c-41b8-b3f3-ab5d285c5966","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":96,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"cffee94e-dda8-470a-8450-09e3551c04bb","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":96,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"4006e666-fab4-4255-902a-5e30d3f9b824","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":96,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"2885596c-f7fd-4653-a1af-f766f460d020","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":96,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"ad0df8c3-af87-4142-8776-e40c7ba6a72a","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":96,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"cc97a6eb-ee01-4edc-8310-f02a24b4f23a","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":96,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"d418eda3-89a1-45f7-8b04-a02a0fcf362b","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":96,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"e8c5367a-5b8e-492f-b648-c09803a790c0","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":96,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"8f27a6cd-1326-4e41-a426-1fc224082c54","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":96,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"0448cf71-f242-4eb2-b557-b7d6f136f7ef","block_type":"box","text":"II-59","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88d5b38e-92b0-401c-b294-c417d2405bc9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ffed270-4fbd-49ed-85c8-fbf88fa7bea7","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":97,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"606d2222-bf31-4a32-9c05-1f13face699e","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":97,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"442bb1d4-38c2-45fb-86aa-266781eaa75d","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":97,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"5870c6b0-3f94-43aa-8507-9cfdd6408519","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":97,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"1178dde8-928a-4682-97c4-0bca89af2be9","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":97,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"8e8c2a84-1141-4223-99c6-5f8e343b749d","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":97,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"85e49880-28bc-4177-88cc-6bfd9b26fb70","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":97,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"76ce9094-b080-424e-9514-f392d04641fc","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":97,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"232a8407-07be-4d9b-a82d-8e0788b64a19","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":97,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"479a6929-8008-42da-a436-20bd4503b67c","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":97,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"83d1b1ef-124b-4630-bf50-c851f26fc382","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":97,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"5d2381c6-2281-47e2-9d02-97e192f48972","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":97,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"9f61aae9-4691-4880-b023-b741d400cfce","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"8c494459-0fbf-4b5f-8295-ad7801e09e0d","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":97,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"91e61516-ac1b-4d26-aa22-aa3400bc1f7b","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":97,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"fe088e06-d778-409d-8d70-184ae689ef87","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":97,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"08b5b439-265e-4a41-83ef-4ae3bae016cc","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":97,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"1fb072b3-1688-4268-a7be-f9954f17c5de","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":97,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"60974aa2-0283-45d9-a812-e670f2052b35","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":97,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"493352a9-acdd-44d2-a5bf-0e368f7221d7","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":97,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"e857da95-b864-43aa-b18e-b95c9d9b61d5","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":97,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"813530f4-e0ae-4c8b-9586-e2818cb3c5a1","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":97,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"fd2d5907-b788-4eb1-975a-00a7e9b8853a","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":97,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"0f3ffbae-60e7-4175-a121-6eb0532459ba","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":97,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"10c7f312-9e92-419f-9858-527240d265a9","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":97,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"6abb0a9a-59b5-4c7e-a098-732650ac03da","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":97,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"28c9c158-38ae-4af3-b782-aa70b08161ac","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":97,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"2c74685a-d7c6-40e3-a4e9-e993e26b8a23","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":97,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"eb06a231-e130-4365-b3f0-6a95d9004f34","block_type":"box","text":"i.e.","page_number":97,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"3e6da050-6396-40cd-af10-92d1a2c8527f","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":97,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"8f7d01c4-a7de-4ea0-b565-e38e60696e3c","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":97,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"3d08a845-d8c5-4cf0-8381-63919a6cd49f","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":97,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"abe87230-8776-4945-a25e-e3938e95e868","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":97,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"704ef042-5715-45ec-832b-2f4ee722e6cc","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":97,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"331444f2-e553-40cf-9d73-93a65b7d25d1","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":97,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"4e6f04d2-bdb9-441a-9de0-cdd4a43e665d","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":97,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"8c1324d6-b537-43d7-97d6-608f3483f288","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":97,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"9700e807-be8f-44b8-99dc-9c43e40dc377","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":97,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"c6ec6618-01e4-424f-b4f6-ed87e22eb8e3","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":97,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"b3350adf-6ffa-4564-b60e-ca898aac1bbb","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":97,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"ee0b3d95-8004-454c-960e-0858d0a8d60f","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":97,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"99b1cfc3-2b66-49db-a3df-5262afaf88a7","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":97,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"b6a0c80f-321a-4c40-bdb7-bab2e3640979","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":97,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"de708280-4299-4587-bdc5-54b03bdf25cc","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":97,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"0d0ef8d8-276c-4539-b94a-874862a33dab","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":97,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"c4f537e9-80b0-42e4-805b-de5a3e2e4d44","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":97,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"786ecafa-a69a-4703-b543-431dd1711622","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":97,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"b94a0f3e-d44e-4170-9148-d0a4b04e06ae","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":97,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"099cdec7-dc62-4095-a6d7-98cab7fadf3c","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":97,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"19e2deda-934f-48b0-823a-a9f34f18ac2d","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":97,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"0e61e1e7-7319-4df1-9356-227de97eaa17","block_type":"box","text":"market is not yet certain.","page_number":97,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"df68cc06-ed66-4a4c-a89c-1927b9b24816","block_type":"box","text":"Yields.","page_number":97,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"20dc0bdc-e03b-4808-9bf3-3bf0cf03ea13","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":97,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"526add2c-de4b-41ed-99b3-48b9015bf85b","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":97,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"472f041c-d58c-43ac-95e7-0a04970ae19e","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":97,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"62e41bcf-b677-465e-b9c1-e9705ded9996","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":97,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"52a25c7c-8f19-4f26-acf9-ba0316d249c1","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":97,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"6b1dc778-1326-4c28-94c5-873b83269854","block_type":"box","text":"II-60","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75a92f53-23d1-4c16-bbb9-3c81c786b133","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecb3eb13-eebc-4b5d-8ec2-7f2e96b1c939","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":98,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"062bad21-a383-46e2-aec2-ce0b33d28ce1","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":98,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"9519f706-d4a9-4e17-a05d-b683a15fbaa6","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":98,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"4a4ba28d-0307-4a87-9029-1f622f91434d","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":98,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"5b74988c-3ee3-481e-a511-a0f921c1a489","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":98,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"26a49b9b-24bc-4010-97d7-60bad051bc81","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":98,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"83c0ce4f-3e78-4447-bdb0-c1d2ebb35fd8","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":98,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"bea422f7-28f5-42c3-a76d-db11c41efb86","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":98,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"dde34601-72ac-48bc-9268-06ded93dc107","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":98,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"c23c1b43-01a6-4df1-bf25-73839512c164","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":98,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"450033ff-fa6d-4744-a7f8-303fcead0194","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":98,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"431aea06-4089-4781-9665-daa923db459f","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":98,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"5a4bf05f-27ed-4c73-aa1e-f883a5a01a52","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":98,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"aa479f3b-aa8c-4a94-9bf3-f1dbff324865","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":98,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"51faf9c3-8b5b-45f4-8c09-f1ed2d528840","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":98,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"71924d26-5253-481a-8641-d70dfad0bcc3","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":98,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"d73e7c37-0fb1-47d3-938c-2777882eade2","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":98,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"06689ae7-4c04-4d1e-8ad2-4dce707f51a4","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":98,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"fbe1b876-5daf-4a8e-8f76-476c25cb271c","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":98,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"5b516b61-4d7c-4ed8-9be4-acf006101e1d","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"e27cf90b-0fcd-4cbe-b1e2-c601b6abbca8","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":98,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"1d9be3a4-57c0-4aa6-8549-cc5e7d1ae289","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":98,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"d6f75f27-44b4-4a94-8e04-4e9fab53f96c","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":98,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"21444f89-e028-423e-8a12-2c8e29337c87","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"aa40a579-c4bb-4764-aec5-b77dfa2a11ac","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":98,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"9d0f0d14-9ae9-4a4f-938b-29f1230ab0e6","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":98,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"1f7f0461-0556-4fce-8ceb-d21889220ba7","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":98,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"08ad3226-b725-495e-bc63-0fc11623e830","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":98,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"6c42cade-f2bb-4ad0-935c-b0711e04b27f","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":98,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"b62c4d28-d0da-4698-ac14-b659de7c66e1","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":98,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"1035bd3f-c3ec-4764-9d18-e87cd64928aa","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":98,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"623ff25e-4a71-40b7-a617-534663ed09e7","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":98,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"624d6d14-c73e-4752-a071-e9e69c85075c","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":98,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"d3dff69b-67c8-4d32-a231-607b82c31258","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":98,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"d39c70e0-a64a-4d0a-b7c7-cd0c04b89866","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":98,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"59ad98c4-9cfc-4024-a5a3-f756850dbfc5","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":98,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"ce401503-0ada-489d-8f2e-224ee8dcf2a9","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":98,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"a093c064-efe1-4cee-a57d-a0faf2acf2c5","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":98,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"8e216fc7-6ee5-405b-ab61-0e31837930e3","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":98,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"f8aa4ff8-d1c9-4b76-8bf7-70a66838a162","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":98,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"075c4ff1-5229-4bba-9994-95a94cd32381","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"25cfdde0-a16e-4108-b6a5-336cb90b157a","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":98,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"1028c804-2d5f-4f0d-a2fb-23c2162622c6","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":98,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"b47740b2-4fe7-438c-ac09-0a776ff554a0","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":98,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"f238fdb9-3fd5-4e10-8c1c-5ed4351030d4","block_type":"box","text":"Call Rights.","page_number":98,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"317989cb-267a-4fa2-aee1-d2097abc0115","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":98,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"216ef92b-5b23-410f-9b88-f36cdb0de514","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":98,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"b1f1fcee-6dd8-4251-a177-a517d4312071","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":98,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"14cd4e1a-568c-401a-8560-c2350f84655e","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":98,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"f1968d90-c14d-4a23-85c5-0baefe8483c1","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":98,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"ba1c8190-2eaf-4ff3-b64e-14b365ce50ac","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":98,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"d5b3098d-be20-47b8-a981-72f8c38c08ce","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":98,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"18678809-6e0f-459a-a99d-0533e2ea31ae","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":98,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"a5c773db-52f8-4b6c-bd9d-b6a9f36da55b","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":98,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"41661727-0205-47eb-a856-5787ef3dbeef","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":98,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"e67130e6-f01d-46d2-94d2-3df3964a10b0","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":98,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"52893068-8db6-4785-87bb-15d5253bdc60","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":98,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"9f8d60f8-d51c-4479-82a1-eb4b8e84a6b3","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":98,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"23b539c6-998b-4e95-867b-e2095eed9e4c","block_type":"box","text":"II-61","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"48a110ee-c4d2-4681-9a62-4a2718b1bad3","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7337404-cb9d-4402-bbbe-6a5bd63dae7b","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":99,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"75315ca8-a8b9-4c63-b07c-127b85043e11","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":99,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"8513ee7f-5043-47e8-8aa5-d45be9256c10","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":99,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"7ec0ccf7-308a-4871-9053-e37ce2907327","block_type":"box","text":"i.e.","page_number":99,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"191d5054-0498-4951-8418-f1527e503bb6","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":99,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"64e6a1d7-7c5f-40c1-ac28-22ba4485f7e6","block_type":"box","text":"rates).","page_number":99,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"21cb9b87-1060-403f-b20d-67a553a163fe","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":99,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"09e1b93d-5505-4bd2-acdc-06cf91625095","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":99,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"7f2c9d98-dbe8-43cd-97bb-f28e38398821","block_type":"box","text":"e.g.","page_number":99,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"21058ed2-9de8-41cf-b671-ffdcfa000a3e","block_type":"box","text":", an exchange of fixed rate payments for","page_number":99,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"bd919f2d-cdb4-45a3-b314-311bf8e19075","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":99,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"39b41592-34c6-4eb9-b1a9-243089134c5d","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":99,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"e6956031-5083-4a99-9023-1b2166d72961","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":99,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"45d94d7c-4b99-43e9-8650-8440ff773fdf","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":99,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"3802fa31-9afd-4cc5-bfd2-d8b72f50276f","block_type":"box","text":"with the same attributes as the swap (","page_number":99,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"02ce09df-9050-4c11-b6e8-dc98bdc4b798","block_type":"box","text":"e.g.","page_number":99,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"c5fc1822-d41d-4cba-8327-bfd65f919373","block_type":"box","text":", coupon, maturity, call feature).","page_number":99,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"1b1a03ba-5c7e-46f1-99bb-6c0d7f9ff4f9","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":99,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"f3991160-ed51-46cd-b67d-e49cdf2cf73d","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":99,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"f43a8475-5c4b-488c-b22d-21af03cb1890","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":99,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"153c76ba-9799-4d24-8955-2c398ec4b8ec","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":99,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"a91fc39d-322b-4dc8-9079-f1b2dff2f2bc","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":99,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"05fedfcd-d0ce-42e3-b8db-00e5ebf7660f","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":99,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"4477a6b5-4c33-4bd5-8132-1e1e9c8b6efe","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":99,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"3e5bc37b-7446-4c7f-b515-0fba96810084","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"2a2a8516-2138-4ed6-aad8-44d032dd2bd2","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":99,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"ec705426-8b8f-478a-95d2-309efb8834a0","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":99,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"f355e759-c906-4284-9fc2-fd524283c30d","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":99,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"a3b03c20-e99f-41ba-9b9a-5ef07989f786","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":99,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"e332e52d-417a-41d4-9a47-61ae30108454","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":99,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"d9404bd2-1613-4f88-ba6b-3d844ecd265f","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":99,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"8538ab8d-c92b-43ee-a9db-1a64cd9b0ec5","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":99,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"5ff3aebc-37db-4cae-b658-1c37b1a29fe0","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":99,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"1291bcb2-5946-45be-985a-b22899dc2785","block_type":"box","text":"Insured Municipal Bonds.","page_number":99,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"7f3fd81b-01e9-4e8d-802c-7291c5534f5a","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":99,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"e7439aa3-f4c7-461d-a0f5-de7d0f9fadf8","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":99,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"c86d0c38-cd09-4769-8074-dd21d4af85c9","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":99,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"ecdefe08-1f4b-448e-b7e6-5525631b5c18","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":99,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"ceedeeee-4965-4f2f-81c3-4cad5792badf","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":99,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"e22529b9-814b-44ba-9fc2-6602821af653","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":99,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"d3a866ab-a515-4b8e-a2e9-785904dd687c","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":99,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"cec11362-2fbe-46b6-8d29-79235528d0f7","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":99,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"040b7773-b4bd-4cda-a2db-2cd0e8ee657d","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":99,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"2600f03b-28a9-42e9-9e7a-89d54340ae7c","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":99,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"e96a8e79-bf9a-4ce5-aa91-a7962a0e9cc0","block_type":"box","text":"bond could drop.","page_number":99,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"02c576fb-0b4e-4239-899e-60da79cd529a","block_type":"box","text":"Build America Bonds.","page_number":99,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"b8dea5be-b8d7-4e6b-b84a-2cdefee64609","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":99,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"ebb3f365-fc41-4cac-809d-7f09ddaca418","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":99,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"55dd343f-77f7-41ed-b3b3-8b957789d85f","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":99,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"1eeb732b-3381-401a-b3fd-7df4be8d597d","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":99,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"9e85a9e9-4db7-497e-b6eb-261e7072d39f","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":99,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"79cb2077-14de-45d4-bf0a-239f473f5651","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":99,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"fa3f31f6-3faa-4082-b137-4599f111e20e","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":99,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"cfe53d06-e7e7-408f-a413-54b4ed1fb283","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":99,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"6516541c-0afc-4f6c-8f68-5b7dbe3f6927","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":99,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0bf684d7-bfe4-44f9-91b1-ae2e4f4f3582","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":99,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"dcf8750f-2f86-44d5-af1c-79c1573de896","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":99,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"19215167-0f34-49c5-ad06-9d6fb778a641","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":99,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"c3d379e8-947a-47f7-9c6f-4e8797c5d7ef","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":99,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"93ff5fa9-77f8-4b7b-8df8-a742e42f1179","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":99,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"dcda77be-bde7-4a47-9d66-61716aeef67e","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":99,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"bdf78d6f-895d-4659-b0c3-00618dd3997b","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":99,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"3edba330-b8ad-4d5a-9ccf-8216588f1d24","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":99,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"8c588a36-1c76-4cc8-861e-2e3e95ffba3e","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":99,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"8492364b-f4b9-407b-b08a-d3a477be8586","block_type":"box","text":"II-62","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94e90ffa-7a1f-467b-b2dc-4f694f6bf9d4","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"609d068d-05c6-41a4-9b72-8b27b1243773","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":100,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"1c24dc4c-31d3-474d-a84a-aa65f78abe3e","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":100,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"dfb48508-7eeb-4fe5-ae13-c4c08fff4ea0","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":100,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"6f3e3269-1244-41f9-b32c-d7f4e15ca566","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":100,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"2e13e284-990d-43ef-9bd2-a844ef7ca8ec","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":100,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"d45de2ae-399e-4e7e-9bd1-cb55043be5ea","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":100,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"57696365-c0c4-46b2-9f47-ee4380ff2547","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":100,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"fa59a9af-e942-4d51-88c7-c2b0985ad4e8","block_type":"box","text":"their face value to the sponsor (","page_number":100,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"fb4484bc-6987-45a1-a5c9-87ee30948427","block_type":"box","text":"e.g.","page_number":100,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"45193408-edc1-4532-89d6-6c70a85385b7","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":100,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"9520501c-c113-47d7-97b1-327cf865c192","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":100,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"0b95bec4-5aa4-4635-a876-87a13652f6a5","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":100,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"c72404b9-825a-44d8-adf6-80b6f909cd02","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":100,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"b8b27f78-0a08-4036-a81b-77866c9bedb4","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":100,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"118b49f7-b225-4854-b300-35e6cf876d8d","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":100,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"97084f20-1ffc-4485-b58a-a2b5b148502c","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":100,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"bfc2bef7-c890-4ec5-8e73-786233ba6586","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":100,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"a549e8ea-413c-4a09-a1cb-ce0cc02a44a3","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":100,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"715fbc2b-0332-4757-bdc8-6be974becceb","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":100,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"38634776-cdd0-4fb5-ae85-04e8a3a638e5","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":100,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"148b691d-ad3f-4020-b7f0-4b2564f20bbe","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":100,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"d7f2fdb9-5a4e-4140-aa84-d9212104556e","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":100,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"aede4edb-68e7-4a94-9257-714f57ccc92b","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":100,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"f92564b6-afca-47e9-b7e5-fc3749b61b1f","block_type":"box","text":"such opinions.","page_number":100,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"000d7293-b8b0-4435-aa9a-28b416c302c4","block_type":"box","text":"Operational and Technology Risks.","page_number":100,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"977d5650-bb10-4da9-9048-696096f17606","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":100,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"47ab5093-7bd5-49ad-b880-91f39dc5f843","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":100,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"67ac3284-a694-48db-9e9c-cdd6a934234f","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":100,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"08431510-668f-4ff2-a41f-5fc5679e33df","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":100,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"ca39ad3a-f8c1-41e0-aaf5-8e7e19b84204","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":100,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"f25e3336-9429-4b8d-b1f9-5455afad7da1","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":100,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"0b317fc9-9ec1-4b35-b49c-60141ae8dbcf","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":100,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"4670115a-1947-4d8b-b75e-0a4f4024785d","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":100,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"7b685b75-58dd-40e0-907a-0620d84141a2","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":100,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"f04bfe83-c548-4b26-8810-ae3b74d62926","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":100,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"9887d16a-7b4f-4c20-b129-855ab4a71033","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":100,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"2491592c-a250-4d20-bced-052046d07f06","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":100,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"a393a8b2-53cc-460e-9804-70aaa3a2eb1a","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":100,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"b97dc2b2-afdb-4eab-98b9-74e7d1565a9c","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":100,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"da004d0f-fa10-4e58-b28b-df071a88ca3a","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":100,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"f741e1b4-c0ea-42d6-a338-37f84f81259b","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":100,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"e10f201d-7347-4d80-b9bf-f7a57e711e79","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":100,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"fa753d4f-dbae-48bc-94ef-573938328ba3","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":100,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"9e7ae8aa-fcab-492b-a6ec-457a5c8f3f02","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":100,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"81c34f94-8ac3-4c4e-87b4-5387eef5459f","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":100,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"854a5ec1-6c8b-423d-aad1-2937adfa64b4","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":100,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"39486e20-7838-49ff-8ab1-5bb113e6ee51","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":100,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"8f18bdc8-ed4d-4547-be83-8da21a98b76d","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":100,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"2d1244cc-7bce-4f53-8f9a-59156149d138","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":100,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"313938ce-0125-42f6-bc61-4b7c191014a9","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":100,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"88da5057-4e19-4567-ac61-d7d2a03270ad","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":100,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"53d2a7d4-ba0c-4b5f-8fd8-61959092fb03","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":100,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"d2636dfc-92ea-4660-901e-18e6224bfcea","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":100,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"5e48b23b-0dfc-4ddd-8b05-db2f026df621","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":100,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"d286171b-d10d-4f73-a3bd-387cfa9ced4a","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":100,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"6ac617a9-47db-4143-840f-4ee7a5eda49a","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":100,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"794ad3cd-5d6c-49e6-a4e2-028428130d71","block_type":"box","text":"infrastructure assets.","page_number":100,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"a50387be-2dcd-47d1-aa41-c393c26bf412","block_type":"box","text":"II-63","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2ad51c0-ffdb-4f4a-8669-f433f76c3f20","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77fe1608-06ee-4ed8-8467-14c953e4696b","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":101,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"5ed11378-5135-415c-bcd5-fc40e15bcd5c","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":101,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d70be73d-777d-482d-9a59-9336df248ff7","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":101,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"a8c31195-58d2-4f58-888c-db3b93348348","block_type":"box","text":"or services.","page_number":101,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"e037c42a-f1a6-4010-a5fe-5ea6022381bb","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":101,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"6c8a5d13-de16-4a20-a204-a317806ada09","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":101,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"b2024267-8225-4514-956f-4a3589771cbb","block_type":"box","text":"other third-party AI technology applications and users.","page_number":101,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"07c3ef19-ce32-47a1-ade1-bc751465ead4","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":101,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"ab0a33d6-059d-4371-b6a3-7d7b72fe7f44","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":101,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"aa9c71e6-2ace-4c28-bbdf-93da2ce26dca","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":101,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"360d15e4-3d00-4804-b420-bb1dc37a2c7d","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":101,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"b3af9159-5535-4417-b9ea-3a2a94b3ed7d","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":101,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"0f1331ce-ba1d-46ae-90e9-299e4b0b209c","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":101,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"226690ff-42e5-419a-9d87-7a4dc51a4c73","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":101,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"9e591308-b3de-4257-82ec-a078b3fb5c1e","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":101,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"87fd5e4c-fcf0-4dd4-a449-228537db26d4","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":101,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"e4dc8abe-3f02-4ca4-8db6-c52b638a9198","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"de61c0d8-f47f-4f88-adde-34559e23c03c","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":101,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"628f0af3-f1c3-466d-863b-f97de6ca908e","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":101,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"fb4cd678-8c03-4720-bdd3-6e0fc0f8f659","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":101,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"976e18dc-d2cc-4559-a67f-e9787a8b1a4e","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":101,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"d5173e22-b594-4bfd-93b8-2080dd2f65a3","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":101,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"469d1b6e-767d-4e59-bd80-fa3c14c79962","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":101,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"d5fd7b2f-b98d-443a-9780-f76f6d554e51","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":101,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"c8d8c9fc-28e8-4efd-af97-d53e33f10675","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":101,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"76570bd3-154a-4817-b816-971be4574d2a","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":101,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"cdb662e2-a60a-4791-ad2d-b63308a177ee","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":101,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"66006675-9451-4e9c-824a-808a4d012ba8","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":101,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"75da22ce-74cb-4a51-8de5-aa88dc273b80","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":101,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"f2733f41-6609-4692-99b4-a4fe68de0f49","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":101,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"139227fe-bdbe-47e5-b93e-104720966846","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":101,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"9088beff-5605-4be7-9da9-68425386832e","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":101,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"389f90d8-ff48-444f-90be-d6de8486b5de","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":101,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"c1491ab0-45a5-4a11-86c8-aacf44a31114","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":101,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"821fc05d-f512-438e-9ee3-0504c27e5818","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":101,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"8d77bbc5-da2f-483d-9f0e-9baf0b7d294e","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"419f8720-9495-4f2f-b72f-572fd1c1cb92","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":101,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"55fde122-fc35-4701-9e60-fca2a67bb6dc","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":101,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"f001e95d-d620-4f65-9ea4-4cdbbd643cb1","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":101,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"81ca8457-72be-4d4d-a6f3-1fb13fca9ea5","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":101,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"eefd4781-b373-40e6-97c2-33c16ef4fe70","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":101,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"e608b371-4196-4945-aba1-9a82694e855b","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":101,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"ef59964a-0c88-438e-a74a-1e7770bc5e64","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":101,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"18ae8b24-41a1-41c0-851a-90b36a006b1b","block_type":"box","text":"resources to monitor and implement required changes.","page_number":101,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"e1640d54-01e6-4eaf-9562-07918e14f8f1","block_type":"box","text":"Participation Notes.","page_number":101,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"1b9659fe-a6c1-4ec6-88c9-a6b5dad338ca","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":101,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"10b60832-43d6-4480-87a4-3fc0b7b74a0a","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":101,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"962617ed-26de-40c3-a513-cf5f43e20ca0","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":101,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"4fec7a3f-dd87-4dd8-a6b2-a038270afd0f","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":101,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"31a92efc-3781-4397-b041-cb7d91b6b0f1","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":101,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"c204be1c-6c65-4afd-b7ce-793e593a986b","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":101,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"e886bb0b-0bf7-4ebb-8be9-c9e18e46bfdd","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":101,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"04c85c37-e2be-4641-b3a0-f41e059fb587","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":101,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"3374ddec-1c93-4027-a810-501f67592b6a","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":101,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"af4eb1d4-ce15-4415-93da-5e9b5a49b7f2","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":101,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"c916523f-da42-4add-92ec-54f13b3e77f3","block_type":"box","text":"II-64","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2e591ea-f2b0-4f4b-b751-f60bd3560887","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e8fa385-3b3d-45f5-98a9-0073d5e20eb3","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"1cecf458-8149-4ace-b3d9-114cda0a17a9","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":102,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"350bddd6-4f6c-45d6-87e2-3ba0d0fae89e","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":102,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"816e3bed-d51a-471e-86d9-5911192e7b48","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":102,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"e0cb8fcb-ccb6-4f20-9601-bd756f34b11c","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":102,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"d9203c1c-8378-4d34-b824-698f58af9613","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":102,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"4519f93c-8532-4579-9312-7673fd98cf37","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":102,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"d97bf1d8-88e6-4a20-b760-c5becd543958","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":102,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"f4523bfe-e5c3-4cc7-a57b-5b9299dc0df8","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":102,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"d0e92518-be9d-42b4-a8d4-7ad3d61200df","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":102,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"83472342-508a-4936-b9a5-d4ffb8f9bed6","block_type":"box","text":"Portfolio Turnover Rates.","page_number":102,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"b7053999-65e9-4500-b591-596b5e422a7a","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":102,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"53406c3c-fa4c-4c2f-839e-f15ff1d30bf4","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":102,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"78abd864-b754-4dc6-aad0-12a1fd817039","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":102,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"4b652c35-6d16-4074-9567-3077ce38c982","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":102,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"97e4460f-cd79-4f8d-95ca-9d717b5106cd","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":102,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"ffd32452-9141-435a-b7a4-ab7318bfca38","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":102,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"213207e3-ff03-4c74-8182-556ca8c1bad2","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":102,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"e9b73cce-98c2-4972-b3cc-7206c1011ab8","block_type":"box","text":"i.e.","page_number":102,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"7f8bb163-e2a2-4ccf-8659-409b8bc299ba","block_type":"box","text":", 100% or more) may result in","page_number":102,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"9c2df55a-8eb2-4784-9b9e-f796b33ff523","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":102,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"a39fa9af-74e1-4b07-acb6-dced62513095","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":102,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"4da034de-591a-41eb-b7f7-337304b2fed9","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":102,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"369f9e07-862e-42b0-9094-f6f2301b2b96","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":102,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"4f9cb246-6ffb-4127-98a2-44b7938d4dba","block_type":"box","text":"Preferred Stock.","page_number":102,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"c5609f92-a10f-4a79-9cc7-c2564bb2331c","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":102,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"6071bdde-4510-4ea6-9650-8f38cbea1ab4","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":102,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"7a6c8db1-3cdc-4798-b948-059e5c6734d2","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":102,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"e04b8251-8a87-4a73-8ea7-70722d29e0dd","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":102,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"1bb6e594-bde2-4bda-a28b-846bea86c8cb","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":102,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"f5b6e9c5-be56-4cd7-879b-81bc65e50c15","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":102,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"b356aa54-891a-47d6-9029-d75ddbf206d0","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":102,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"bfa01f4e-6ed3-4151-ad52-98c3ab5b5140","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":102,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"b63eb165-23db-43b9-bd8e-a42e8accacb3","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":102,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"95421d4f-6d56-4093-ac0c-a076c0d44f35","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":102,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"6a7d866f-f899-482e-ab74-d73253cdcfb1","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":102,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"61e04c85-9b70-4676-8ad9-38acd1061918","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":102,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"789864f1-7a4c-4412-8fe1-52748d9d284a","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":102,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"77227440-92bd-4122-9dc0-e1a196a27e31","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":102,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"9ba0a14e-8bf6-4972-bb5d-8258dca227cc","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":102,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"d613c152-1046-4665-88d1-660a8be89f9e","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":102,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"30284cf7-712a-43e2-b0cc-37a086a09afd","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":102,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"e4124f4f-0fdf-4be5-875f-62a5dd78c500","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":102,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"ce2573fa-7d8c-4dde-8d4f-0d7d3f911bc2","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":102,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"2d11fa20-2d65-45df-bf5e-cb7ce3c38f74","block_type":"box","text":"Trust Preferred Securities.","page_number":102,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"9c5fc19f-2504-4aa2-84c4-d49832f3faa7","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":102,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"b81d4fcb-c765-4342-a39f-ed7aa4bbdd8b","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":102,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"2c4a266e-6f9d-4274-88e9-0ec09e25c186","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":102,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"52ea0633-99da-4d9e-a843-c97dded8b528","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":102,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"622d7c4d-6608-426d-bb0a-ff87988cac9c","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":102,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"599ac69c-a69d-4410-bb26-1a747a4abb2e","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":102,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"0958210e-4a73-4e1d-be9b-9cc126278100","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":102,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"a81430c4-7c1c-44c0-b011-b2f1ee77576a","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":102,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"33927018-b29f-4c94-a278-df53a2b3978c","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":102,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"db2d602c-3e45-4e11-bed1-f4109404395b","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":102,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"b4523b7f-66bd-4dad-bc6b-f35f3b63a209","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":102,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"61e32b97-dcc3-4cfe-a95d-c3c674514c6c","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":102,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"7d4450eb-751e-4fd4-a846-58e8dd45295b","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":102,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"8b881feb-c25c-4eac-8afd-74571aba8390","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":102,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"2bbaec5a-9d66-4c9d-82e1-4c5e9ca6aa5b","block_type":"box","text":"®","page_number":102,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"e5c7a641-0660-4b6c-b144-47bf44eda3cb","block_type":"box","text":"”); monthly","page_number":102,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"5e91dd63-24ee-4b43-b2a6-b229fdb05d9d","block_type":"box","text":"income preferred securities (“MIPS","page_number":102,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"7a56a920-ed26-4a00-88e3-9688202b7ecb","block_type":"box","text":"®","page_number":102,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"51123b58-fb09-4f5f-8da8-6e99b37fa36e","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":102,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"c4d3d03e-71d9-404f-a5ec-6e6d71f2dcfb","block_type":"box","text":"®","page_number":102,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"aec2e802-d4cd-4a2c-800f-d53dd63a61a9","block_type":"box","text":"” ); quarterly income debt securities","page_number":102,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"a5e1fdc4-74d1-4a95-8761-817ad1be4f3f","block_type":"box","text":"II-65","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47ccbe09-ae6a-4e4c-9a7c-c61a08a1b1cb","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f9387a6-9b60-436b-be3a-dbdb2b970d07","block_type":"box","text":"(“QUIDS","page_number":103,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"c5b0b946-85b4-4658-a78d-e433e2a134a8","block_type":"box","text":"®","page_number":103,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"91252d2e-0d39-4665-8bc3-2cc2c67957ea","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":103,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"87aeb67a-84db-4d1a-9bf0-e47f1bdb5499","block_type":"box","text":"SM","page_number":103,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"86f321a3-b08a-4f01-9162-8cfec0433848","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":103,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"a22fdf72-b380-4374-949f-7dbb88899e34","block_type":"box","text":"®","page_number":103,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"88d631b9-1018-40ff-9d6e-a4234f46349a","block_type":"box","text":"”); public income","page_number":103,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"9691e7f3-e089-4957-9da0-9b06735b87ae","block_type":"box","text":"notes (“PINES","page_number":103,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"064f0e2b-64a7-4efc-8b0b-1d997cd40c82","block_type":"box","text":"®","page_number":103,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"b3634144-ea3b-4280-bb04-e2cc8e46a1a4","block_type":"box","text":"”); and other trust preferred securities.","page_number":103,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"f4cdd189-8693-41b5-9dab-7db2ff473f16","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":103,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"8965e7c7-ea64-4d60-bb79-77029a6e55b9","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":103,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"6fb17411-0bb3-4a90-84df-d8afe1874087","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":103,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"7fcfe299-1784-4913-ae61-cd74e9e1cade","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":103,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"b3702d0a-9f51-4095-bad4-6792ae60334e","block_type":"box","text":"regard to whether all payments have been paid.","page_number":103,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"ff7bf7e6-288c-4790-b4f0-be75d187daa2","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":103,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"160f6a48-c901-474b-b004-34738dbca32b","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":103,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"9f7c4001-87a2-4ad0-89ea-89c2b20435f0","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":103,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"7e105f02-f170-458a-b2a4-06b6de287fe7","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":103,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"cbc5d97b-f26d-4f25-9940-a31d9ade520d","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":103,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"b3f35b70-83b8-4f59-8ece-1e680fe902c5","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":103,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"3e85274e-bb7f-47ac-bf44-117bd8219caf","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":103,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"083e524f-b147-4255-91c9-a0a4464973a8","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":103,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"38bfa728-bdba-4238-ac10-e14c20f712f7","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":103,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"f3bfea67-1d66-428c-849a-9ec78c41bb67","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":103,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"d4e98d02-e700-42dd-93d8-d7f3243371f9","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":103,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"86262418-03fc-40e7-bf45-5cb0cec85730","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":103,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"1ae41ca0-a89c-421f-afaf-5a8091f86833","block_type":"box","text":"debt securities.","page_number":103,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"47f95475-6cb5-4d42-a9a5-ed1e25fecd7b","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":103,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"ffd75900-d183-4c75-bb18-da4d15d9a428","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":103,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"43793bee-954d-4297-92f4-a97ffe512dc6","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":103,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"954bad6f-2d32-4012-99ac-8e615ea03475","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":103,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"da244793-91c8-42e1-b7f5-04f9a0fc2ef3","block_type":"box","text":"geographic areas or in specific property types,","page_number":103,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"8c3db7d7-3b58-4a4f-9aa7-6b1c591a261b","block_type":"box","text":"i.e.","page_number":103,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"dd7372ff-b1d5-4762-a7dc-b402d8c0d7e4","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":103,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"13bc5cb5-4ca7-4c0d-bfd9-70b4877211af","block_type":"box","text":"buildings.","page_number":103,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"7716653b-25af-4670-9a02-61e842a7a9ae","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":103,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"94161b7b-3e7f-434d-abbf-6cc9faac5551","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":103,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"dff0677e-e262-4459-b856-47952903eb43","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":103,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"9b295e4e-7d3b-4593-9564-05a5d09b342e","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":103,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"8aa30ae8-d5d6-474c-a3a6-a2c2c1a05863","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":103,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"0cada715-125b-40ba-ae61-28efcd675ddb","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":103,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"2edb33e7-e23b-43f2-85a0-4948993c5b5b","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":103,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"ba08432c-dcf1-4372-802f-3fb80e9a782e","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":103,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"89f32bdb-a0a3-4efc-979b-55284c0ccfad","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":103,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"b00116a3-dcbf-496d-9df4-f2379986fb37","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":103,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"5e31459f-8b02-4f25-ab53-303b933531cd","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":103,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"1f463400-bf44-497f-a74b-e316a0f6dd94","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":103,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"8e076fac-8a39-4090-8c59-a7f9fbb21427","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":103,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"9894b239-98e4-4875-bf00-c3147f1d7cf6","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":103,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"ea1f4e30-ae42-4106-a41b-6cc29ed1c02d","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":103,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"ac57d53e-cca5-4e12-9248-8bbda9cee0f7","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":103,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"23325920-c49a-4b1e-9f8a-55045e835f93","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":103,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"f281c629-003c-48ee-bdac-7d24992824ba","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":103,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"5830a167-33be-468a-9707-7fd727b69861","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":103,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"cf6be2c2-0950-4e69-a64e-f0dea395f268","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":103,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"240c44e3-3181-41e6-b919-c05623b9c80d","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":103,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"e0253fcd-1fc1-432c-821e-63531b56cca6","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":103,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"da6f6b01-a1f7-49c6-9fd4-83038e469a3e","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":103,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"37bc9ceb-3bad-4046-a96c-3402f9abb29b","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":103,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"4b506fb1-598b-425c-aef1-0ffa26d0eb68","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":103,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"e2cd071f-7642-4fb6-bb0d-c372555c790e","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":103,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"5175862b-3c0a-4965-8314-214c84dcc881","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":103,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"835b472d-5f7a-4660-bd45-82489845002d","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":103,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"6df88e60-48e8-4e16-aceb-6646ff78fb6c","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":103,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"99145b17-7ab4-4038-aef6-877d4e598552","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":103,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"5fe710ca-4f46-495b-bdf3-b2af239ab984","block_type":"box","text":"II-66","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef23b3ac-063d-4b0b-8e1b-0bfd6d8284e6","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8cd0e4a-781c-41fb-aebc-1a0058e2428d","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":104,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"4741ff12-acc2-4bf3-83da-bf7af5930b20","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":104,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"b09046cd-c038-4ce6-bdfa-189d7afa4a27","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":104,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"6ef33228-158a-49cd-befe-b4c74a2ada08","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":104,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"76eee634-e03a-4ec6-b552-c3d8fabdbaa9","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":104,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"fb458c55-6702-4164-85de-0fbfa6ab425c","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":104,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"edd474bb-b194-431c-b6bb-ec336f4ae65d","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":104,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"8958674e-00f2-46f7-8e9d-dedc26e43e3e","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":104,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"1f0f53dc-4b58-43d3-923d-faff00adc36d","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":104,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"4e71a08e-27af-4a1e-99b2-7494534ec913","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":104,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"caf77ce9-4bdf-4803-92b8-3efa1a2feca2","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":104,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"f9850ff5-b7da-4a02-8049-e8cf1e40ccda","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":104,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"3c1a9ab9-36d2-4136-bdd2-76a3a065d107","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":104,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"5e84cf45-cfbd-4c27-a7eb-75ec37a973a0","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":104,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"8a1e1701-8672-4e0f-ad1d-43c5f6e0aa1a","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":104,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"1994741e-c35d-4663-a3d7-5e3e8d99c0ea","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":104,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"7ffa43e9-5fa9-4ac4-84c6-d10714e5280d","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":104,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"9c76033b-c583-4762-b9f2-2041ae8e68dd","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":104,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"a6c2aa71-9f57-4a1b-9f56-6c09c423bce7","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":104,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"bac5161b-c5fd-42a4-97a8-48c725410e4b","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":104,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"38f69c39-ca83-45aa-9f3b-31cc6082c573","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":104,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"74ca057b-37da-4127-9572-72fbc60ab9ed","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":104,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"96cf45c8-1fbd-4f15-b48c-a42191b58a49","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":104,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"45bedc55-5808-4025-973d-5ab65e5927ec","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":104,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"16cd743a-de87-4bd1-84d2-9a0fb57abb72","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":104,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"8f504df9-f550-4274-a839-e80081a0662b","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":104,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"8c2c16b4-1d8b-43a5-9b32-d57c3eb3d8a8","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":104,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"9c891a58-5eea-4849-bc2d-d49ef9d8b950","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":104,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"f2c72568-0091-4462-8819-139dd711cd9f","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":104,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"92e10a0d-7edc-427f-96b4-4c37b36da98c","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":104,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"f85433a2-d069-4eb0-aebe-4189624e1ca8","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":104,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"8eaaa334-0b93-40c8-90a9-bd02556d4e1b","block_type":"box","text":"conditions.","page_number":104,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"e0234735-673a-44b4-a9b6-b1c63d22b9fb","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":104,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"f2e18dad-8dc8-4f8e-a876-8d3b5384f3c9","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":104,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"c35e690e-ed14-4a38-98e7-a2be19f239d0","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":104,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"0f976d19-c90b-42d8-8eab-82f6a68f280e","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":104,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"c3174ccf-c1e9-4f8a-9982-ba3f226db985","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":104,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"9467662e-03c9-4fa7-9f66-1f40e9ebb9f1","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":104,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"599445b7-b1c9-40ec-9ee0-758d0784ecf2","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":104,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"cb7569c4-171b-4ecd-bdec-a0855148399a","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":104,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"c005d7b3-0047-4553-b440-071bbc0b8851","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":104,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"cb954481-83a7-4065-b50a-35891d0c386c","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":104,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"455276f7-e296-416f-91bf-95b3ef961b2a","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":104,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b53df61e-fa0b-44da-bf3a-6c5ab7d05bb3","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":104,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"3050a5c9-c4b8-44d7-a65e-e3554e3eb255","block_type":"box","text":"affected by such events.","page_number":104,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"1c550a71-22c6-4589-bb3d-d467cd83592f","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":104,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"11fce5d8-e3bd-4511-912e-105561810ca7","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":104,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"678c349f-a619-4fca-95f6-707f317a17f2","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":104,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"2a550780-cf03-4525-aa4f-76796209526d","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":104,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"98a358c0-8e93-464d-9227-19f6f0c100cf","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":104,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"67a9ed87-83de-474b-b73b-ad4819ef929d","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":104,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"d4bc1194-07b9-481d-a8ae-8144f447d8dd","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":104,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"8a1b5e89-67fc-425a-bb0c-76ed2ac7d16d","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":104,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"d45fe3e3-3062-4eaa-94d0-45484cecc444","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":104,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"66530fb8-b9f6-478d-bdee-33e987008d84","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":104,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"3648b331-d301-41c8-8a63-9a95d208e8cd","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":104,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"261a4718-733a-4096-9c70-e1a5b8e9b0ee","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":104,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"41f8273d-6dab-4056-b0b3-981c2f2e8948","block_type":"box","text":"II-67","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34ec93c5-b1ec-458a-90ac-80a354e516c9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f3f26cd-b5ec-48fd-af11-1cd93cd0da80","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":105,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"9870b82c-2600-4b57-95d9-f1d0f1bcd4a3","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":105,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"1b25d8ce-2025-46c2-a5f6-92bea89ef545","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":105,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"ad80924b-e97b-4a3e-9f7f-239361f25d01","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":105,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"0dda11b0-9d01-43a8-b2c2-a105927281b4","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":105,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"2a8d116b-7475-433b-ac7b-f4b28fb93299","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":105,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"58284638-b79b-45c5-b6f8-94d191067415","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":105,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"8800b21b-cf7f-4d81-8bdd-8eb4b544ffa0","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":105,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"7a749716-a46d-4f12-b12d-80c32e9edbc4","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":105,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"e61cc36b-6169-4f5b-a106-e1cffb4b2fdf","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":105,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"09f0b539-73e7-49f4-a561-9163ea7cf05d","block_type":"box","text":"investments.","page_number":105,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"dfadef53-4ba9-4fb7-bcf0-7ef860b44485","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":105,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"d9a4474b-0c70-4bff-a20d-08739ebdf968","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":105,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"8c23ec34-3128-415a-82ce-47eb5cef2188","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":105,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"8ed779f9-b6cf-4158-95dd-c619ebe099da","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":105,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"e98527c1-2b0c-4b68-acad-9d2da820d18f","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":105,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"71e6fa16-41b2-495f-9903-1243a7a7e3e8","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":105,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"ec9ef2ea-5680-4861-ab32-16b57ee6e39b","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":105,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"1b9b8303-7ee5-4b8b-9f18-bba3df9a8563","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":105,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"0526c2fe-e86a-4e97-aba5-45d76bd5daa7","block_type":"box","text":"Legal and Regulatory Risks.","page_number":105,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"355a9555-21e2-46a7-ac52-f1fd5b4c49d3","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":105,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"631c5bac-7b38-4523-a9cc-9ca57554230c","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":105,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"4748cbac-d69f-4bcd-ad64-af2ae0847398","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":105,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"1c848160-25c4-4252-82f9-2f02abc7f5ee","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":105,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"227a4090-c1f1-4b87-8199-dcf307ed0a36","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":105,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"4d3173ed-e420-43f8-8e5b-a316c6c28a92","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":105,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"ce592dcf-ee02-4759-a96f-df4621ccd0f2","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":105,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"5158781e-a0dc-4776-a5f0-d2540e13beac","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":105,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"db0410fd-e2b5-4845-a2cc-507966fc7a62","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"a9acfbaa-bcec-45ef-b164-9aeda7460a55","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":105,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"9612844c-9020-4cd7-a4c0-eac8045bd9f3","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":105,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"8894f843-fe5f-4a2a-a5a0-45d62ce9307d","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":105,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"30c69373-f965-42fc-91fb-b2f3bcadfe69","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":105,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"147f48c0-da00-44f6-a80c-d5a24f4acdcc","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":105,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"7ce62ec3-e30a-4758-a0f5-e1cff4ef5501","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":105,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"72bdd2c7-6209-4f6a-a08a-ae3a4ff10e28","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":105,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"e9b9cbda-b465-484d-9b9c-61b42be56d9a","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":105,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"89e9bd8e-79ff-4ae4-aba0-cb3b21bb29ce","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":105,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"5ac8544f-fc23-438e-91fb-2462e3d37e84","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":105,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"c5fdfae0-6d03-4363-8811-2d6a87c31659","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":105,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"691531eb-b0f6-4bc7-bde2-56491f6c2019","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":105,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"a768aa08-e28e-42ee-8060-ae2c9b26c313","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"d560c536-9c5a-49b6-94ff-54db7a92f782","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"77b468cb-d3d2-4546-ba98-c3b4f9d2e6f2","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":105,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"14f52525-a05f-45b1-a982-a22958ed598a","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":105,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"8dd34066-a021-4841-8536-c4cf0239ffe9","block_type":"box","text":"Geographic Risks","page_number":105,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"d8aeaf2a-c6b0-4c6a-afe8-a7e5421503df","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":105,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"a2e97724-66cf-4403-a536-d6400567a939","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":105,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"4bbd9ad0-1036-4378-80f5-8e02200b3048","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":105,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"16b6ffdf-2787-4c20-a757-e135880242d8","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":105,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"cd35f48d-91ec-4b61-a0ea-cbcf883b8b5f","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":105,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"246dacbb-cbc0-42c2-b8b2-a354b26518ba","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":105,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"431ce5fa-46ca-4df6-b30f-c094ed23225d","block_type":"box","text":"Fund.","page_number":105,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"ad14c48f-b396-4593-985a-418396b98286","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":105,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"aafdc2f9-9a85-408a-a2dd-7f6830d56e4e","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":105,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"187c89dc-22f1-405a-8c03-7f028fb0f196","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":105,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"bb5202c5-93d5-4663-ae59-374a38b6a7cd","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":105,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"cc2d7e59-2151-43d7-bf74-26a238c737ef","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":105,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"6f498186-4808-43ef-bd33-859b3a62a7f6","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":105,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"ee1e08a2-b1c8-4355-8181-ed4993615959","block_type":"box","text":"II-68","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1e9603c-16eb-42ff-bb7f-0baebd93d514","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20787458-0bab-497d-844c-c282098438e2","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":106,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"84eb056e-3e2d-4f4b-9214-548f35a7c3a9","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":106,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"5349b573-e7ac-4b3d-b7f1-0e152d506640","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":106,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4879cf13-1369-42a4-acec-ba91eb754506","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":106,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"f9f02406-550f-45e4-83d3-500e4325e324","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":106,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"3be27bae-d6cc-4511-82c9-44993818193d","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":106,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"958ede51-412c-4855-9772-d83a43c24c21","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":106,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"05de6da9-41d3-4a96-b3c2-ea37e381dde8","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":106,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"c30f1e67-fa50-4434-856a-3eb3d09ffe7f","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":106,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"a4bd3520-58f7-4135-884d-cc4f1f3578a7","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":106,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"6ab2e887-fb87-4c36-b756-af1a20db5008","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":106,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"af75c7cc-5f5e-4678-9030-8dfb88a6a5c9","block_type":"box","text":"e.g.","page_number":106,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"092dc537-2026-485c-8746-176bcdb192ed","block_type":"box","text":", SOFR for","page_number":106,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"55481cb3-0576-4521-a88e-455c2ea28469","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":106,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"7a350b6a-7cb4-4785-8821-7b1d3463c0af","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":106,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"54bbec7c-bd7e-4148-bf89-2385496bf3a5","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":106,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"24d7ba58-f333-4893-bf26-8a12831c68cb","block_type":"box","text":"determined.","page_number":106,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"19bb16b3-03d1-4029-8cc0-0afcaa02378f","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":106,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"294ac934-154b-4aa8-8fd2-31d11c333f2f","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":106,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"6a67d87c-8375-468f-86c3-d10d0693e808","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":106,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"261d3235-1486-4c08-8b88-8d4074b35945","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":106,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"9b8cae98-feef-4cd8-abd0-d1b21cd50d45","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":106,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"d4e6055e-d2d3-4abc-bb7d-41dec75a14d0","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":106,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"338c8b88-84c8-44ac-8647-8bca33570437","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":106,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"8f365d87-9c92-4f89-a50b-db227de6e97d","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":106,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"dff4fb10-b98f-4953-8abe-dcaa4e523dd9","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":106,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"3bf1160c-62ac-485c-9ca2-42756ec0e4fa","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":106,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"be774344-f3ef-47d9-b931-f0717b12aa00","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":106,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"e60959c7-3111-4f7f-8bdf-9507438ec8dc","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":106,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"b184329b-d9f7-479f-9595-ae2a3a2af642","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":106,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"e0a1ea40-063b-4caf-b828-f1478967d3af","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":106,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"7e84dc93-50e3-42dc-b673-20811ff78900","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":106,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"6e1cfcf8-8811-43d0-8415-cd6c9980da50","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":106,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"39db38da-717d-4786-a3b9-4b5dae142d4b","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":106,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"0c4cb8c3-c3d7-49b2-a808-d1ef45b27eb8","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":106,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"50d6e39f-af1d-4080-bb79-8cce04e20718","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":106,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"980e3f7a-5172-4ca1-a30a-ce1bb55f5424","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":106,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"f7dc9580-5f88-4144-a515-5a140519f8d7","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":106,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"2cb06ae6-afac-45e0-93b4-e80b392b7872","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":106,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"55affdc8-1117-4fa6-a9ea-1250cbf5b5bc","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":106,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"369352b3-8cfd-4574-9b57-af5df0e64e6f","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":106,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"db79bc52-17fb-4820-9997-ae7cd3280062","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":106,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"78218177-10a8-4998-a128-ea45f3dad161","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":106,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"fabe96a3-b2de-4cd6-99f7-9d9c2f96a080","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":106,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"6b8afcc8-ae51-4674-9a96-e332e07bf945","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":106,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"c874cac0-9eea-4816-b216-e8d053df3441","block_type":"box","text":"consequences which cannot be predicted.","page_number":106,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"1b9f32a6-e7a8-474c-9537-13072220cad5","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":106,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"d83366cf-0b1b-4f89-99df-ad4c313e5636","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":106,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"71dec7c7-ae43-487f-95db-b7c094b7836f","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":106,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"d382e9a8-43c7-4202-a6d1-28fa1cef7e96","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":106,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"9fb8d9aa-2809-4c1e-b479-bf4ca6066f43","block_type":"box","text":"term of the agreement.","page_number":106,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"7a3cd042-9ec8-4529-9323-e3fdb3bcf169","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":106,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"6fc868ea-d0f6-42bc-8c2c-101dc65a3ae1","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":106,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"04e4a931-f432-4972-aadb-322ad6a574d7","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":106,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"3d6285dd-e84a-4c9a-a6a2-c144eb183ff0","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":106,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"acf5e547-f7a6-48df-9cc8-b6d284737e94","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":106,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"ba527108-8001-47ee-980b-1e5f2b79f0f9","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":106,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"7b5df5b6-a0de-4284-bed3-7aa84a120aee","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":106,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"9dcad1e6-31f2-4977-b9c9-d9c065f67cde","block_type":"box","text":"II-69","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"038b559f-13e7-4aaf-8d03-9638d6e40e98","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7328f51c-a7dc-4d0d-a4ad-134ad1628e41","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":107,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"8cd05439-c567-453c-bfec-001f6880751f","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":107,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"375644c4-c5f4-4a1e-b704-f751f14c9d94","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":107,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"8df713ae-b924-4407-8786-202a3f6a32be","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":107,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"7afe2be4-de7f-432d-8844-afb8082288f5","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":107,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"719215f4-d9bf-4a50-8263-dd5c675d37f4","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":107,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"63f3863e-db72-420e-8a8a-ea576511c452","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":107,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"294bb0ea-4671-49d7-96ea-40cc5a3e3026","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":107,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"8fc921cd-4f50-4b23-b61b-03cfaf661cd2","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":107,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"48010e0d-18d4-4068-be82-e6a62b895186","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":107,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"229e3ab0-c799-480f-9ee7-3900b6e0339a","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":107,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"2c31b4a9-9d06-4d29-ab16-7951d602138b","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":107,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"97e06775-0f1c-4c68-92ae-028d581697b5","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":107,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"5a4802be-e7b8-4dc5-a32e-a7211b40191c","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":107,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"132d0a86-84b2-42a4-b416-fb0a8bca6798","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":107,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"5de72d42-f981-4d2e-843e-80af64600447","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":107,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"8ca5c4d6-3797-4a34-97c9-a71e0c82dc3c","block_type":"box","text":"or by another authorized securities depository.","page_number":107,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"485b435d-fe8b-4f52-b1cc-98eedb41225a","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":107,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"9ce5a1f4-7cfe-4cf4-9101-6e9809ee507c","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":107,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"b7e9dc9c-01ba-4c44-a8d1-5e90ce9745ea","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":107,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"da7272d5-c27a-473f-80b4-5f879487a712","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":107,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"ed58273a-1118-42cb-81e8-1ac164f6dcb5","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":107,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"155c27f0-c35d-4271-92da-a835c164c60f","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":107,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"9bb0454b-a127-4d7d-8f83-799cea04a37a","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":107,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"bb2657eb-f09a-4343-b9b0-42b56aac975b","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":107,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"13dbdd6f-2208-4ae2-97df-5e3c5c5258d2","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":107,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"9e1cff75-99ba-4e35-9614-ddef0de61baf","block_type":"box","text":"the repurchase price.","page_number":107,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"bceb9eb9-d74c-4dd4-9cf6-79c2c731c5dc","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":107,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"319a0bad-0498-4887-8da2-99e852639ad6","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":107,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"e4f33a8b-3eb6-4052-841e-a9bd90f7e139","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":107,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"f5c6b925-6b6c-43cb-8236-6004d4cba2af","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":107,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"dbec6089-a1db-4345-9b5e-38829520e61d","block_type":"box","text":"strategies without the repurchase obligation.","page_number":107,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"f6a2bd54-435d-4f93-bbde-20c5cdf3e2d9","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":107,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"79e71b0e-c1c9-4d4f-ab2f-516acdd3b23f","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":107,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"f6c694d6-652d-427c-9083-861d1096546c","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":107,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"c5424623-9378-47fe-a1c8-ada4abd2a07a","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":107,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"96950050-3de2-4dcc-808c-22ed53651cde","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":107,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"52573592-5f85-47dc-91ba-5d1b44e79d9d","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":107,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"35249186-e9d1-42bc-8614-c09e1261a21a","block_type":"box","text":"i.e.","page_number":107,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"296de9eb-4b17-48da-89a8-f44469a81e4a","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":107,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"c5a23596-d8f8-4ddd-add2-a6c55dad36b4","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":107,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"47178f1d-fece-4119-83ee-f5827224dd59","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":107,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"de8623ab-bb1b-4f9e-82fb-437dc32917b2","block_type":"box","text":"and income involved in the transaction.","page_number":107,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"fc217225-02d1-4e35-aabd-9ae2005fb0d9","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":107,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"942c9dbd-6bfc-4a0e-9fb6-ecb0678b24ac","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":107,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"fb1798f6-7340-4620-8341-d5df1896d557","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":107,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"f4637d37-9c15-4443-a370-bbcd851d11ea","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"f4bf8c04-e7c0-4995-8410-2f8158c7dda1","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"26c930e7-98f9-49ec-bb05-615efb9b5534","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"2c2f92f2-6599-4b04-bc88-3d25c8179bab","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":107,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"0a41d8db-e15e-40a2-8498-7cd536aa128b","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":107,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"cddd7a49-e0c7-40f6-a1f4-c04ae539dc16","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":107,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"dac4f804-5f4a-4095-b67e-866af76dd386","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":107,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"2a291ab7-4fc4-4ac9-9643-67eb4123c262","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":107,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"e0523a7d-cefc-4b99-8a78-95459b338476","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":107,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"def86c1a-97ca-424c-a567-7ecec87ec070","block_type":"box","text":"Restricted Securities.","page_number":107,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"101bf25e-a817-4f1f-9eb0-780ef10805a3","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":107,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"507696e7-cd27-4b91-a07f-e4e226163d93","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":107,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"d84ae6f4-e74f-4f45-83db-947271c33983","block_type":"box","text":"II-70","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20edea63-c728-47b0-b125-db1318d40707","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c18adbc1-58f7-420e-9d91-14b3d2a231be","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":108,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"806d45f4-a2cc-48bc-bf32-0c631adb18ea","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":108,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"e5c08c19-c4f5-44f5-9dba-de2a6c1ef3eb","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":108,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"88b731b9-8eec-4bc8-b11d-b1c4ee6003d4","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"e80b1c66-8fc8-4fbd-b496-4d1a9ff9e683","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":108,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"e29072ad-7415-421d-8542-1a8045d9bded","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":108,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"46d9117e-1fdc-40ae-a7ce-18d8216d8749","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":108,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"8def72d4-9966-4947-a2dd-0bcb32774fb8","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":108,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"f5df59c8-cc67-41ad-b2e7-4925c4966787","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":108,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"e5fd7ea4-c763-4db7-a7b5-7423e856efac","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":108,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"f49ec78e-d5aa-4a69-bb22-a877f8ea18d2","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":108,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"28edc738-183c-4f51-86fb-beca70667ad5","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":108,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"0b3e1ae7-29fa-40e7-8faa-823ef846ea75","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":108,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"d0ad50d6-a20c-47ab-b9fe-0a0feba790c0","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":108,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"fc39ae3a-7a53-4364-8f22-9d2059a87291","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":108,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"e5dbe212-6886-4b17-93df-f51532cb480d","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":108,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"bb6661bb-ae22-4975-9af5-af61c7bc4519","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":108,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"eeefb52e-a5be-49f2-a4f5-e8039862a77b","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"f169e4ab-2de4-40b9-81ea-994acd6053b8","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":108,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"30117528-ed13-4269-9ca4-563b516d5eee","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":108,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"94d3f216-b43f-4cc4-bab1-60145c878c98","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"df7edda3-cf6b-48e8-b047-3196655cc961","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":108,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"b5580614-3015-485f-8f40-07c5a729fc0c","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":108,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"cb7d4b09-fef7-4b17-8fda-9ad01feb61e9","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":108,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"e62bfc99-6050-4f01-8ab4-b01083c1e662","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":108,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"3bd37d2d-4ecb-40a7-8541-ab1dad6cbbca","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":108,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"c84bc9b6-a057-49ef-88c9-07c60216197e","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":108,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"5878f943-258d-4cbe-ad96-4433edf3508d","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":108,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"a47b8bdc-9f73-4cda-a422-655ca80ea815","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":108,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"2ea759fa-e134-48a1-88c9-529e9e87f9a1","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":108,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"c9166973-2512-4f7c-96e7-3f2e746e2fae","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":108,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"297d0154-2182-4ab4-af45-3728fe1505fc","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":108,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"b462f7df-63ec-467f-b593-da82dd53be13","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":108,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"17ab2627-8c75-4a47-aa1c-0186000835f4","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":108,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"b7f80c2c-fef4-42bd-9235-b1ff008cf365","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":108,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"281d9acb-599f-46fc-bb2a-0614b26af38b","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":108,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"ae5faa51-db16-4410-94d7-a031cb9ee26f","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":108,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"27ac675f-6398-41aa-90cc-37a43c9e53db","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":108,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"a4bd9a26-632c-4547-b00e-af8b82d01e90","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":108,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"43f301c9-5a6e-484e-93b8-26d9d4184a20","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":108,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"eb4fc190-74f8-4f90-94b0-5b39c635f8d4","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":108,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"a4cc43e0-0b9f-4e72-b9c7-532804e3e468","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":108,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"f9d72b38-8395-4aae-98e7-d7a6c83fe9ba","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":108,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"a56a6024-3ed5-4602-a1e8-a7cef49888df","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":108,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"48c250ba-2858-4a98-b4cd-bc232dcacfca","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":108,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"b5b7c42c-2b7a-4e66-93d7-0bee113c595e","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":108,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"6e7159e0-b79f-4c54-8930-ba2abcbff0b1","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":108,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"f6c9bb88-296d-4db6-8c65-0e61ce0e0a68","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":108,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"d0842f7a-37dd-4ca8-bff2-7bb02f214ecd","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":108,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"1edf4e05-356f-4d12-a34d-9b07eb921321","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":108,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"38cbc967-8688-4e41-bf6e-de290798cfef","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":108,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"d7c05aea-7191-47a2-a447-136fa001f4e9","block_type":"box","text":"especially as that Fund grows in size.","page_number":108,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"0bb0ff7b-a534-4006-9f28-07c889d50bbe","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":108,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"41280e6f-7749-4e5a-9dae-9ac903d69c26","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":108,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2792188c-e6ca-41e3-b812-58842b419c13","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":108,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"58327ba9-c5f4-477f-9988-670eb9c893ad","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":108,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"e94a41ab-206f-4687-9ec6-329ac31dce69","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":108,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"fbdbbf95-f820-4c80-9bde-cc610d136530","block_type":"box","text":"II-71","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34bc4270-5d4f-440b-867a-df434c755e94","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bd9768e-e5f0-42c4-887a-1bc5df0608b8","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":109,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"190a3c5a-d7b9-4311-b8f4-5d144dee348e","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":109,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"b1277d7a-e0eb-405d-895c-f3155b24acde","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":109,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"5f5538bb-a23d-4fca-a86e-b693fdb156dc","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":109,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"d2bab021-b933-438f-974c-5c2fd4ea91e5","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":109,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"5241f6f1-d8ae-4f96-b6b5-11cd3d52c1aa","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":109,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d5d85046-a2f2-4d97-9540-c1626900c621","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":109,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"8bff46a0-1076-49d7-9ccb-00057f8f2750","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":109,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"7c0d0952-7a27-4e33-8f28-c8d4493e841f","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":109,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"3ecbd7e0-ce9f-427a-abbb-b52523811811","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":109,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"b0378b78-490f-4ba1-9567-8bc2ff349da7","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":109,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"01574798-79e2-4a34-83f7-3e1fa019f0e1","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":109,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"a58c092e-3e7d-42ab-8f40-fd9f8be59c45","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":109,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"45401ad8-ceb9-4911-93cc-f93d0cad50c5","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":109,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"776b082b-9cf9-478d-a3ce-6001f1f35abf","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":109,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"3d2c38b3-69c2-4ce5-a99f-9009456ddecc","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":109,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"3f099613-19b6-44bb-8d5b-cc3b4d5b0319","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":109,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"6403a7e7-2938-4c24-8550-d69d939cfcbc","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":109,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"60cae8b5-62b8-4fb8-ab91-e0a0dea7f806","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":109,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"96cc10a6-0825-4801-8027-ec021b2353ce","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":109,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"22288985-ffd4-46b2-8b70-c8b89b75e3e4","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":109,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"3aef36b1-4767-4374-9f36-0b286ec22ca4","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":109,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"06624ba4-6ee5-4e47-a279-6d3a32ce12aa","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":109,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"ef17b60b-e042-498a-aab5-4cdda78c396c","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":109,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"12fcdcca-f048-4cb8-8b69-563965f1e49d","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":109,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"c73f3c78-b99e-428f-92fa-b96671956ebc","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":109,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"23b756be-ade1-4b5f-b702-fae7b5a64c8d","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":109,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"5b1ff53c-3da4-4a59-bc45-83184a087420","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":109,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"6f4dc671-7373-4686-a0ae-359c87c6a6c0","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":109,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"df9663cc-9e2d-40ef-96a6-cf2915570a10","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":109,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"3c2596aa-626e-4868-adaa-bd19588cec8a","block_type":"box","text":"similar financing transactions (","page_number":109,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"3fb30069-e458-4286-aa4c-07601735c358","block_type":"box","text":"e.g.","page_number":109,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"e571e413-7e5f-42f0-b322-cc854453cd78","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":109,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"18aeb0a7-9c44-4d44-8299-bd2301ca4bb8","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":109,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"bb859982-ee6b-4d39-9f97-57abc56d3b77","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":109,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"ba58778c-a59f-46c0-9ec7-8d1db51f97c7","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":109,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"842fdef5-697a-4150-b803-703d5666a0c8","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":109,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"826243ae-3cc4-47d6-b0ba-5eb536da4229","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":109,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"a1b469b1-ec58-40ab-aa4a-067a5989e02a","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":109,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"635f1f6f-35e4-406e-acc3-06e61e39cf62","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":109,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"43ec5104-c363-4190-9028-0c7c9de6f95b","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":109,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"e50b3aaf-8931-415f-ad48-af40a38b001f","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":109,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"fbfa053e-82ea-4ca2-b60c-f7fe13dddd1e","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":109,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"1acf016c-196e-46b4-81fc-562cb08cc5e4","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":109,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"ba2065c3-4924-4d62-9666-4d9bb5e42026","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":109,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"8eeebe26-f640-4465-8245-ec05000b3e4a","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":109,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"5ac46182-9c65-40a9-bb04-bddb999aee00","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":109,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"5a69e42f-b792-40f2-8b78-8cbd72ab53c5","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":109,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"f2184193-30ff-4f19-a1cb-b76ba308351e","block_type":"box","text":"amounts to be received under such agreements.","page_number":109,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"8765ae77-8c0d-4411-8a39-d3ece5a05403","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":109,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"e1e4c43c-a4f9-456e-b16a-713ecb29b6b9","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":109,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"bb7a9eae-6a6b-44b7-a86d-1df6b61077aa","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":109,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"6ed8d608-de6d-4c94-8a7d-40e93b92aa47","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":109,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"b819e635-9ce3-4619-bf87-ce673537118b","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":109,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"c929b5dc-8da0-42bc-9790-d1dc701af93f","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":109,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"ab20401e-383c-4c70-af84-010f3f33e1a6","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":109,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"bf6767e6-30b9-4971-95e1-4a772355386b","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":109,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"0ede920b-ffa7-4737-845d-89af10ad5854","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":109,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"6272cc01-0188-481a-beb8-b8f9e9f92758","block_type":"box","text":"II-72","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4dfc836-be5b-4520-bbeb-583d071800ec","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ef5884b-9edf-4048-99cd-64ad90e0e604","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":110,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"f66cb7d8-be48-4670-ae14-832e38103069","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b926d31b-8e1b-4c9e-bfef-1a961e639f37","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":110,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"a6a4d764-be17-4d17-a04a-b8b23cced8bd","block_type":"box","text":"Rule 144A Securities.","page_number":110,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"84f56764-35e0-4a20-920b-84f3d84580a2","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":110,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"5053fd10-31c1-4df2-9270-2053a466d4b9","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":110,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"a7174e5b-58b2-4c3e-875a-5eb1a6076cd3","block_type":"box","text":"Securities Lending.","page_number":110,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"0a26e04b-43d3-483e-90e9-bbabfa8ea3e0","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":110,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"49c7e6ea-bb04-4a2c-89c5-b2cffdb57827","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":110,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"fcc48230-2994-47f8-a914-1010fa9f4628","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":110,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"318f5289-9383-4d4a-bd05-0451135cf76e","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":110,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"48401498-4d14-44cb-a130-e0eac6af8ba0","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":110,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"94d21237-39c1-4936-b7ab-eeb901b462d6","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"19f286cb-9a34-4e82-8ed3-9498872ac56e","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":110,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"0a6d28f6-f857-4a4b-a5bc-904921c5f8e9","block_type":"box","text":"the securities were not on loan.","page_number":110,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"f95fd7d9-6688-4a8e-b524-e8f37713e087","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":110,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"bc4b68e6-ffd4-45f8-8305-1c7e66c71423","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":110,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"b352ce0c-8812-4488-b3c0-8086aa3234b7","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":110,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"e3cb5fc6-68ad-4921-8d1e-65ed1df2b9d6","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":110,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"18dc75da-cf56-47ed-b04c-7491095add03","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":110,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"a13d48d4-dab7-45dc-81a1-eeab36548e22","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":110,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"65109b31-d862-4ad2-8169-6289cbe931a5","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":110,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"85de73d4-c188-4e0d-8bd3-dfbb89ba3f10","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":110,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"3b78dda7-561b-4266-9542-cf11dfd05744","block_type":"box","text":"i.e.","page_number":110,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"6218a64b-d582-4c3c-87a2-42bfcdf3aa0f","block_type":"box","text":", the risk of losses resulting","page_number":110,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"9a366457-7617-4b6e-93d1-7e672f951070","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":110,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"96bdc506-f017-4e7d-94a3-dd66daf6b857","block_type":"box","text":"i.e.","page_number":110,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"3a169605-34a7-4ea2-85ab-19650665da17","block_type":"box","text":", the risk of a mismatch between the return","page_number":110,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"453ff555-9e6e-469b-98ce-96e7c02d564a","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":110,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"c87ef6b9-79cd-478f-92cc-228c5776f8eb","block_type":"box","text":"i.e.","page_number":110,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"ee5b6388-59e3-44f1-b43b-9712125011bb","block_type":"box","text":",","page_number":110,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"73db5bb6-aac2-4672-9d07-8880f37c1c94","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":110,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"b3a67a94-fd30-49d8-8de1-afe2e7834ef9","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":110,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"0a408ec8-6a6c-4132-97de-c4cf4b130987","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":110,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"f9abf167-477f-45b6-869b-7e91b537daa9","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":110,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"71defdb6-ea20-4e15-a9d6-29fc10e3671a","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":110,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"3620f487-47a4-4dd1-9c8f-ae8b7c0d865f","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":110,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"75d08e3a-fc24-4ba0-8acf-bfefcc067653","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":110,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"165e21be-6960-484f-82e4-fa917c4d0070","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":110,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"68e13c09-f778-4021-b75d-199431e377f0","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":110,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"cec3ffff-82f3-4926-af98-54b339422a27","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":110,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"8a65d6d6-dd87-452a-9bda-b7247257e64e","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":110,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"cf4dee91-d355-4f6d-b4a9-dcdf83f69da8","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":110,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"9206526b-1c33-440d-a776-69ee67d130e3","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":110,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"2149a58e-59f0-4bd4-b797-aa2cab997f46","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":110,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"9962a462-16c2-424d-9b5d-3c7b656dd1e8","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":110,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"93d72453-1996-43d4-8276-70311521ab3c","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":110,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"ab5a42ad-7f77-4fa3-b107-ffe18f5e2773","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":110,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"533eee08-7dce-49f2-8aff-f61463a68618","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":110,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"e4f589d5-ef08-458d-90a5-1f8d9f199f50","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":110,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"37579356-98fc-461a-90ee-8bbc2002a46e","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":110,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"017eae81-15f0-49bf-bfc7-7604866b5e0d","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":110,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"5922b5c9-2b37-44bc-b6da-25ce761daa87","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":110,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"ebbdaef6-bd44-423e-be70-939f4d7a7c74","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":110,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"db76e96c-bbab-4c90-b4b2-fa793903fcbf","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":110,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"0af7f897-d8dd-49d0-b822-fc59df69406d","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":110,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"62eb8158-55cb-4fa1-8a58-adf0cb8a4000","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":110,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"838bc0b9-e41f-483c-af22-6d11bdd93fec","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":110,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"01be5f76-d20f-46de-b9e0-d6eb305b6f87","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":110,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"e742d4f9-b523-475f-a07c-5df898d2e20c","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":110,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"9b8d2259-e763-478d-bf01-d0dfdc1ee701","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":110,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"08e37bf5-1518-4984-88ca-285daae2808d","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":110,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"fdc8eea9-63bf-4603-8cfd-9eea6ba8fcdf","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":110,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"7f847ea6-3c52-4758-b256-b6f1373a1311","block_type":"box","text":"II-73","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44ab5db5-961d-4254-9ebb-6afe9face0d3","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efbaba38-6975-415a-a5fd-0588353d046b","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":111,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"10fa557e-4b57-4493-926b-e43bac22dcad","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b126a52e-4e6b-4153-bc8b-ab1a597728e2","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":111,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"650504bb-99cc-4892-b275-09926609d6ef","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":111,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"d474df75-b5c1-437b-b3b1-675b02b4996d","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":111,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"644d8034-75a3-4e77-9745-ef80df560b00","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":111,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"c1a81995-d17f-40a6-9625-ab88ce709c54","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":111,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"d9fa2629-76bd-4e68-bb0e-8d6ddc3c3f66","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":111,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"cad05156-8f51-4871-8546-1c23cafc0848","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":111,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"e16b3736-2fce-447e-ab07-0b486634666f","block_type":"box","text":"the current expected compliance date.","page_number":111,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"beeefaa7-401a-4f6b-bdb1-3b8d45920755","block_type":"box","text":"Short Sales.","page_number":111,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"dabeb663-0c06-49d6-93c0-743bb98bada8","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":111,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"e4a11a1f-741b-47ff-ac2f-b207c588da2c","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":111,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"afe046ad-dccf-4f3f-b397-a5343635236d","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":111,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"891eddc9-4e25-4c96-8ac3-425a5a2d4e57","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":111,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"24f3da26-7aa6-4f71-aa0d-411cfe5e8034","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":111,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"1f627583-eea3-4327-b986-ec7e967ff2c0","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":111,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"b15289cc-88da-4b3d-829e-6673519c4bb9","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":111,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"8c284e4d-7875-4fdc-a303-13ec730e5109","block_type":"box","text":"securities to the lender of the securities.","page_number":111,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"21b61ba7-b30f-41c2-8889-323b0f11bd99","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":111,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"dc39441d-4266-4c26-a79c-9f590853a290","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":111,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"f5679931-b57d-4d19-a30d-3e770451ae8f","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":111,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"b68b6431-b013-41df-83a1-bc4a23f4be6e","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":111,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"5edbf57a-5b5e-452b-b208-35e0ae4f3d3f","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":111,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"ad6004af-c6df-48bf-9956-d92c160a6c7d","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":111,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"b60157ee-27a2-4b1c-abd3-79bc4532b6b4","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":111,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"b26899ed-11e7-4a23-8b11-46c3349268b9","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":111,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"fa1b5bca-c217-4976-80eb-c5ca3d6a91a6","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":111,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"4e1674c1-6082-49d4-883c-f0b6418c7579","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":111,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"15de1c2d-4f8e-420b-b9c4-e43a7c57c61e","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":111,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"fa550f93-adf3-4c71-b61a-af7cb59a464d","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":111,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"c39f08cf-fc16-4b55-b36a-89f89992281d","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":111,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"dbadce63-5849-4818-8f10-c7dbf843c3bf","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":111,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"ab74f8ae-6303-41be-9c11-e2cca2e0544b","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":111,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"9f5c96ac-64b0-4fb9-8548-e018f0322611","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":111,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"f4dbd853-c5fb-421a-a32f-d1a4cc0634ac","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":111,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"21ecb8c0-eb2f-4fd4-a9d3-b826da639c88","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":111,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"137b8841-27b4-4ed8-90d7-16a016f97830","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":111,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ecb548ce-b44c-4b3a-8c1a-9ea8bf90a7c0","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"dfe8e7bd-727c-4b0b-b954-9602797cfe12","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":111,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"881c1238-bb5b-4137-99e9-aad1af708984","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":111,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"9f0c47c4-d086-4214-8864-9b45770e7f17","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":111,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"eb18af87-66b3-4a3f-bdf0-77221e674d79","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":111,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"c884a796-4f98-43bd-863b-ec2649541b78","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":111,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"3565b072-9bc7-4b0f-ab17-48b2da89f76f","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":111,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"1a67fb17-cfe4-49bb-8fd8-3dbb5c5cca7c","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":111,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"5316bc8a-c971-40b7-8ead-113c33c6e425","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":111,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"7456d3fe-9413-46c0-b447-56cf3b1697ff","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":111,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"df720e0c-edef-43f5-9109-a9453a3a800a","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":111,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"13669cb4-4ff8-4c00-9b96-8d9fe4fcfa2b","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":111,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"80dc6cd1-cde6-45aa-a945-f05de61e2835","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":111,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"92ef7000-357f-4d71-a93a-8da8947f51d9","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":111,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"c7eb53a1-088f-4472-82e5-2de3fa5136f8","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":111,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"e1e02209-ee08-40e9-bd19-fbbc6678c46b","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":111,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"e47e5354-a2e9-441e-b56f-6aa97df8f70d","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":111,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"4c9c6342-0378-4853-b8e2-45bb00255e5b","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":111,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"ddfef172-84e6-4943-85b2-c23d032744f1","block_type":"box","text":"II-74","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4b6e976f-fcc6-44db-868c-1acf5e8d0378","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37c328a7-cac2-45b3-99cf-8706299231a8","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":112,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"c44ac219-7c09-4a9d-83cd-866da45e80a9","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":112,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"ebe7a0ee-6c70-4931-9649-304568fd2fc0","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":112,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"05843557-f6da-4980-9759-28f2b166a6ea","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":112,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"1f65f8b8-2e8f-4d51-adce-e818865a1660","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":112,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"2806d970-4d99-41b9-8a56-4427636ad5e3","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":112,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"db4462fe-8814-44c8-881d-47e462706ab4","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":112,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"aba18ec1-a030-441c-978c-71f71a3a0e80","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":112,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"99bd690e-22dd-4edf-95ee-a04261c3c5fa","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":112,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"c1d9b284-f042-4076-be82-7315f24f4fd2","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":112,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"2c59fe6d-6fbd-4905-af7c-293d371ea36e","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":112,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"581df924-9796-42ad-b42a-6e9a1d67d074","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":112,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"04609e19-fb66-4a2e-b754-daebb3d6ecb4","block_type":"box","text":"Standby Commitment Agreements.","page_number":112,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"e1792e8d-be20-4a56-a38b-40707276e69e","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":112,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"6edce46b-a6a4-46d9-a5d8-2c2a2b5de214","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":112,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"b15f5fa5-c4de-4ac5-908c-ed792a561e68","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":112,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"88d521fb-dae6-4865-817b-5a2558dd924d","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":112,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"757fc479-9eb5-40a7-8749-1dcf82390ff2","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":112,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"a775cb11-d173-45ce-97cc-8b990f48b22d","block_type":"box","text":"advantageous to the Fund.","page_number":112,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"0c957a2b-9465-4d8e-8769-1790ed9e8fc8","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":112,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"96860fac-3b27-45c1-bfac-5230833a43ab","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":112,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"159d8761-6568-4f7f-8fdf-03c66e2b4530","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"276495fd-308c-44b3-8a5b-9691c8e1e3df","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":112,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"b72a508e-2ce4-455a-b2c4-d85dd4659393","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":112,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"5c9bd3ab-5f4f-42c2-a780-95d7d544eeaa","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":112,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"139bf924-663c-4b95-abe9-5ebf23fc71be","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":112,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"5e887774-bb67-4926-bf7e-de25e7c4a33b","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":112,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"461cf8cc-9aab-4983-a3d0-496cebedf956","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":112,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"17088d9d-20bd-4307-b6af-8128668737d5","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":112,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"a473e4f2-299b-4dc1-b939-8c78684a0bf6","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":112,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"45f6267e-95ca-44ec-9e3a-fac26340da1a","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":112,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"0d6816ba-86cc-44e3-bbe7-0fd82a178183","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":112,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"67143cdf-bfc1-4dbd-98d0-47cce7595bb3","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":112,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"6fab2b2b-c49d-4bff-9071-1ebe03fc294c","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":112,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"8812ec52-9b9e-430a-9c93-04dcd11b1020","block_type":"box","text":"Stripped Securities.","page_number":112,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"f88827ee-5fca-4c99-833b-5ad0e7c608c2","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":112,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"06a461f7-315c-4fe4-9c0a-215864573eb0","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":112,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"c5f10621-29ec-46ce-9054-de1f2a9fa7d8","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":112,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"651c4630-d2af-44d9-b728-9908a2c38260","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":112,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"95ed95c6-5957-4002-be96-8d0be2859a71","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":112,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"54522c19-42df-4b95-a85d-6a91c4776e7d","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":112,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"82c2cef2-4125-4d31-a6ea-a7887d9c8a6a","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":112,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"3d08e1c3-ba90-4d77-8e63-4cab4c359afe","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":112,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"dacbcb83-918d-4715-b213-428be7f77e23","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":112,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"edfdc8d1-153d-416e-8d57-e419fe5df887","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":112,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"cf5092ef-291a-4a05-9193-e8928e7382e2","block_type":"box","text":"Structured Notes.","page_number":112,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"428cfc65-7568-42cc-a0ca-cc8775396d62","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":112,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"09f6d772-822a-4950-80b5-7af4bf6bca03","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":112,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"c55fcd17-844b-4acc-b0b8-81c72b511bdd","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":112,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"340313d0-399f-472c-8421-8dac7b902bc3","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":112,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"ed2b7f82-24b9-4c83-8f0f-5ae411467f18","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":112,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"56e88329-7d57-4b38-8711-b31a50124379","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":112,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"3b2b091a-83d9-4b52-8ca1-923c201436e2","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":112,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"b0858c9a-c2fe-40b9-8389-3ecd95e4f831","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":112,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"50208885-1c75-4b98-a0a3-18c9e9da2a7a","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":112,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"5266a126-f875-4df9-8866-b7ba6df51eec","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":112,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"dcfee144-8135-499f-af75-f66348ac7fe2","block_type":"box","text":"II-75","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57e7252f-f5de-459c-a9fa-6a74ed858888","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29cda8aa-019f-476b-8590-3ce234f3823c","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":113,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"98c4973e-36c3-4ca0-92f7-d65d520be034","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":113,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c5542398-ccd3-4f06-963b-37673974ddab","block_type":"box","text":"the risk of loss.","page_number":113,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"0340b34e-6477-4c7f-8242-71e71314695e","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":113,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"5fd2fb47-3392-4e67-9581-d31886b72c5a","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":113,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"3f4bd42b-41ee-4a05-860d-7b4b08792263","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":113,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"272f8373-4f01-4cf7-a720-f2b758df02c5","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":113,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"f9db8a58-ebdf-4f32-a98d-3d608423e746","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":113,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"f815ee74-df86-4ef9-a1c2-efd495f88b37","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":113,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"369b92a2-4ac5-4868-be19-39a8eee1c203","block_type":"box","text":"Taxability Risk.","page_number":113,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"ca78e636-38f1-4659-92ce-d12ee8f22f89","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":113,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"69863990-38c2-4cbe-b5ae-2a01c1f76300","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":113,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"bb081c2f-a249-4855-a425-b2683699fa02","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":113,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"560883f8-f38e-4352-8d0c-b1c59ee26b1a","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":113,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"2756ee3b-64c1-4d29-8e7d-bdcd8301ea4d","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":113,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"636c47e5-101c-44ad-997c-08a0454d4a2a","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":113,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"ee7f8006-5bee-4c87-82f6-15fc55c717dd","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":113,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"f0f9a1e5-e403-415c-b6e6-c0db3edac1c4","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":113,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"d3924a37-e533-4ad3-acd5-92005575452a","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":113,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"65e98988-58d1-4696-8dce-bacf91cc14b6","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":113,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"e5bd7bd3-2f87-4fc3-878a-811305bb4bbe","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":113,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"96191f4a-9aec-47fd-854e-927811cbd9ae","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"3f90e996-2c8f-42be-b926-3eb989c4ef73","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":113,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"96584189-ffc4-420f-a915-80f1e8be819b","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":113,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"133bf899-3fd9-4de5-b709-75d5b8ca85d7","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":113,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"1079758b-61ef-4a68-bffc-7d2953bc3259","block_type":"box","text":"the value of an investment in the Fund.","page_number":113,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"e94762bf-74c0-434c-9294-04fb46075dfb","block_type":"box","text":"Temporary Defensive Measures.","page_number":113,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"2b1f5cb4-5204-49fc-bccc-343403223d2f","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":113,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"9c26859e-6cf8-4a05-9247-dd43553bbe80","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":113,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"90f73452-dceb-43d8-8b06-4171d82d08fc","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":113,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"d6a0e057-3257-43de-820a-caaaa7b1b3e1","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":113,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"f860eebc-9620-4ad6-ab05-61940f4aed31","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":113,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"7f33c4f4-a556-414b-b5d1-1b4f98bdd051","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":113,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"cab7862a-a11b-4e6e-b687-c8eb72d16eb3","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":113,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"45a9a2a5-db0b-45f5-93d9-7bcfd42cda09","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":113,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"124505ef-64f1-43f3-9fec-f4586ccaafd6","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":113,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"4babc3d5-bb27-40bd-975a-192af41f46aa","block_type":"box","text":"its investment objective.","page_number":113,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"c63382f8-09ac-4007-bfa6-c753adcb3c2e","block_type":"box","text":"U.S. Government Obligations.","page_number":113,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"ded122f1-2277-43d1-8cf7-43197e34ee13","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":113,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"564b2392-5143-498e-a167-5c283e3c3218","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":113,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"d4962d17-d8f6-42d4-81dd-c4b85e588cd8","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":113,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"c2dbe056-0a62-4be1-b603-4cba1ac9ba98","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":113,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"0c4bfc5d-25eb-4e88-89ea-4ca161c8cf8f","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":113,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"a473a5a6-6f64-436e-8963-e392657f373f","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":113,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"ae16c9d9-ef6c-4ed6-9583-e27cd848d264","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":113,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"bc2056df-7333-4c1f-9aea-be95fd344cc9","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":113,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"9c7fad14-13c1-434a-86b2-b2d109a57851","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":113,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"19a16260-8717-4bb3-a9d8-ff4115b0033c","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":113,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"010e2b2c-a80a-460c-bb05-e7def2e4193a","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":113,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"2f587563-0252-4cd1-a5c0-09e8fa5eccf5","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":113,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"abcf2da1-79e8-4809-a41f-ac655d289f8c","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":113,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"44420557-c831-48a8-8adb-25ebef8f8c80","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":113,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"d6e0a354-2b35-4aab-9e9b-baefc9cdede6","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":113,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"e018fcb5-84a3-4c4e-931b-ba494af1a851","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":113,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"ecefe578-4c9a-4d78-b5d1-2e3e55e3f47d","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":113,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"737e539a-1787-494c-946e-7c909349fb24","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":113,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"7cbc66fa-4e2a-4f7b-bcb3-e921319c648f","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":113,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"c5ff4f18-22f7-49dc-beb4-cf24fe880e9f","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":113,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"6640303c-363e-4288-9e65-049e8b3fcab9","block_type":"box","text":"II-76","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a64e92c5-c2ea-48b5-b0b0-6a2b9ec34da5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03f96fad-abfc-427c-8cca-211ef570f58c","block_type":"box","text":"U.S. Treasury Obligations.","page_number":114,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"3101da8f-ce18-4cfc-b05d-25c30ffa6828","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":114,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"f3d8a6bc-6b6d-48b3-8d6c-53cd59e37c92","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":114,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"2f1a5d63-b846-4d69-b130-332dc83bb72c","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":114,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"2810cc4b-9a82-4b82-b917-d271591c2e9f","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":114,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"d3b35db4-2af8-4282-823f-5f85175b267e","block_type":"box","text":"do so.","page_number":114,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"26d1807e-c045-4d11-bf46-d8e18f54eb93","block_type":"box","text":"U.S. Treasury Rolls","page_number":114,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"dc67ff15-e80e-4688-9976-678e7b947957","block_type":"box","text":".","page_number":114,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"801e12fa-371e-4d7b-a02f-7990f9642015","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":114,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"b1f3f621-06b9-489b-8930-1a03826c2257","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":114,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"6f629f7c-3bb2-4877-8dda-de58f598415e","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":114,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"60114ae8-d884-4aac-8202-36cbd45ae360","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":114,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"a4051eb6-ccec-4881-9721-b0bdaf8c8ced","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":114,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"42c79662-77fa-49b1-b6ab-c27f3593b39e","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":114,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"8bbdd234-8c6f-4d7f-b222-65b4a00c21f0","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":114,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"b0e4e184-4389-47f5-a021-16a6460e7692","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":114,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"47b9ebcd-488f-4155-9b31-b573fdf9d633","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":114,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"95e61a13-d87f-4700-8131-fbcc633465e1","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":114,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"47fea82d-3961-48d9-8ef2-057a073039c5","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":114,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"1f04d436-169a-40df-8cbd-46a9af9acb7a","block_type":"box","text":"Utility Industries.","page_number":114,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"c82a2612-c8c7-4a17-82b3-51db875caab7","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":114,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"aaa374dd-0409-4e1b-b94d-3c5d3f441e05","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":114,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"9e1b5cfe-9f9b-49b6-bfe9-35ab34f264ae","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":114,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c8585610-d80b-46ae-8617-982670fad725","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":114,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"50c06ed5-9c8b-4d70-95c6-2efdeaeac92b","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":114,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"a1f82fa0-576a-453b-bd18-8328c3dccc44","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"97219446-d8ac-4ce5-a23d-2eb796091e6e","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":114,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"5b2d00d7-10cb-40af-8a16-8d437aa2949c","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":114,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"92375716-55eb-47cf-9b9b-8a011d10fcdd","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":114,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"4024c288-d7cd-49c2-b6f5-789170adff6d","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":114,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"0a4dbacb-e3c4-44c3-8195-dff1db9b2a9e","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":114,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"a5af85a7-7a78-4d9e-9711-510eec86e6b9","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":114,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"ed2ef04a-018a-4081-be14-de90b5da9639","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":114,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"e454f057-fe71-4faf-bbf3-33012801604a","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":114,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"6e9f712d-0b6b-4631-8585-59e2c1612849","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":114,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"f24d607a-5eb7-4221-859a-6d5a289b8d50","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":114,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"bbe683da-6174-481f-91e3-af656c2c3f18","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":114,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"43b55f1b-8489-418e-985d-c5307821a852","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":114,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"13a1f0f6-f7c0-4ced-b9bd-2b68d3d98d2b","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":114,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"9a084719-7091-4384-8ac8-60486bf1e7ff","block_type":"box","text":"utility.","page_number":114,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"a194b598-48d3-4fff-b992-26a527fe0214","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":114,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"fbf1ba5f-4e9c-4a25-ac26-1e4118f5dbc4","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":114,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"e271549b-1375-4fc1-8a92-1d47b571fa9b","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":114,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"f490cff5-7909-4bba-bdaf-7cdab40f95fc","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":114,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"417a068c-cbd4-4261-92be-6550e731490d","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":114,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"03b22a28-b3fb-40e8-991e-c2147ca1fbc5","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":114,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"ed4bc188-5c1e-4df1-9cf6-5b289960b97b","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":114,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"8f379087-6f77-485a-a8db-7d8f5802f9e1","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":114,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"7ff998a2-defd-498e-8f21-8019f7d5e7c0","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":114,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"40c8e6ba-6598-497f-9980-bff11e7d0768","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":114,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"6825feea-d980-4ba2-b701-cf86b06d4464","block_type":"box","text":"continue in the future.","page_number":114,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"12cce280-3025-4108-aadf-98d3edec301a","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":114,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"cb0f8b1f-313f-4196-9cfa-b9969a567f89","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":114,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"09f6e141-bf09-42f3-ab00-7229fce47c43","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":114,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"96278608-f124-4781-8f29-aee71ab5a195","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":114,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"9ba3d31e-3f53-4edc-ae40-4f15da57c609","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":114,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"8d8c6fff-e54c-4b51-b7a1-51219bf601e9","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":114,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"5f16e4ef-44f5-4f09-8579-894ea984c65d","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":114,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"9878b3d7-c968-49f6-b1c4-f2426cdb1d42","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":114,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"0c9e2d89-26d9-45c8-ae88-1d0e49695ec7","block_type":"box","text":"II-77","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"357ea196-d66a-45f8-bf8b-5e0e71a8247d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"caf88f94-f849-4f7c-b214-752668e43ac3","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":115,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"26f00c21-8533-456e-b212-db16be38d4ae","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":115,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"75f5bf8a-9406-4c28-b16a-ec90d689d9bd","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":115,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"a97805be-cf96-4bd0-b642-6159127a39c2","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":115,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"c65398ef-91e3-4b47-b9ba-7a2216bcc331","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":115,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"9d7f1717-ae71-4f28-a341-a4287f328eb4","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":115,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"25404202-f9a6-4a07-b13f-52326277a73f","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":115,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"b5adab5c-b277-4869-9549-8f43865e850c","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":115,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"c9c872f4-7286-443f-a48d-eace328327e4","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":115,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"01d52a9b-5f38-4b96-8cdb-3673d9cf7b62","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":115,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"4d7d0623-08de-456e-9682-c8db42bae8cc","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":115,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"de3c9a7d-17db-4c49-bfdc-1316b19f1734","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":115,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"dda88bdb-61f3-4d30-9321-32d216c83141","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":115,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"52163977-2e1f-417e-bc3b-42e56b69a718","block_type":"box","text":"ways different from regulation in the United States.","page_number":115,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"ef4e3e38-12f8-4f8b-ae6d-5216cbeb362d","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":115,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"aec3b3f7-2662-44b6-b720-5408da3dcc13","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":115,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"38964023-66a3-4fa2-908b-a48c08be8b61","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":115,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"6f4eca76-4dc8-4747-acd0-c36792541383","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":115,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"0c80bdb9-c2c2-4854-9588-13d0119e947a","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":115,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"6d73e433-7971-4b08-97ef-7ae4cf01a8d9","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":115,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"90c06ec6-5566-474e-8514-f165c0bcc230","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":115,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"12763722-747f-4cd4-90fc-284ef03b1c85","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":115,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"5660336e-a0c1-416d-b74a-91aa46fcf89c","block_type":"box","text":"increase.","page_number":115,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"efb908eb-e0a7-4c3b-b5f2-2a3d64f30da4","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":115,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"71598fa6-2020-490b-9c58-490dee7d843a","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":115,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"7c30776d-4cfc-461c-b642-42c4ab71664e","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":115,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"027e8e20-a93f-4f2f-81e3-223264ead78d","block_type":"box","text":"Electric.","page_number":115,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"99ea0c11-929a-4eeb-b60d-6b49ffabac20","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":115,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"634134ea-0b1f-4416-880c-48e1e50b2960","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":115,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"db9cfda4-5dc9-4264-bf14-88eb6ad47092","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":115,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"441387e0-38b1-4fa0-bb18-bfe9b4fadf72","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":115,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"83441dcc-fccd-4fb2-94f6-e8014961f794","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":115,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"a18ed797-839a-425b-a1b8-533e771bf282","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":115,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"ff852d72-c164-4fc5-9ed0-4106ac19518b","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":115,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"ad00771a-2db1-4b7e-bc47-6e5030871b25","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":115,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"393bf521-99c6-4a40-b796-906569312f87","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":115,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"9b786f3c-6e57-41be-858b-36c7863bb23a","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":115,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"6ff21d4f-5bb8-4116-9e8d-acc436bf9c1c","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"970770c0-8747-45b2-bc0a-d3eee89b16d5","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":115,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"d77c11f1-5728-425c-84ee-c2896cdbceda","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":115,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"09732d5f-3eb1-4e0c-8f7e-62de72f07468","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":115,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"aa0fdc76-d754-40ff-85b3-d060ec265f3d","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":115,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"d7b12bbd-e5fb-45e3-bd11-744ea755b905","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"a38c85be-7ff1-45c9-a642-5feac47a723b","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":115,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"fced5506-2fec-41ce-9384-bcac56ebe67c","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":115,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"4b92d869-be9d-429f-8aed-21e900dc60a8","block_type":"box","text":"and for decommissioning such plants.","page_number":115,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"69c8ee5e-4a16-404a-9379-e8d465d059d5","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":115,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"fb35ad5c-1d24-47bc-9d00-2b5bcbe8678f","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":115,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"ba64145c-8aa3-436e-81f9-ba483b587554","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":115,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"31222aa4-9123-4039-ac7c-8bdb5d37e2f7","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":115,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"e58d29da-a8ae-47ef-9241-0ca2c6920b7c","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":115,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"19d14c00-4ec4-4554-bd19-00c5b3d15a57","block_type":"box","text":"greater predictability of cash flow.","page_number":115,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"b196da1f-dfa6-4a8b-8ece-664dff474458","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":115,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"ca283654-0200-438b-b3c7-9526fbf0799b","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":115,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"4efc43f2-a5a9-4c0f-a82f-6adacbf3e66f","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":115,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"54b74d8e-de9e-4f05-9211-aef11a9b5e6c","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":115,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"0a3c8c0a-b500-4ada-b628-f89ccd51dd35","block_type":"box","text":"II-78","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bde5815-48ce-47c4-ae46-321d9ca225e4","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5a6f1f4-ddd5-4496-b7b3-cfaad57ae720","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":116,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"74a9284a-8844-4bdf-9f62-f63640f95c8f","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":116,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"28127ee8-ab1f-422b-b6db-34c77cfed5d6","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":116,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"ee6eb52c-698f-41bc-bd7b-a07379d8f8dd","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":116,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"8ad0d2db-62c2-4c2d-b8ad-4134bad581af","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":116,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"a242e164-6467-4551-8479-1f32b1678d15","block_type":"box","text":"Telecommunications.","page_number":116,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"a8b8afd6-bf38-4a44-b171-638be22f665e","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":116,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"3cbf4260-c224-4b37-ac6f-9509e67b449e","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":116,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"c2857531-946b-4cfe-bb7f-fc3b296ff86e","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":116,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b2b47ce9-f957-47e9-8fcc-c6ac9bba6bf4","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":116,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"b121bef1-7adf-460f-8903-633631027d90","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":116,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"6957da0a-5c95-4b65-b34d-ac370384fae6","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":116,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"1f2dfa3e-9dde-4645-841b-9d726ee6d935","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":116,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"c57d7042-8ea5-4be3-ad81-533d906700e3","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":116,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"e3d77e4a-680c-4a81-ba4f-95877eacef34","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":116,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"fc4fa649-46dd-42c3-be52-87a78ea8fb27","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":116,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"993a634e-13aa-4904-9743-419bf43fb08d","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":116,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"8a205cf1-4d47-4f48-9fa9-9fa1a086b9f4","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"e852248f-92ec-476a-893c-9cf22753b006","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":116,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"cbf94326-8855-4350-8aa1-d40e69bfd15c","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":116,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"9dd5cb3b-1b58-48f8-af34-09b0ac9ae5da","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":116,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"0888619c-3146-4d9c-b6b4-5107babad102","block_type":"box","text":"residential, corporate and governmental customers.","page_number":116,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"dac8ab3f-7a83-4711-bf89-b8170e3ebe4b","block_type":"box","text":"Gas.","page_number":116,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"d543fbda-c5d7-42aa-886f-c093f9a947ea","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":116,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"60df72b9-e47f-49ff-88ed-e5859b9c4358","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":116,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"f4589580-2b52-4af6-beb2-e7abe5695099","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":116,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"320cf464-9e7b-412b-b96d-20ea39249f2c","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"9ef46100-97eb-42bc-996b-412cc25e214e","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":116,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"e0055db0-91de-4e83-918f-471ef83d412a","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":116,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"1ffab0c3-827a-4c50-ada4-fb4a0f13237d","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":116,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"58e6de33-cde8-4009-b414-ad16cad5ec33","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":116,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"b4e5291f-457c-457a-b128-9c1bdb67166e","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":116,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"1a04f8d8-3934-4aa4-b36f-cc868eb6ad88","block_type":"box","text":"Water.","page_number":116,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"d1fc6735-65c8-484c-8a38-ca9313bfe90f","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":116,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"ca870b4f-e748-421c-8d02-e14fbd4bcce4","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":116,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"275e9b76-c3e3-4454-8123-47368d73a042","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":116,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"b1e1335b-4eae-4126-a202-e012dfb582db","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":116,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"63b57620-ec8d-4020-a51d-66827c14a165","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":116,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"5078730d-dccb-4a18-8dc4-80b7c232035f","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":116,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"e6c1768f-526c-42b1-b4a1-5951e61426a4","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":116,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"22d1f813-c8c2-4eab-b58b-abf042bd3ef7","block_type":"box","text":"Utility Industries Generally.","page_number":116,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"32990147-293d-4634-87cb-f34070a0a646","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":116,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"78035fd9-d413-4a6b-824d-6b8972fbf175","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":116,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"dad37c05-25c9-492b-adf5-fabc84c5f8aa","block_type":"box","text":"not develop in the future.","page_number":116,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"4e847467-e16f-4b45-b78f-80385bd2bfb6","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":116,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"9c8be6f2-7239-40bb-b4ba-c2fe2aa64da3","block_type":"box","text":"A Fund may purchase or sell","page_number":116,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"9ec10937-6f14-47b5-91b8-872e27dc6ed9","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":116,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"80743fd8-cdad-4f60-9d0c-2c2fec592461","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":116,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"9aefae41-1fac-4555-a75e-427dbd2a124b","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":116,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"defc65c7-e041-41d2-a57d-de286ae6c461","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":116,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"54869ad6-2553-48a8-8e83-cc19c826980a","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":116,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"a8d399b0-1f62-41cc-849e-ca32fa2955a9","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":116,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"c9a8bf0f-b829-4ea1-b6c3-de431a0643d2","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":116,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"642767b8-cdf8-46b0-ae23-2a712790ac8e","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":116,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"5add856f-b8e9-4f86-b204-a6282e68db55","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":116,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"1f838b02-01e4-4b73-83da-542ad4e6459a","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":116,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"94b0f5e6-8063-4a8e-887e-ce9caa16c679","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":116,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"070c8e14-3363-4a06-9d98-cefc252c62a2","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":116,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"745e1d90-5b69-4388-8ddf-bcfe2b4726d3","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":116,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"bc2e9146-0783-458e-becd-f80d76ead1df","block_type":"box","text":"II-79","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ddcac773-be19-44a5-86f2-1af414a0ebab","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a56d9765-379c-41d7-bc97-73d153ca1a1e","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":117,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"9be7ee67-8816-44c9-a0a0-3a9f06310e7e","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":117,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"60b9bde8-55d7-4847-9df2-1d31743cf091","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":117,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"f0ff3fad-c655-4640-90b7-1886c63b07c4","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":117,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"961b5bbc-0f90-4dfa-a7b7-32ade7fee845","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":117,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"be186770-a5b2-4bb5-9543-bed1f682ef16","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":117,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"890b0148-48f0-45a2-a2ae-0d52e99a7c20","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":117,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"816cd492-f4c0-45d1-aac9-085991863265","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":117,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"2c1244b8-596b-42ec-beef-fb64004a0110","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":117,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"a5c77f3f-571a-43a8-8d6c-8ddc4d1b63d1","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":117,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"2720e0f2-bfa5-4f80-8bc0-9723603c5506","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":117,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"2e489d62-3522-4c5b-bfcf-b0c156da5477","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":117,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"163b6f77-76b4-4638-b966-0a8077f9e581","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":117,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"beda42d1-8b54-411a-adfa-849a56f6133d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":117,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"170e2211-3a91-44fb-a7d5-3bd00e2bb97f","block_type":"box","text":"securities (","page_number":117,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"a7132584-190f-4e6c-902e-fdb83a677cf0","block_type":"box","text":"e.g.","page_number":117,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"28b46595-b6c5-4ae0-a27e-debf47dff81c","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":117,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"722a5113-edef-4dc4-8afe-fc58fd0f5be7","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":117,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"c25c7266-1244-4e71-ab7d-40f90b85fc44","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"c68cf851-6fce-4b48-a2f9-e2a72830a5d0","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":117,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"51bd4821-85d0-48a7-89ee-7368bed05250","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":117,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"f017ea6b-3df1-4959-b44f-b0d8e70cfe01","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":117,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"c0ec70f3-e76f-4f9a-a26e-b33546294d6c","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"2c2e3d5b-e43b-47c4-ba95-0c0e0f4e5444","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":117,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"a65f0e36-a515-4f6a-a30d-3c51f4cbc128","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":117,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"bc422399-6f62-4c74-9120-bf4cfe80f855","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":117,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"716b58b0-c37c-441c-87d9-38d15e36faf7","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":117,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"e8af4948-7dd1-489d-a269-31c9e637de16","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"4efc631a-d4a9-466e-9db2-e39171042cff","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":117,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"6f0b024a-9b54-45fb-becb-beae93ef8f89","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":117,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"58a08d75-bcce-496d-841e-032882ebe748","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":117,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"b9e56892-245c-4681-8472-d4178522d39c","block_type":"box","text":"Yields and Ratings.","page_number":117,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"28f878c0-1c84-41db-9ec7-edf71565530b","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":117,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"906266ac-6e11-4bbb-b6b5-b86960749dd2","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":117,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"dbab5817-d9ea-4a43-b4a1-7a00cb8023a8","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":117,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"ef61edca-669c-4df0-8ac3-111dee18a44d","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":117,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"bad1d9e8-9055-4490-8a57-320ebd10560e","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":117,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"54c8c436-8e48-4560-8224-2e38b70cd2dd","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":117,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"dfb6b238-95f7-49b5-9c44-4ad01eb42b96","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":117,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"913bc5cd-3b82-4266-9958-2fb0c370a2d1","block_type":"box","text":"continue to hold the security.","page_number":117,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"8e94ba69-213c-4efb-bb84-e5c9083ff183","block_type":"box","text":"Zero Coupon Securities.","page_number":117,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"bf74d000-6766-423f-b36e-de0ef35d5f46","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":117,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"567db51d-8c8f-4d90-b550-13612ebdb361","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":117,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"f1fac6d6-38be-412e-86c9-441cfd055fc1","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":117,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"42597b13-3bb1-458a-b6ab-a083c2c27d19","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":117,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"c8e3084f-8a05-48e8-9f84-ab13475b76b5","block_type":"box","text":"security.","page_number":117,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"06f17a99-6c27-4b17-a747-9710a0290baa","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":117,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"81f99d07-8e79-4ac0-a5a8-e9ff8dee5adf","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":117,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"05e3b61c-536f-41fb-a00b-32317ffb75ab","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":117,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"087c19b5-509d-41fc-b656-f75fa5ee2e60","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":117,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"317cfedf-6cac-416b-aff0-aaf4b22d4ff3","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":117,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"ec929719-edb0-4070-b43a-4be9d0092245","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":117,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"20b4a5d6-b4ba-47da-b50d-fb785128a07c","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":117,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"49f0418e-a812-4aaf-ab76-5faf47c503ef","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":117,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"257232d0-1abe-4610-a86d-f2f4f6ee6ac8","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":117,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"4c7b983a-7e77-4113-8159-5780a9cb513f","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":117,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"7b2a3858-b113-46c9-8487-9e445154c696","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":117,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"b56973f0-4500-4a8a-abbe-f69c58486cc1","block_type":"box","text":"II-80","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78d61b24-5581-467a-8cb6-f4bf474fb933","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cadb647d-1124-4704-b6e4-3004f9623856","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":118,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"4e87bd2d-e81f-4edf-b17b-9dd0c06965c4","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":118,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"f9b82385-af06-4b36-b44f-cefa1060369f","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":118,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"3384837b-a334-466b-9117-e66939c86715","block_type":"box","text":"intervals.","page_number":118,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"bac2af45-cb97-4758-81c7-f019b671a4f4","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":118,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"0bba4bcc-70e5-47df-92b1-68784ff3980f","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":118,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"90130f15-9dfd-4415-95f7-789564062524","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":118,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"1c00755b-f9b1-4968-a38d-9ebd63d278c8","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":118,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"2f3b374e-92f7-430d-9a27-ec0f6bd5ece4","block_type":"box","text":"exposure to zero coupon securities.","page_number":118,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"ae3f494e-aa9c-41f3-9178-ebab869992fb","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":118,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"3f0ae56b-e6c2-4f5e-a8a6-91c04dc5537c","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":118,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"5c229142-3c0a-4f8d-ade1-95216ce389d2","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":118,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"4a5d1d95-9fc1-40a2-b6c6-abb4ae9782f2","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":118,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"a47f0d00-f128-4f5b-992d-cff5471d8afb","block_type":"box","text":"Suitability. (All Funds)","page_number":118,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"3c3494dd-7850-49c6-98fa-9eebd2bf58a1","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":118,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"8c63277d-80d6-4844-8de3-6f326f5ee8e7","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":118,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"8529dfa8-19a5-4152-a7f9-43d7f24a2a98","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":118,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"65251ec3-7a8f-4fd4-9cf9-5b679dda10a6","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":118,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"89102271-da8f-4939-bdef-d6e8a0c69e21","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":118,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"ccb7ba84-3ead-4ebf-a374-24109f28a74e","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":118,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"524bc6bb-a41a-4092-8f70-17a1e1d20198","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":118,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"4fcde723-a9dc-46a6-8d91-12538f384f36","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":118,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"206c8654-af9a-4890-a4fb-c8cfe9bc7d5d","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":118,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"b32adeab-37f1-4763-bcf5-1d0550347891","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":118,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"4ff2bc74-f4c3-4e35-8ac0-372a01de16a9","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":118,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"6e991d3c-8684-4717-bbb3-9100037a5f6d","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":118,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"6ee012cd-c9e5-45b7-8f1f-1412938e89ce","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":118,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"36205e7e-0fdd-46e0-be31-c4ce895f44ad","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":118,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"8955f844-fa28-4129-bb2f-ec3739351613","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":118,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"6f49a97c-363f-4e5c-9f3a-e4f9aa2dece9","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":118,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"7c8b86bf-853e-4ada-a6bc-fa9e4370b65e","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":118,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"11d98727-3572-4498-b9d1-f565af29156e","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":118,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"258561a0-bac3-4c81-a3e4-98838e2e84df","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":118,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"1cdbcaaa-14ca-407c-8613-715f85ea240a","block_type":"box","text":"(","page_number":118,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"429604e8-a723-4cff-a528-34dc60a00c34","block_type":"box","text":"i.e.","page_number":118,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"cdfcadaf-0d2f-4c60-b145-2028bc256934","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":118,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"609d2156-bbd4-457d-b297-bc57f1022237","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":118,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"ac0764b0-78b5-442d-a577-4be6e3edbb8e","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":118,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"57e46fbe-33be-4b9f-919c-0938d15e8a9d","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":118,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"934a6ec1-7a94-4468-b38d-4be8f938d382","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":118,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"7c7d6be2-9012-4242-8eb2-ec1f08f2cb3e","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":118,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"525949b4-e4a9-40dd-86a2-c4ec5c7844d2","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":118,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"b38f10ce-5e00-4f00-b23e-a0ff6ffd41ee","block_type":"box","text":"regarded as the sole issuer.","page_number":118,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"a2eefa4e-955a-4697-8090-68c13872323f","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":118,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"e612a312-706e-4eb0-b391-4358901bf9e2","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":118,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"db2651cc-813c-44ba-8608-49b753504e28","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":118,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"d7e6c439-5d7f-4311-bd00-05d8a249684b","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":118,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"a7e79f1e-2c86-4b69-a1ea-97d6edfd192c","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":118,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"e8b2f8b0-accb-49da-8fe4-e9e7d8f7d4da","block_type":"box","text":"75% of its total assets.","page_number":118,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"ae17055f-533d-4029-8ab1-b2d7c449102b","block_type":"box","text":"II-81","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f83a05c-c3ec-451f-a500-46eef4544201","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6aaf65b-2f28-4aa1-a152-def188d7c872","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":119,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"6bfaef53-6304-4cc5-af46-13d5df8ca9ca","block_type":"box","text":"Directors and Officers","page_number":119,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"36a9f6a0-2d62-43a2-be2b-9e699cbdd4b8","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":119,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"b552234a-3250-4945-8eaf-c70df5c8d716","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":119,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"01599947-f519-46ee-98c0-64d00b4d57ba","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":119,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"221043a9-70d0-464b-aeff-8d5103b5d917","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":119,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"2e0b0b7e-596a-479b-9906-958854c18cee","block_type":"box","text":"Management Arrangements","page_number":119,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"234d4599-5528-4971-8c6b-f29231b20d98","block_type":"box","text":"Management Services.","page_number":119,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"b16ddccc-0e53-4a08-8712-1a5bcda646e2","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":119,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"031fee28-1909-4e1d-a6a5-a343221384ff","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":119,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"0a75361b-decb-4c87-bb00-e1bf4233060f","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":119,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"18ac0843-df82-49e1-95c7-93a9c8d9ee8e","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. The Manager","page_number":119,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"42b9158d-96b2-4b8a-8f4c-8c8474662018","block_type":"box","text":"performs certain of the other administrative services and provides all the office space, facilities, equipment and","page_number":119,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"9f446469-2651-4e95-b2f0-3e79e383b8cb","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":119,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"83d34952-1318-447f-acfd-79470bd2c4a7","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 Feeder","page_number":119,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"b0e20ebd-cc2a-4744-a60b-15004c6d0493","block_type":"box","text":"Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio securities and does not","page_number":119,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"4de13dff-83f1-448a-af33-7508ee10beb0","block_type":"box","text":"require management services. For such Feeder Funds, portfolio management occurs at the Master Portfolio level.","page_number":119,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"1e7fd168-647e-4afd-a59b-af2fbeada86a","block_type":"box","text":"Management Fee.","page_number":119,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"b3ab6d55-6f6a-4ed6-ba92-24be95b3c61f","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":119,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"b8dfab02-d02a-4072-8a18-d7e41331072e","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":119,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"e0ea3d1b-625f-4259-b081-85823292359e","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":119,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"3d9d92e1-453c-4228-87d3-316d4fc48412","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":119,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"c1743f13-b4ba-42fe-972c-60dd8b37a8b6","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":119,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"063306f6-9f58-41da-831b-6ad51a7658d5","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":119,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"5585621a-a4b5-443d-838f-75956565ad5a","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":119,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"a6619ad4-236d-4a5d-942b-ea2708e7fa8c","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":119,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"3675aafd-37d4-4235-9ac9-121c2fc44762","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":119,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"4fa87f54-80a5-4537-9818-f1c271eda3d0","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":119,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"99108f70-7a7a-4079-bed9-bca5faa508c3","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder reports, prospectuses and statements of additional","page_number":119,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"8b358778-a0e7-4593-9cf9-a116c0db4357","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":119,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"02252836-9e81-4117-9419-9325426edcb8","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":119,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"60b00127-ceee-412b-9f18-fb9a9f9a9c0e","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":119,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"9946ca5b-eb03-46fb-b74e-1b97a0be75d8","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":119,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"6005f287-02fe-44c7-b914-15b331729c3c","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":119,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"69356849-6e2c-4479-8e82-a9a975254cc6","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund","page_number":119,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"84b7ae63-5acf-4aeb-a65d-3a7ee842c6ad","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":119,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"e13d612b-e01d-4797-861a-335fc7971094","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":119,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"d76a00be-277c-43b5-9890-383cb066f811","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays certain promotional expenses of the Funds","page_number":119,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"5c1aaf11-e13a-4870-8c5a-6ee59d44a674","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Certain expenses are financed by each Fund pursuant","page_number":119,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"a986e2f6-d1d7-4b39-acd6-1dce61839423","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":119,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"8f7060e8-cf2b-487e-b20c-8440590fe673","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":119,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"b6df919b-eda8-4cce-bb8f-49311744788a","block_type":"box","text":"Sub-Advisory Fee.","page_number":119,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"13e3a4e1-7c5a-46f1-9179-0306204bf7e8","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory agreements (the","page_number":119,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"e317f449-d1e2-4325-86ec-869e48f67282","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":119,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"07b5d65d-a8cc-4019-89e6-8d60fd794ff1","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":119,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"0cd7458e-8883-4e32-87a4-1e4e6fb2c014","block_type":"box","text":"Organization of the Manager.","page_number":119,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"b851d649-0705-4f82-8d1a-34faee568f78","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":119,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"acbcbbaf-ed52-45ac-81f7-ae4eca345544","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":119,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"87485d96-68cc-4a55-a53a-098a05bc06ce","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":119,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"d5fcfa7b-46af-464e-95e3-1c4964989205","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":119,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"85dbc067-e52e-4306-a928-809cb328a3cd","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":119,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"ee1ce802-2455-4fd2-9dd1-7a95d27ec3c4","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":119,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"0028f2f8-b3a1-4282-be23-214f769fe52b","block_type":"box","text":"Duration and Termination.","page_number":119,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"b4dae246-553f-489c-9a32-3138bd7d8786","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":119,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"9f24eb99-e572-4200-9267-cdfe3b8440a5","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":119,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"26c77f7f-ebd8-4d12-b1ae-9ea4f6f2ea43","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":119,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"3d64e93b-1a8b-4618-9268-2dbe5335f3bd","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":119,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"49723696-eccc-4bb9-937c-b02a9df79088","block_type":"box","text":"II-82","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1fc25f4-f9a3-444b-adaf-83435e5db032","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15de8dcf-9995-46f7-9914-cfb79f2de190","block_type":"box","text":"in the Investment Company Act) of any such party. 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Each Administrator is also","page_number":120,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"441ad1ae-0c05-4353-bd83-a9009aebc66e","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":120,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"f91b52e2-0b5a-4b52-a3b8-03f31a09b13c","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":120,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"ae102db6-95b3-4243-8c5a-c067602a232a","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":120,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"ff8d292d-d3ce-496a-a62c-0b97763e8818","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":120,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"68eb54eb-2b55-4de7-9c27-c6024f3b43b6","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":120,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"0a5dd287-8d79-4869-ad0f-e87ecf0506d0","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":120,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"923ee9fc-064d-4765-a2e6-982ccda9e9d6","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not parties to such contract or","page_number":120,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"10a08f0d-1bcb-44f6-88a8-58046678dba3","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such party. Such contract is not assignable","page_number":120,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"66fd9fd1-9c12-47a7-91db-f47d99917ce0","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":120,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"c4febb1e-445d-4f46-b991-7b3909cbf563","block_type":"box","text":"shareholders of the Fund.","page_number":120,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"e2b504e9-1ae8-4d06-9f76-df7f15ff7f28","block_type":"box","text":"Transfer Agency Services.","page_number":120,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"9b33c6ad-c974-4a89-a6eb-fcb46df6ad5b","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":120,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"d1245a1e-ff8f-4bc3-a978-b7f514b85d04","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":120,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"7817a4d4-57d6-4997-a16b-de956f6f7333","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":120,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"47ce6fe1-0c02-4fde-8b1a-ed5ae1321a3a","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":120,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"7d46d2ec-e9e5-442f-848a-562d1a80edf2","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":120,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"cb7cb4a8-e873-44c1-8f1d-63c417c4c13f","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":120,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"3491b0ca-7506-4323-a960-1b82c931ebfa","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":120,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"1ff6ce31-129a-4168-83bd-4c7d60f4b210","block_type":"box","text":"for certain accounts that participate in certain fee-based programs sponsored by the Manager or its affiliates. For","page_number":120,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"50d29da3-e844-49f3-a5f3-597d4e1592b3","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":120,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"104afee4-817f-418c-9dec-a57b6264df6f","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":120,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"5617ec15-161d-4853-a9a7-a3978cf1dc9d","block_type":"box","text":"class on a recordkeeping system.","page_number":120,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"1b26660b-a7d8-4f0d-a9b7-dff76513cdff","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":120,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"4530b41e-bcd9-43e1-9a8b-9a23d4c8d099","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":120,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"f912a3e1-3671-4aeb-a649-30657b3a7ec5","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":120,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"f5d95a53-fb9b-491e-afac-e70fefb8851d","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":120,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"eff45e5b-fee0-44b6-a234-993f05183bdd","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":120,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"4ca745c3-3e75-45a5-88c6-7634407b47d0","block_type":"box","text":"Custodian Services.","page_number":120,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"83b57653-13d6-4990-a527-1a4521b66f5b","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":120,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"a3776eb2-d503-45d5-9acb-1b4d5c61099e","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":120,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"580ba688-f6c0-4587-b412-524772f19682","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":120,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"652c57a2-1767-4f4b-bfeb-0a1d2b36a1a0","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":120,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"295b03f2-555c-4093-b892-195a47107207","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":120,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"60f32c43-ca0b-4391-b5ca-719772ec9af4","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":120,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"f0157c87-7a25-4251-beba-db2e29dff83f","block_type":"box","text":"certain assets.","page_number":120,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"884f825b-04bf-4035-810c-4ca430040240","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":120,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"35f034f7-3634-470e-a19a-01e42412e678","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on a monthly","page_number":120,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"df2b530b-8285-41bc-898a-4e87b8a503c5","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":120,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"4b5762fb-cd8d-4bda-a503-65b1e05886b1","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":120,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"702d6e9d-6873-478a-8efe-f9c2542d99af","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":120,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"80b32f75-1180-48a8-a9a5-97ccc51d5987","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":120,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"76317bdb-e2c3-4fef-8c53-223720049e95","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":120,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"12e8143a-6ba4-4840-966a-cffb0481b15e","block_type":"box","text":"Fund.","page_number":120,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"d1a6a7a5-07a9-4623-82c8-e202a072c8b9","block_type":"box","text":"II-83","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"52cdb8bf-0eed-4063-8feb-20a4ffbe2602","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a3ed142-0e81-43b6-bc6f-4ce795762c74","block_type":"box","text":"Accounting Services.","page_number":121,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"fcc515c9-fa4b-4c81-b4db-b4abf3b3f364","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":121,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"710d9a6c-d854-4e4a-8501-feb144dd4673","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":121,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"afbba339-01b3-4586-8002-7575e0498617","block_type":"box","text":"Master LLCs.","page_number":121,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"87c8425b-7e7e-4f2c-9935-6bffde33c0a0","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":121,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"d705c6dd-d29e-4b20-8fdb-12cc888e8d4c","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":121,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"f5e78f76-3d45-4be6-8544-ef7a5388939c","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":121,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"faf9d06d-3b30-47b5-843c-8d5f7a2c1150","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":121,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"7b508dca-9cd6-4f86-87c9-6cb37f8b8a44","block_type":"box","text":"Distribution Expenses.","page_number":121,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"4432d53a-2ba4-4377-8e22-db46ff893aa5","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":121,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"9fbf6345-563b-44a3-bd38-d90d37ee4011","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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BlackRock may, in certain cases, elect to implement internal policies and","page_number":127,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"2e9856a9-fd9c-45f4-afef-73e93b2365a0","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":127,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"2debc80e-ee4b-4a05-8d8a-05b2232b4881","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":127,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"22b1cba7-f825-416e-a40c-30d38994daeb","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":127,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"52d9e204-9b9c-437a-b502-57df4128704c","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a short position by a Fund may impair the","page_number":127,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"aaed6b9c-1dd3-4275-8ad2-956533a8839d","block_type":"box","text":"price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":127,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"58cf849e-ef16-4aa4-9971-d6b81928a29d","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same","page_number":127,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"8778597a-874b-4418-a5ff-c0d7750d41eb","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":127,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"61b1ae1a-b8d6-4b7f-bfa1-97e5e8e87751","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":127,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"5b040fb2-728b-41a8-ad59-2e0cce3a4d4e","block_type":"box","text":"extend credit to different parts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":127,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"eaa8514b-32b8-40d6-87dc-e7520509626f","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":127,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"3aa7e094-2cf3-40c7-928c-286468004803","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":127,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"17801414-4137-4a9d-8221-7a11dd8b2aa9","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":127,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"ed728c5a-d263-42fd-84ac-4cb7429a9cc8","block_type":"box","text":"Funds) hold positions in multiple parts of the capital structure of an issuer, BlackRock may not pursue certain","page_number":127,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"dba3f987-78ec-4178-a3cb-475eaba7030a","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":127,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"4cd17b39-d5c6-462e-bb7e-e4a3a6640da5","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":127,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"50d49cdb-4b96-4c77-91e1-b64f1bed5703","block_type":"box","text":"particular situations. 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BlackRock may also determine to rely on the actions of similarly","page_number":127,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"df7651a0-dece-4478-bab1-10eab68f1d2b","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":127,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"ab06cd86-9c0a-4357-997d-1002210cbf9a","block_type":"box","text":"Funds.","page_number":127,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"325e4535-e6a6-489a-8e09-507a421b52a6","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":127,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"9c41181a-c00f-4920-a6cc-19a32b8ef21b","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":127,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"38ba30c7-be2d-408a-96ad-b2148ed2cbb2","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":127,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c9e056c8-ce19-4106-851d-07556a85f0b3","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":127,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"03ab00c1-4797-4a04-83ad-1de1e4872379","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":127,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"ff589418-576a-4e6a-a727-62c140eee34d","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":127,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"be8e055c-d700-4b93-b127-70d3d9d939c9","block_type":"box","text":"for registered representatives, other professionals and individual investors. 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BlackRock may (but is not required to) effect purchases and sales between","page_number":127,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"ec8f4784-d651-40f0-a063-31310e23d2e4","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":127,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"f992af75-3bc5-41c9-909b-431ea629482d","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":127,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e4686377-ef12-4c25-8e0c-b97714eb7959","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":127,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"1eb98759-637a-4494-be38-7f5ddf405d77","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":127,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"21b7e8f7-d9fa-4fa1-9a7b-e5068e9806c1","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":127,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"1f6e69c8-0704-42ac-afee-c77e76ce4647","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":127,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"eb650684-4ed6-4447-888d-df01ab4225ef","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":127,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"646a815b-1990-44c4-8bcd-f39d8a2fa538","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":127,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"cc4b4f74-74b5-4604-9823-4773b5821ba6","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":127,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"f4a81950-6df0-44d9-b3bc-840a324bad4a","block_type":"box","text":"case.","page_number":127,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"4a7b23af-cc42-40c5-aa4e-741849d61862","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":127,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"62ad4a26-be06-4afe-ac4b-fd05ad5246c3","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":127,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"7bd8757a-f071-4fd1-8494-ecc20f132f95","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":127,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"e4b6ca57-3e0f-45fe-9227-f0953ed5b003","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":127,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"50218c01-b50d-4081-bddc-ed64948c456b","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":127,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"6ba833b1-1af6-4e5c-94c9-e56d3a2a5e0b","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":127,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"98e54775-23c1-4004-b6cb-5cfdcc368550","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":127,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"3f000eae-e790-4ffd-a409-11475dc46018","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":127,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"d1c943a2-8276-4827-b378-a5f0090325b6","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":127,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"9912b375-e497-4607-97d5-33e7ef27e82e","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":127,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"1f4d5bfd-289b-4969-b7a9-52ef40082bb3","block_type":"box","text":"II-90","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"456b701b-9b4f-4751-abb9-3f75f42ee128","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6858eda8-95c1-4599-9328-5eafe34216c4","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":128,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"f479135f-f2b2-4484-bac5-e8cbcef292ad","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":128,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"6c6a21cb-04d3-4d49-98ab-a8ba9a9f8bf6","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":128,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"3aa13180-7781-47a0-b99c-3c74e6ceaa9a","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":128,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"a9f27d05-c721-4ce6-8bf8-6deab401f58d","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":128,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"9c1ee06f-1026-47fc-94c1-f552d0060f75","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":128,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"f26af467-0e1b-4d43-b9ce-5760b32bb52b","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":128,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"6dc387be-4589-4169-b574-8061355a3785","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":128,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"a6600186-7dbb-4e17-a5e0-0d6fe750fefc","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":128,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"9d7a1695-dc04-4a3e-9610-58ce000c27eb","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":128,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"42772f2f-ffeb-452c-b89d-113cdf64c692","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":128,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"6bafb6de-76fc-44be-b279-63a148e8f445","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":128,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"9438a4b3-1d5b-4803-8830-8104909d2e4e","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":128,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"830e6c39-9802-44d6-aa1b-fedcdc687d0d","block_type":"box","text":"managing a Fund.","page_number":128,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"41c9c080-20bf-434f-985d-d22c83a62189","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":128,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"f34d98b4-d0f6-49ab-b34c-17d0eb2731cc","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":128,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"ea4c51d1-0d57-489f-96f5-00f3b07d91d8","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":128,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"85e65750-4200-4ef4-b405-2d467fc83f95","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":128,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"b8ba0996-7695-42d7-9937-c17a6daddb5a","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":128,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"d906c672-9b1e-482f-8093-d355f313de9f","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":128,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"8cd17708-3b3a-442f-a8fb-bb824f303b8a","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":128,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"2bb5e64c-a917-4c0f-84ee-71f787a4b562","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":128,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"9ea62dfd-2204-4528-ad5c-8e0bfd7e8a76","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":128,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"4edf5ec1-1793-409c-af23-337de8def74a","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":128,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"64da6205-3db1-4a8b-8eaf-3a7a4ba1f841","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":128,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"f7024700-3d93-454a-8cc7-948a78e7ad33","block_type":"box","text":"as the counterparty, principal or issuer. 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BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":128,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"d2250f01-a57f-4a30-9887-96f8497efad6","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":128,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"fc6911e2-9ea1-4976-9ec2-3297cea16976","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":128,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"554447f9-0daa-46f8-8de0-3b6d78d263ad","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":128,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"2f22e972-4dcd-471f-ac81-7b22509dbba6","block_type":"box","text":"under management for BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"532883fb-79aa-4017-91b4-21c0a59323f9","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":128,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"04fce125-21aa-46aa-b667-2c24d39cf0ac","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":128,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"9423e642-5cf9-44a4-b550-257058666ff1","block_type":"box","text":"clients have interests adverse to those of the Fund. 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To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":128,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"d29238cc-83da-4bab-99cc-fe786b5818df","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":128,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"d2eb712a-10d8-4c93-befd-3a31799feee6","block_type":"box","text":"other commercial capacities for a Fund. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":129,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"86ca526d-3f7e-495e-9b03-ebf1dae3826a","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":129,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"8144fc8a-a52d-4134-960a-a963862fc9e3","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":129,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"1922ed87-6bf5-4358-8728-16c7f772547d","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":129,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"c0805423-2421-4073-857a-a0af88db819b","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":129,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"daafd966-9151-46e0-8d3d-5661c1e3e08b","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":129,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"f30e71ff-9004-486b-a1d1-87becaa434b3","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":129,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"4845b272-d113-480f-862f-cef814c4a4e7","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":129,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"027c3548-e6f5-4971-96c8-49bae75e5cd9","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":129,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"7412598a-6006-4e2d-a847-cfa273321742","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":129,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"e26f5a03-08aa-454d-ba29-8d5b980c633d","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":129,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"cc0bc688-abfa-4e03-8411-c1f437b89b7f","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":129,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"b7e1a0b2-54b6-44ca-aef0-dbefc5582b58","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":129,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"60b70988-6ba9-4975-9f8e-b67a0eeedf79","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":129,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"d5df0a54-b711-49e3-b130-c390fa725be6","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":129,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"db2f94b4-0648-4bda-b40b-2eb47386beda","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":129,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"a2ab4e6c-421c-4c4f-ba95-4062d5fc09a7","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":129,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"ccd88f17-eff5-469c-9ae4-f3609d25c6c5","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":129,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"c894201f-14d9-4304-890f-cbd9bfaba664","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":129,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"064003e9-d096-4cda-b010-7ce6f49e42ae","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":129,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"5b84eff3-bfd4-4c34-85c8-a1a13f67243b","block_type":"box","text":"collateral or reducing borrower credit limits. 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In addition, some borrowers may prefer certain","page_number":129,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"ecac7b7d-50ba-472d-a341-b9ed055eec12","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":129,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"e5a4d1e5-b84a-4041-b55b-86a3f0afce38","block_type":"box","text":"regulation.","page_number":129,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"e8e3c5a9-43b8-415a-9667-edb38786b19d","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":129,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"2e737121-31c5-4d39-a6a6-c0fa4de2db42","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":129,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"1efc2ba0-d9cc-459c-9784-9aa3c054635e","block_type":"box","text":"various program limits (","page_number":129,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"a55cc744-b0ae-4559-9527-49ef8bfcd379","block_type":"box","text":"i.e.","page_number":129,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"c52a2922-f91f-49c3-911c-32bd95b652e0","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":129,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"e0b48756-fe41-4ac4-ba04-2051a6300259","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":129,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"dd94daed-b664-4240-8b70-826f4ff41c77","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":129,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"fbba0f71-e907-4e5f-9eb1-26000fc41712","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":129,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"58bbc851-677c-4c00-bb9c-886fadc9daf9","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":129,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"7f18f7f0-e29c-4c95-aa5a-c03d71e7a7f0","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":129,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"0695ed13-db64-49f3-9123-394516a31f51","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":129,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"2cb43ef7-1116-4600-a86b-e80b0e2fd2cb","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":129,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"6ad4a4d9-1155-487e-be57-4131a2a4e175","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":129,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"240cc80c-7a03-4867-b48c-37a48d0b3050","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":129,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"3426728e-342e-49fc-bc70-640612aa6023","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":129,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"52d9b6c5-51b4-4bcf-a371-5d53e7b35a8c","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":129,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"723a0866-c067-4da3-869d-2ba541617c19","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":129,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"a1bc4a86-f5fc-4adc-99f1-2f5b0bf42d46","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":129,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"0c1661f3-f487-4d26-a9a6-55485a0f369e","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":129,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"b107cf25-7618-491d-ad25-591dc0227f2c","block_type":"box","text":"II-92","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20db316b-4b16-438f-b4b0-b21727a7507e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3ef3de4-f726-444e-b9b1-e5fb491a24d6","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"f7bdac47-4fb4-4d57-bf52-89b6d881315c","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":130,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"054e6d1b-2701-4d92-a0a7-568172f9f4ac","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":130,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"3c3d4dc3-bbf3-4faa-a130-6febf4268af8","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":130,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"258cbd3f-2f7b-40d5-997e-0c985d305a25","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":130,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"22b49e4a-9893-4947-aa18-cdc1c13749bd","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":130,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"3ef4e142-c1de-4a46-8921-77e6a592beee","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":130,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"c1368416-34d0-426f-8f8f-8507dd1b4266","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":130,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"d4adac89-17ca-491a-8238-da456b18ecc0","block_type":"box","text":"than through client commissions.","page_number":130,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"6dc292bc-3b15-4a3a-a118-be51a4ca5660","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":130,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"8e44ff09-5e8c-45fa-90c9-0ccfcdf9b99d","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":130,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"f1aebfb8-7fa9-4a25-9a92-168a9b13d560","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":130,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"938c781b-213d-4789-8e67-033784fb2849","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":130,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"a0e80ab8-0f8c-4320-a739-dc02f061567b","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":130,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"ca8dabad-ce4c-4f1b-8daf-5b6be177ff49","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":130,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"b7c5ba2d-d70c-42cf-934f-973677c8c760","block_type":"box","text":"research-oriented software and other services and products.","page_number":130,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"7f6f4b38-4463-4899-8e4b-4b5993508acc","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":130,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"e99f6ac0-bf77-4792-8335-ea4d2c7a84a9","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":130,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"7e3625c3-97b0-4bd5-adf7-b1fb3605896f","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":130,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"260dc92f-c3ea-4020-befa-08ac1beb8218","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":130,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e29b7b47-fd71-4509-8e73-53b0bf6e147d","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":130,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"fe1b54c3-e7a2-4b29-ae5b-56ecd6581a32","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":130,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"493e626f-d6f3-4bcf-89fa-cfe8f8d89b5b","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":130,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"60993f2e-36c7-4a96-91a0-d90db3f1dfee","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":130,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"c3a08741-f31c-40fc-adde-a739cbc19921","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":130,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"a2c0ed85-3c97-4937-a8b1-89f8190a2c88","block_type":"box","text":"and services itself.","page_number":130,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"967f4987-cd2a-4e9d-ad34-ac05d1077480","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":130,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"48820320-b405-4a98-9fbb-e7b4221b60f9","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":130,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"bad0aeff-15e4-4cc5-8d72-2ca49f9fcf7e","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":130,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"a5a2ae2b-509d-400b-8f86-66bb653453fa","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":130,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"fbab1bcd-eaf0-430e-9594-005479ef83fd","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":130,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"fe7a3f29-da59-42c2-89cf-181d12e5904d","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":130,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"68499260-3c6d-4063-b51c-2c4350a6470a","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":130,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"774b6397-951c-4027-a2d4-c27e1147c0db","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":130,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"fd2a7b08-d696-45ab-9f1c-47a8f3ca21c7","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":130,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"fad48e47-bc20-4971-bcd2-1e19c08aec30","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":130,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"2c78d6ce-8c2d-41de-901b-b1f625a8d209","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":130,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"696195aa-933c-489e-9627-679542d37015","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":130,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"882d45f8-d20d-40c5-b4c5-5820a5c6a949","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":130,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"e167e80d-5548-44fb-8db2-545079ec084b","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":130,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"d7f3afc7-1d08-4323-859d-7aa05ae79dc6","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":130,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"f75adf24-9897-4433-93f1-705e1da46310","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":130,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"5ece0c42-8aaa-4923-a541-ae5fa903bf3d","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":130,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"02a20612-ed75-405c-8863-1ba9a60228c3","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":130,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"94ff8aae-3119-4498-b34d-1b9b68a41950","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":130,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"b8f4fbce-cfcd-4062-80b3-b9ab48bcf26c","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":130,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"56a59518-3d54-4ed1-a3b8-9e12088db06a","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":130,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"053c8884-9520-4f86-a2c7-b49abcb7edde","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":130,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"b05432a2-32d9-4318-8b5f-164c3026fc87","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":130,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"8e8d44f1-b604-4c94-a80f-b2c70015e265","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":130,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"d0e456d6-4439-4607-bf24-c5573d4dc443","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":130,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"a7c0a40f-e0bc-4823-a09e-b2b38117e54d","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":130,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"1bc5faaa-94bc-45df-b764-7c3b04d585b5","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":130,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"5a9d6183-353d-478c-8012-4f62b2efcee7","block_type":"box","text":"II-93","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e2b728d-31dd-4a53-bd75-fc2bc468bf0d","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e08a590-2e58-49ed-b3b7-5015f6e85fea","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":131,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"34b075db-35f9-4a4b-be40-3a642033a4f8","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":131,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"3d2de4e1-89d9-4bd8-84da-7cbc6c28c033","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":131,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"2a78f5d9-a033-4c29-a6c9-3b540c38a904","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":131,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"ba81c9a2-f9a4-4da1-b278-75d479cbff2f","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":131,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"f4739e94-f0ce-454e-b142-ceb03114f857","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"f1488303-232d-4373-9d27-b5c14ca376f9","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":131,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"09d904cd-71b6-4c19-8f0f-40dfe449c025","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":131,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"c77695e1-13d5-4f2d-9c06-28d418e728c9","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":131,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"abd86fe0-8336-405c-87f0-bc66814cd5fa","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":131,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"a24cdb3e-95cc-4b01-a2f1-b1cda5b88649","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":131,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"13536f2b-903c-4571-968e-e8e16a4b4d14","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":131,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"3b0ac0ff-ffe4-40aa-8518-6724306078fa","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":131,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"241ae0bc-954c-4423-a505-994e24ae7390","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":131,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"f8c7801e-8d4e-4665-93bb-01b3cfc35734","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":131,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"b011efba-b98b-4185-8727-57535be101dc","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":131,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"3a017171-13e9-406b-9742-729bf89574f7","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":131,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"7ab29f0f-4e44-486b-8613-4cc6157e1e4d","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":131,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"268130a8-7ee5-48a9-9611-7c5e4ce36576","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":131,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"f878f50f-acbb-4284-82a4-ea51354716a8","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":131,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"cef78934-1ae4-4c59-bdc8-e3174eb67bbf","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":131,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"7a8c9016-f782-4ca9-a2aa-b390eaa62f6c","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":131,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"5f2f17cb-c006-4c70-821b-b5f3bf694b6e","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":131,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"52a79719-77c9-4251-a27a-a93e6d91ccff","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":131,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"a3e8ca96-d41b-44ab-880c-e354ef4653b2","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":131,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"5f238baf-d9fd-45f4-b122-89f5e8fc44c2","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":131,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"b6a3ae96-bfc5-4a22-aac0-88b204e67398","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":131,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"46ec97b2-4afb-4b13-bc4d-ab50f719a9b5","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":131,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"36e0a0f2-f89b-4adf-8afd-178aa9d805e6","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":131,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"04bb1e3d-af80-49bc-8637-e4a72d49178a","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":131,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"358b1657-b23f-4412-872f-edb2d341535b","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":131,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"db2f2739-14d8-4cc0-9562-e4da0abbe04f","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":131,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"a725b269-c19b-4414-8685-e5a5622c0336","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":131,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"2d56cf02-fa94-45f7-a7c6-65d6bd3f4135","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":131,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"2f0b11c8-a78b-41af-b4eb-2e659e2999f0","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":131,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"7192f1aa-5d77-4818-8275-54fd4d91b4b9","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":131,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"757c63cd-1537-4b4e-b6aa-0c04fa6145e2","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":131,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"f49d0c27-dd84-44ef-a7b8-525f25fcd07a","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":131,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"a5e2715d-9157-4b1e-8a09-43ca12b800c4","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":131,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"79b814b8-5bb1-4282-97d6-657798b49ae2","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":131,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"9da33a4d-ea5b-44c7-8733-64638f62cb15","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":131,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"2f1c23b8-1c86-4eb2-9830-e51f5d21912c","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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As a result of","page_number":132,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d9e7ccad-2f87-4649-8e61-0d6fbc476caf","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":132,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"f5b39eb9-563e-4c2a-8ff4-77e9c03208c2","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":132,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"27fb3ad7-205e-41ab-9661-5b4248643510","block_type":"box","text":"Fund. 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Each Code of Ethics is also available on the","page_number":132,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"1d305f9d-0ced-4a72-8100-dcbc6986ba6f","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"67199132-1a16-458c-9e8d-20b60e3620db","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":132,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"cfbd13d1-b303-46c2-8e71-8ec194c7f467","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":132,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"bb43ae63-78b0-4138-8b6b-502ddb808072","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":132,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"cdbcca99-310e-403d-8946-57301097668f","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":132,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"f4c07860-443d-45ce-bfdd-266695df7c29","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":132,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"f038215d-acce-475b-8a2b-e6f3b9c3e0f0","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":132,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"f67155be-4d35-4642-9bd3-017365bf867b","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":132,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"4ac4ce1f-032b-49dd-a3aa-f0d873ad430d","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":132,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"63dbe7cf-0e3c-4331-b871-05f302e41406","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":132,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"181eec15-3541-4db3-af37-e6b9aa1088c1","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":132,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"d7961e4c-4a6b-4198-a326-3f31d5a48e31","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":132,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"867d9dac-a95b-4c26-b5fa-129987c544f2","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":132,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"9e5ac731-ebdb-45ed-8543-eb4bc477d025","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":132,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"c4f7df48-50c1-4456-941f-57b73c3b9f3f","block_type":"box","text":"services or has proprietary positions. 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Moreover,","page_number":132,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"34fef0fe-2584-4ee6-b58e-43b67526cd2c","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":132,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"9e875baa-9466-4660-9eab-9e4e065d5833","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":132,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"2419fcb0-0756-4ec0-aa19-d383f6358b9e","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":132,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"5d29c62e-d40b-4d51-a997-1d1d886518f4","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":132,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"f23f6011-35e9-4574-99c9-6d52d6a97eb2","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Certain portfolio management teams within BlackRock may","page_number":132,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"c2139bca-a6af-4b58-b668-d83417342cb8","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":132,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"1cacd321-550a-44ef-a137-d69a3f7c59b1","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":132,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"37bf4791-00d9-4986-870a-c711a2194e9d","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":132,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"9490ba1c-9bf9-4992-9bdd-ca3cad2e6c79","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":132,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"0c69706c-7e8f-41f4-bfb4-76e385d44e08","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":132,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"f3a76e9a-a01f-4048-9745-90cc87bdaf89","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":132,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"bf5e4f76-b7b4-4270-bdbe-808103cdcf6c","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":132,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"e1c188ea-7366-46b3-b3ff-266c45f11f67","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":132,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"53945122-5bd9-47fb-bf60-0ed435aab293","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":132,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"ecaa0ccc-aef0-49c7-8cce-c878a37ba0a0","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":132,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"f480be5a-5934-4995-844e-bce1fb7ddf29","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":132,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"586f4595-de7a-40c3-bb0b-1b3f2b4018aa","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":132,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"5fea1d88-809a-4f78-ad0e-e65d9a135b27","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":132,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"36988884-263f-40e7-bcbf-e30f1bf7c3f3","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":132,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"6ec31001-f46f-436f-a928-a62c31130ae4","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":132,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"fe1556ea-b791-477c-b56e-4897101ffe47","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":132,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"6c1f269a-182f-4193-a1ac-3dd20eaba2d5","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":132,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"c8f05199-bea3-4e60-b383-2eaa516329a2","block_type":"box","text":"II-95","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e9be1ef-046c-4f3e-8ea2-3e0e28ba078c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f78928d2-4aec-4e0f-a087-827723bffc9a","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":133,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"f715f23d-3d2f-4b15-887b-bdd6cfd8065a","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). 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As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":133,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"b6337083-b8c6-4529-9626-1712e810175f","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":133,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"b007bb88-1353-4996-a93c-7f7d72037cfe","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":133,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"8d191aaf-f85e-4c3a-b516-c04d31ec0cff","block_type":"box","text":"that operate in certain industries (","page_number":133,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"ce593f63-01df-480a-a383-e453a7a7fb2d","block_type":"box","text":"e.g.","page_number":133,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"dbdd491e-7f23-4dd7-aef2-68da54cfbcf0","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":133,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"1687e36d-8097-4ea5-8e45-4e67c89c5c41","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":133,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"a11894bc-7eea-4ab1-8b03-e3b94966a161","block_type":"box","text":"e.g.","page_number":133,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"8ea29ffa-e807-4405-ae0f-eb6a637168ff","block_type":"box","text":", with mechanisms such as poison pills","page_number":133,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"0797008d-8159-43f2-9c2e-0703aff5974d","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":133,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"af35c9bf-ac4b-485f-9010-1bb5be10fbde","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":133,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"263bca2a-609c-4fb6-8ab6-1571b9b75436","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":133,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"030fa707-1513-4dc9-8d9d-884bea401b0c","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":133,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"308c994e-dc0a-42a4-98e1-3dc4c7eb0838","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":133,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"43400cf7-6642-4a0b-af6f-8dbdfd2f0145","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":133,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"ad5348c1-76a7-469e-8d69-976096223acd","block_type":"box","text":"seek to make indirect investments (","page_number":133,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"f88d271c-60c6-4239-bcb2-05dee5129e36","block_type":"box","text":"e.g.","page_number":133,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"af71e500-a161-4d3e-9b1e-cea8f4c1c3fd","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":133,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"029d1832-06ea-4921-8c91-d85dc8eece55","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":133,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"5ad702cb-9d12-429d-9510-f3e93139ae19","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":133,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"b65e20ce-8cfc-4ccb-8ca3-341afda2f0a4","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":133,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"dcd03efd-5be7-4f86-a930-e40c179d4910","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"2c604f71-d4ee-4b9f-8297-f6090e025c84","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":133,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"ca42660b-2759-4d21-a0d6-9353e941aa12","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":133,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"524f2714-7633-4607-a1ab-60af4830ce31","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":133,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"b058ad59-ac0c-479d-ba6a-148a93520473","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":133,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"cb6c3b2b-a562-44e1-8615-7dce23492a77","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":133,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"4f5f5285-890b-4f74-8517-d571cf212a00","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":133,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"906b5bd4-8732-435e-9b61-b22e1173d6ac","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":133,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"d216c4d6-8a8d-4a7c-82eb-5b0000621d26","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":133,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"6f203e40-82a2-4c9e-a160-fa7844c81acd","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":133,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"58726774-b897-40ec-98ce-aefc3b578de2","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":133,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"a51b38bb-66da-4277-96d2-fb9ca27bba8b","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":133,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"ea089cdf-6908-4aed-ab7d-26be46c81836","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":133,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"4b7d7830-f79d-42c2-8a8d-c049b4e3242b","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":133,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"b97e23b1-7565-43b3-9a2b-855cc23eba58","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":133,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"ceaeade3-a00d-456e-ad6f-390edbf96218","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":133,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"fd2020df-380f-4d87-bf64-a1920beb7e98","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":133,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"0849e6b7-b6bd-47a4-9af8-8d3e1b3c6978","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":133,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"e2409c37-0379-419a-8cb4-25c19b8547de","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":133,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"e623d263-990f-458f-810f-b227c9c02b39","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":133,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"bfba651a-3ae4-4311-8ef3-836797425f81","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":133,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"d8b781ff-a736-4726-87a4-82f2d2b7b4c4","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":133,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"a663223b-ca68-4632-a214-57f257cb334b","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":133,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"264cb495-95ad-4bed-bbb5-8e3f4860ae4a","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":133,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"bdf0d92c-dfce-4260-ab20-3d33b49aef5c","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":133,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"55772408-2af0-4be5-9495-b60f19f1113a","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":133,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"1d8c6d10-92d5-492f-8d93-4bbde536598e","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":133,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"afd1e2f1-09f5-448b-9f2d-1a81fc49bc9c","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":133,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"85309c5a-b399-4820-9c37-df01e45e65f3","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":133,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"24c94093-aa88-4233-9170-b63ed9c1703a","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":133,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"6ef2f2cc-8f7f-471d-b250-f888715bcff1","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":133,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"f28772a4-0c91-4c73-89fc-0cb092b62485","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":133,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"fbd0e174-9002-4507-a76f-a2b1fb341cdc","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":133,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"a4da5f86-3aed-4530-be86-1cbf13e205db","block_type":"box","text":"II-96","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e91d9ad-259f-4774-bb3f-238151b90eb9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64673c05-807a-446b-a5ae-7fa86f2253dd","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":134,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"29ad81ef-c5bc-40c9-9863-c5f13f5d5736","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":134,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"a0728043-2ee2-49af-b813-ede885bb692d","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":134,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"f4a82946-afc1-4284-ba42-808986e4ff10","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":134,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"83e854b2-1d2e-4081-a475-3203a2f469d0","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":134,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"aaa28854-f6e5-4d86-81c3-7e3e9dcd4e5a","block_type":"box","text":"strategy with respect to such security or asset.","page_number":134,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"0a2c3f08-2d1b-4cf0-aafa-b7ff284663a5","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":134,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"819469ba-755c-47f4-b350-c7eab9222cbe","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":134,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"df0247c2-b678-42c2-81b1-4d7171851b62","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":134,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"d73c8236-2ebd-4443-819e-c80fd7340269","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":134,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"b019b91c-77bc-4ccd-8db4-10104b016f31","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":134,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"3be928dc-06f6-4cbd-bc74-b7bb3610d874","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":134,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"a1209ac9-6f3e-462e-9c2a-523069109814","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":134,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"4637ab6e-fda1-4e91-ae29-857755e44168","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":134,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"e853484c-3610-4f19-99ce-44223c074ad1","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":134,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"c17901ab-aca0-4a20-971f-dd1a84612c67","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":134,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"00686d03-88c0-4cda-b595-d56e6c8fb414","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":134,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"4b307328-8fa4-4bd3-adcc-cb6946197ec2","block_type":"box","text":"e.g.","page_number":134,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"375254b8-6689-44ed-8df0-99d5cb194416","block_type":"box","text":", custodians,","page_number":134,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"642e2605-6637-4577-84b1-a7d18b327563","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":134,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"dc6bf041-4b35-4a8b-94e8-b8ea8f57ae6e","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":134,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"0e76df31-2ce5-4f62-9ad8-2ac3320d80d9","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":134,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"c34d6478-efaa-4043-8d69-d88ccdf774c9","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":134,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"5095927f-d218-487e-883a-e5eb3c3e44fb","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":134,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"2c9400d6-16e0-428d-ac3a-85054dc3a36f","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":134,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"64502c6b-f95c-49fe-8201-99adfe1f28d4","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":134,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"2239892b-f569-4fbe-b105-9a5b87fa3257","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":134,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"c3563e1a-13c8-42cd-ac35-f24384bfa3cd","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":134,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"1349603e-7881-4ad5-98a1-bcbe214ed1e9","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":134,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"cd15a5b0-04c8-4c65-8c38-511e31369381","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":134,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"9de31c39-bbba-49d0-a99b-8c370851a791","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":134,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"43f81a95-2440-43d7-a074-98240432fe31","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":134,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"4df83f0a-7a22-46de-8367-46efb0724831","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":134,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"944cb6e7-e692-415b-9cfa-3ef599007908","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":134,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"92487066-3451-44bf-b65c-0907dd693eb3","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":134,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"f788f587-33de-484c-94c3-92ed65bed1ac","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":134,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"111356a3-84b4-43c9-8ff2-5d2b766cbf94","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":134,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"cfc7640b-ef6a-4ba8-981d-bc0f552fdc7b","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":134,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"8bab2cf0-5796-4700-b9f5-3cd8b1582bfc","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"d2904224-fd15-4cc0-bcdf-352d7be57b21","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":134,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"48b78dd8-ef75-44db-868b-375bd9c47de7","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":134,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"34fae1f8-45dc-4025-bea6-25fd8d765c5b","block_type":"box","text":"provider.","page_number":134,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"953dfb52-8fdd-493d-b3a3-9ff29f17455f","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":134,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"9967fa12-74b4-4900-bede-437751ffbbd8","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":134,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"4a5dd122-91ca-47a0-a0be-7117759f6b6e","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":134,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"5c43e891-11f3-4847-bfa1-613ff94b88a8","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":134,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"e4003dc0-a48f-4d9e-8f59-afe2535b9ad3","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":134,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"aa34edf1-a910-47c9-b0ad-d4e68352a3a0","block_type":"box","text":"PURCHASE OF SHARES","page_number":134,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"fb90bafb-e097-463e-84e9-fb5c9d00ee77","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":134,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"f6de6776-8cbe-4d31-9d50-fac3aff7b924","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":134,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"40fd716a-c67e-4e82-a4bd-df98eed9e00f","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":134,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"882c7766-71b2-4905-81f9-fad185eb5152","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":134,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"6c3c0ecb-ff29-4e29-ab5d-47c432753169","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":134,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"08991b16-c3fd-4060-9fa3-d21f8478be54","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":134,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"d4eaeac0-ca7e-42a0-8642-b2c8fc1e726f","block_type":"box","text":"II-97","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1509c3b8-b164-4920-aaf7-d0c80138047b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bc403bd-b76b-4ddb-ac21-c1e5365020ac","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":135,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"62a5ad86-aa09-4d38-8439-37852a926e09","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":135,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ccabd209-aa22-464f-aad9-a5b82f3739d5","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":135,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"8613238d-245b-4182-9b89-2d9a8c3ee670","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":135,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"1b0aaedd-59a1-4904-838f-ec21d0edc866","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":135,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"99d65fbc-97d8-4a9e-aba6-c1ca6155d3a1","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":135,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"945c6a81-95a5-418b-bbfb-2fa973456376","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":135,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"156f8c4c-70ce-4288-9f81-bf168ef27e2f","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":135,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"6d094012-c527-424b-9c38-6fd650aa0983","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":135,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"c5b76f03-3777-42e9-af20-c4b7f0f1b2ae","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":135,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"8e0133df-80ec-4539-ac7a-b34b747ce104","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":135,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"1f5cb581-bf95-4b92-9ff6-45f2bad8701f","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":135,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"d228328d-788d-4294-b767-d905379c4df0","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":135,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"6366fa13-63e5-487c-8140-82b69d33f6c0","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":135,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"174331c1-2098-4237-affc-80f79767c760","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":135,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"bba76bf6-c104-430e-a4f8-d63fa2df1fa8","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":135,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"706d109a-8990-4c85-a1ec-fe267fd67082","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":135,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"80164638-5fcd-4930-9254-91738c7db0cd","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":135,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"dc998350-9501-4cbe-84bd-51a50edee2dd","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":135,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"75c1354a-5144-41cd-a4d5-abf78c8c088f","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":135,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"4d12c441-fb76-4c53-bdd7-b22e7043f0d3","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":135,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"b5ed2ddc-ad4c-4277-bfaa-882b46acefb4","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":135,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"d758d0f8-efab-4a8e-8bd5-6923e712753a","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":135,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"a900c4c3-cc4e-462c-b89f-09b77408da2e","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":135,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"a0d50606-10a9-4183-8989-3676459f1e97","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":135,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"bcc7337f-a96f-4286-ad6c-a93daa356788","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":135,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"9a9979da-185d-4aa6-8137-fcc638a89b3d","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":135,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"39cd579c-ad62-46b2-8ff5-eeab4e9bfcdf","block_type":"box","text":"investment is $25.","page_number":135,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"3f114a84-29e7-467b-afa8-e296754dbf7c","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":135,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"1a84c42c-fe0f-4b1d-8e7f-9e94ade4597e","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"3fe85365-8bc1-4f91-baab-e66cd1fc8a26","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":135,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"8e69eb0a-aaaf-452d-83da-c0af987ed7f2","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":135,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"742b384b-b2f4-4e81-ad55-ecab700a244c","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":135,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"69d985be-784f-4e92-a4f5-0e21fa109884","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":135,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"995a5986-56f7-4b04-a1fb-b1405c733deb","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":135,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"aa831340-dab0-4ccb-a30d-2ed89ab4ebd1","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":135,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"b92e267d-3974-450f-8fc3-f32484e42c57","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":135,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"b17a680c-e07c-41b3-9c54-3e42ff0ae221","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":135,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"c2bf5c69-3f90-48f9-92d4-974de515c0a6","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":135,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4c385407-904f-49c5-a22e-eec52d8363e4","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":135,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"b696956d-e35e-4ede-bba5-987616651e46","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":135,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"d45d21a1-d242-4456-989b-3ce938b90672","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":135,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"c97bf79f-10e7-47dc-8e3e-09a087b073a0","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":135,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"429ddff6-4b12-419b-88dd-52691db8cc48","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":135,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"6b4007c8-faeb-494c-8d72-236253c4268e","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":135,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"f99a1e17-01be-484b-9bf2-003d4fc721d4","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":135,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"5de7aad7-5cb9-4271-b92a-0c5507a71c10","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":135,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"673572e9-ccc8-4353-af59-12265005ca9c","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":135,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"5b12356c-ba48-442a-acc8-d101e7d4c760","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":135,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"35afbaab-f1b4-4483-9197-d3517d61543f","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":135,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"e01e02a8-cc3d-4a85-a5a0-1daad280d34d","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":135,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"a800a2d3-1314-41f8-b3d4-4fee19ddb8e8","block_type":"box","text":"adviser.","page_number":135,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"caf2821a-6e5a-4b65-8ecc-2e16f32fb0e3","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":135,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"932041c7-de01-4ff9-844f-1936ee3e92b1","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":135,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"33bc4fe2-18a5-4106-96da-ae125e4e615b","block_type":"box","text":"II-98","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df649f6f-4fc7-474b-abeb-06fabe49ebb8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ffc3f8d-a867-4e57-8ee8-f57dd0552ab5","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":136,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"aa6c1e35-b074-4a6e-b9e2-86b877e97e45","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":136,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"866bd743-ab45-4ecb-9f09-b09870d051c1","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":136,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"450ff64c-8fbd-4a32-b8f3-534072d64f11","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":136,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"db26a390-9814-406d-a54f-33d5499bc1d8","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":136,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"7a57cebe-4d3c-4410-a463-d15d1efebcde","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":136,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"dcf1298f-d439-46a8-bfa4-baf1d2335cc1","block_type":"box","text":"also be restricted from making additional investments.","page_number":136,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"e5692f47-f686-45b7-9359-32b7e03bdb93","block_type":"box","text":"In-Kind Purchases","page_number":136,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"b63463ca-f984-4476-a10c-c150e8cf53ac","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":136,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"a3a7c145-a114-4545-8910-dcc125afb996","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":136,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"48213310-d7be-4c41-9225-295aef92dddf","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":136,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"03711e07-a73c-4c56-bd3f-0985d0cf2d42","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":136,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"f7165289-fba9-42c1-885e-a19aa375ad26","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":136,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"d49651a5-8454-4f06-9aa3-9d0b3b59d475","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":136,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"ab5dbd1f-1e0c-4e34-9e91-3457ce82bfbd","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":136,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"48cd604c-10d6-47ce-978f-13797702e080","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":136,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"ed229331-edd2-413c-97f6-371ec29676d2","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":136,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"8f1d2af4-0760-4113-a189-04bdd722d306","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":136,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"202a99b9-fc2b-455f-9f8a-7d6e0b7a7087","block_type":"box","text":"has settled.","page_number":136,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"aeb82b72-f1f8-4ef1-8fde-907e8cda4832","block_type":"box","text":"Institutional Shares","page_number":136,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"10f56446-045b-4a6c-9bd5-29d8f4825936","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":136,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"52d90ed7-36a6-42bf-8b3c-12765a7a575b","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":136,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"3f8b2183-995a-4e6b-8525-2fb17da52481","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":136,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"94730686-e82e-4d8c-a221-1a5dca82f0e4","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":136,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"118ed6af-e9b8-4eb5-ae63-6ae760af28d7","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":136,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"a7045ed3-e9a6-4006-a514-a67abb1e790a","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":136,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"001efa24-acc5-4608-a734-7349b2135ff7","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":136,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"1384ebce-cd63-4ddb-805a-2ae3cc200f9a","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":136,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"a9821ca4-64eb-4782-bde1-b0d09d2d5761","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"76de1feb-61d0-4788-a2e7-44a00f77f9d7","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":136,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"7d80697e-c9f8-4c45-a924-da0e75d9ebb8","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":136,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"6e4bc6dc-ff85-4b24-b829-ce00d6b3164d","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":136,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"3a6a2385-75eb-4f1b-8f45-ca09b79ec47a","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":136,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"067bd2a9-edea-4f48-a0cb-bfbacfde529b","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":136,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"2e376ccd-218a-4fb5-a11a-2374ec2afbfe","block_type":"box","text":"these fees and conditions.","page_number":136,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"71e3ae58-25ba-43a9-b500-471ac990a503","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":136,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"dacffdc7-31b7-4ec6-9837-082c29ceb6cf","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":136,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"0871350c-83d4-4337-8ca4-919c53e197c9","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":136,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"dd8505d5-7ef6-4ff1-a8cf-397cb540a9d1","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":136,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"19f1451e-db54-46c3-a257-36f76f12f303","block_type":"box","text":"incurred by the Fund.","page_number":136,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"12ec1cd5-4bcb-4e6c-b527-387115590785","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":136,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"121875af-adee-49c2-b738-4dfbd148785a","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":136,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"eb306d14-1615-4045-a857-f3644ad9d099","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":136,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"8e0e9d98-960d-4543-8a0d-f159d96f1796","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":136,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"2eb19796-c8af-4246-b46a-5bf9021d627a","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":136,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"b1b5625e-5b80-443d-9f80-355a6f1ae172","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":136,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"8253a85c-3403-437d-b93b-921be9018b89","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":136,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"00d23583-8f11-41d2-8875-2746af10176c","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":136,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b6ea9269-21ad-4ce0-85bd-22620cc5a0c2","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":136,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"409a76cc-b62b-4866-8c0a-2f1ce1939580","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":136,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"f8ac3631-ccd6-458b-8e12-887de0704c23","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"1899e7f2-5a07-480c-b8c0-e13c735fe7a1","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":136,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"c4906766-7c4a-4666-a45a-55867cf580aa","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":136,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"e293ceb1-a3a5-4c0d-83cf-22759e0e6145","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":136,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"6d74a173-ba5d-4c9c-bb01-042da31a4635","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":136,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"61191daf-fd0a-403f-844c-899eeb20c323","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":136,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"842730d1-5e1a-479a-bd60-3e04e1b56042","block_type":"box","text":"II-99","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d73da043-6ea5-4435-b234-28148e164726","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"509ad355-f0f0-479f-b2d4-ab6e76a46595","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":137,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"333f500d-c9a4-4a57-b851-0837ee8aa6c1","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":137,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"e3f7c09a-01cb-4bca-a7fb-1a08b8455839","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":137,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"1a957d3f-a7f1-4855-9cf9-bc757256980b","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":137,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"50cf8f05-3d62-4ece-b733-acd014b6fce6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":137,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"55e99326-1711-45e0-9bf7-da5d60665f52","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":137,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"1fd2992a-cfd6-4039-97bc-ed707601e696","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":137,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"819a7740-42dc-464d-a477-a1a67d2762ab","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":137,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"b049f8f0-1692-4cc1-ade1-90f358aad4e1","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":137,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"9f9e2f26-7370-4789-b7ab-c1b9fae97460","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":137,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"c3fd4b19-8511-4af4-99b7-cb7e80a0f271","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":137,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"a71fdff8-2ac1-42b9-9b8f-f670e3860701","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":137,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"a7cb97f4-96e0-4bc5-bec5-50c90b95809e","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":137,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"b12bb958-7224-4e03-ac46-6c0f48b27ca2","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":137,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"a988d325-a920-4553-a443-cdc79488dd03","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":137,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"b945aa4e-e959-44ca-842d-9852dd2fdf38","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":137,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"faf47fb9-597a-463d-96a8-e884b6948e9f","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":137,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"87238ac7-c080-4021-b202-7d9102f185de","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":137,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"15e381ac-b9a6-480f-974c-b53b0baa8284","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":137,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"019cffe5-b0d2-4bea-913f-ff251a6a45c1","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":137,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"fb87092c-d4c4-48f4-976b-8fc0d07b8e2e","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":137,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"dc2f8484-a9a6-4708-9b23-2f25b904caed","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":137,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"b99c7e64-b560-47c4-b034-66c99433325f","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":137,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"1bd80a32-e8b0-4541-889e-59dce57072c3","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":137,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"7baf84fd-db99-47e8-a1fb-c6fd6342c999","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":137,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"2d13f9bf-bbdf-40f2-9281-2d3b3ffc8e40","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":137,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"3ea12563-9b33-4540-820c-47e1e5698843","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":137,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"687b87a6-23d1-4b3d-9632-41c37c5a5bda","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"5ae70b0b-ab92-4aff-8dff-cb0c07c3f260","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":137,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"0788275a-c5d6-42d5-8954-e09f7f71d96f","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":137,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"a80bdf7a-1835-48bd-b1e1-44ddd790af48","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":137,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"9ec810b6-ab23-4db0-baa3-5be3ecce2181","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":137,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"b9193483-d611-4fbc-8f4e-62aa68b534b1","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":137,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"eebd9f9c-f0f6-4c57-8363-d9b735b1918f","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":137,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"c19c7489-ac2f-4e56-84d6-378fb9d69c47","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":137,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"39e0f930-7ba1-473f-b4d3-27ced5b1fdef","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":137,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"d4a7c375-ad01-4059-be84-3eb7ee1963dd","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":137,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"3d089d91-7214-4213-97dc-cb205c76ea7d","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":137,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"3a9c938e-eaa2-4d83-affe-4472b28d6451","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"399f2954-c7da-4548-a8f8-657ac437f4d5","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":137,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"669a2b70-bd94-4c08-938f-b5fd8c9babb2","block_type":"box","text":"periods indicated.","page_number":137,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"2b0ccb42-469f-4dce-b732-b8dcbd7da35d","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"14d2cac3-54d2-4de7-905d-ed8982f97d7e","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"87baa97b-bc92-46ea-8685-ea9b8401435f","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"bd73c02d-1766-4e11-9838-3e1baf779002","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"f251f5d9-252d-482d-8d57-17778a39a5cc","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":137,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"fd5fad3f-e1ce-464f-be60-85a0235ee9e0","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":137,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"2b6172c2-2c64-497c-9213-3b0765fcd851","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":137,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"8c72f257-eb35-4393-8361-4cc474d3e9a4","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":137,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"54bbff9b-173f-45e0-b011-ff303f90662f","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":137,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"b57e153c-aee3-4f6d-9ef8-858975731dd7","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":137,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"e4bf6af3-c9c7-4ebc-a4ef-5c860d90178b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"2e2f8316-abac-4ea8-a85d-4d875771e7ca","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":137,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"688f33e7-12bc-46fb-b6b8-8a788b35a168","block_type":"box","text":"II-100","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b54bdd8d-1c4e-4986-a61a-6db9ffec32ee","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be565a3e-0a01-4bc4-87ee-564a71c80e61","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"5e5abf5a-1c03-4157-bb39-6da825ce8180","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"b949e4ee-dccd-478d-acf3-5b5682ef8010","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"5d9d0b80-cff8-496c-af0a-ff0fa228da2d","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"b3f48ea1-c71b-46e6-8ab3-2e2c12055099","block_type":"box","text":"Reduced Initial Sales Charges","page_number":138,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"1bbaa7ee-e486-43a8-a8e1-bddc0b156484","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":138,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"16ea0389-6e31-4483-8e98-23b4d69fa6c9","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":138,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"37681afe-4c30-4792-9a6a-f129cffa1264","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":138,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"073d1d00-b9b3-45a7-aedc-448e98040438","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":138,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"e3866db0-21ef-45a2-a2e6-9e7edc6167c6","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":138,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"3f3abb3d-c923-4299-8548-6ab1f9506d6d","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":138,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"e210c324-843b-4178-8fe9-4d39de205b9e","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":138,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"f8e5172e-0a6a-41ad-a0d5-67566af82d90","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"32902c52-107b-49a5-8444-f7c9ea4254fc","block_type":"box","text":"Reinvested Dividends.","page_number":138,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"c471bea4-990b-4787-983f-511c60a308f7","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":138,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"95f80ace-b517-4bac-8932-f566468cab6e","block_type":"box","text":"reinvestment of dividends.","page_number":138,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"7070794f-3c82-4773-9aff-84e3e5c816a4","block_type":"box","text":"Right of Accumulation.","page_number":138,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"fc1e1e94-2e70-42ae-9325-0024d94b7e5b","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":138,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"9894daf0-2439-48b0-baef-ad56acc7bc1f","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":138,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"7cc14cab-3b3f-477e-930a-1d39f8626274","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"6941c278-b457-48dc-9e28-32f5c59f4d60","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":138,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"78cf4f76-7e02-4b57-9332-24a4372584ea","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":138,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"d57eaf84-bcd1-4a08-a817-ffeaaaa6c1f3","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":138,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"2f2c1825-360f-4ddc-928c-6ac662f6667b","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":138,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"e5a9a1a5-bee1-461b-af25-19a26ce12e6d","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":138,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"7f1dd9c3-a20d-44f4-b2bc-e7c2d32b2ded","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":138,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f92724f6-4f6b-4021-a19e-f28e2f17ec6a","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":138,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"855d50e2-b915-4d14-87fd-b214c0857cc7","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":138,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"a5d4609e-16a7-4b7d-96ea-c6d87ddaa45d","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":138,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"53d786a4-9280-4a9a-bba8-7a471ccf7486","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":138,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"7bf9527d-5737-4323-918d-7efad4e3dcfd","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":138,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"0f067670-fff3-41e6-b262-ea5cd6eea800","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":138,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"206941de-f356-4977-923d-8c98585f82e8","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"1aaf9490-43f2-49ce-93ac-4643d66ebb78","block_type":"box","text":"Letter of Intent.","page_number":138,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"0dc99124-0f97-4568-ae47-9a13e54c4561","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":138,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"be6dbfe0-966c-4659-8a89-63e08bb75387","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":138,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"1429fc3a-0538-4872-9df5-99ccd4dab59e","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":138,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"3afadbb0-4da8-4b8c-a56f-574af2abd5fd","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":138,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"9b6f7f3a-d2c4-480b-a596-aa97d94d92a6","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":138,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"f6ac2608-044d-4349-aea0-4611202e956d","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":138,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"3ea75ba6-962c-4110-8fec-53e4f33d6e06","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":138,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"b95904a0-473f-47d0-a75f-31dbdcf1c5c2","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":138,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"f64d92c1-fb30-422b-9d76-273a6b6aab04","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":138,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"8051a77e-b385-48f3-997e-f0b6a02b8194","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":138,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"86445f70-6540-4c23-9612-3f81ee55b5c6","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":138,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"fb732068-b7dd-4a9e-883a-f4d6ac9b4b44","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":138,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"8568b356-1e07-4fd6-8733-012ea5ae17d5","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":138,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"2bd69c45-d530-48ae-9c97-2b22bd758437","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":138,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"06137e96-c64e-4920-a8f5-6b2c434cdb31","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":138,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"c23d3bc8-dfc6-47e2-ae75-8fbd7ea6b7bc","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":138,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"23e91ce4-9f90-4198-8b90-4119fa25f7a5","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"5e5e8e7a-6b58-413f-b864-e26f030e3d5f","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":138,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"f8ff7ffc-ef22-421f-94c5-189e946d7bcd","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":138,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"4a1cf345-80e5-425b-aa64-ee8ae3e35580","block_type":"box","text":"Placement Fees.","page_number":138,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"c81c41c3-a73d-4ae5-bbfc-e7bfc1909774","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":138,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"45f5ca84-6874-4f66-814c-307da6c1eadf","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":138,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"b2035b16-bb34-4328-852a-ac7b064b7856","block_type":"box","text":"II-101","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"20a05e5f-5fa1-4581-867f-e482f159f7e5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73420c04-ccf2-4ef3-bfb4-71f45321cefe","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":139,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"4c1fca7e-6e15-4dca-8091-b58101ae437b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"d20f5283-929f-4c8f-8fce-71a7489d744d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"fcbc7fda-646c-4ac3-b238-2f6c187a1375","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"9d65b4fa-9130-4387-8fe0-f5b3e10c1474","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"29b676b5-9850-46d9-9355-275ef68c3313","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"c8091022-ec08-4147-a6dc-5c20668876e9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"2503cd4c-0001-49b5-a867-1648287de06a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":139,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"79059d7a-7a80-45f0-9800-20790c451fe7","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":139,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"8e23f3f1-dbfa-4b9d-ae6a-8e91c7b9dcd0","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":139,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"5600ef4a-7ce3-4e9d-9c4f-d1af2f723944","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"33fc7f6a-2676-4c58-b14c-d48b2c74f62a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"82380958-1b1b-45ae-9a61-0132830679cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"946c2a90-fee7-48cb-8169-e271cb57e577","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"e6af536f-b106-470b-9bd5-90e1c0dbc60d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"e70c08a0-1913-468d-83ee-019568b50c3d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"d9386969-e5f2-43c3-b827-faaca772d594","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"ee66fe40-088f-47c0-9070-b257e08ee151","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":139,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"28977d05-b6a2-4c0f-831e-48a34685f4fc","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock 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amounts:","page_number":139,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"c5782b77-a1f3-447d-8a7b-7cfeae3c0e90","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"444834dc-3850-497d-ab39-f69a57e91e19","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"5088e5c4-148e-415e-8553-86898dd13f86","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"7db142bc-5d40-4c08-bc88-0b35513b99e0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"b244e015-0bcd-4e38-be15-9b97500f4d63","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"8a5d4a89-4b45-4c59-8bf9-ac790be9febc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"c61d19e4-681a-4a80-b234-3461613995e3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":139,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"382ec520-43d4-45e8-a0e3-5d7a7c26723d","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"925586b7-9c1b-4d1a-b4a9-e3c6a0b2b95a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"3b0d3f84-81dc-4b4f-af7f-eb67fd550ad5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"04dc059e-c90c-445e-9329-348a6d9cedc3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"a13dfce2-d5e1-4096-b2ba-4f4651e18d70","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"9619491a-6fe2-4463-8fd6-264e5cece8ed","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"56113f45-f89e-4976-a3f0-d60f89df5c80","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"eb4c3087-0ab9-4409-b635-690b66740599","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":139,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"609e9282-4c1c-46dd-b92a-2a52b9a2a989","block_type":"box","text":"may be up to the following amounts:","page_number":139,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"3a22368b-2c52-47ce-9ce8-8ba774f9a8af","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"7e273d38-1cd5-4792-8654-c215744b0da6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"4ea62720-93c5-4bd3-9e43-e5bb1c424196","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"4aa8deca-fb4d-47b2-b86f-6d0deae09a56","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"bb8412ef-7de6-4034-8cb1-aab2f1445ad1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"60292be3-7760-40f6-8181-0ff9512def1e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"2eb4f993-1e64-4a84-aeb3-09451246886d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"3afd5ef7-c526-43d5-be13-6acc4fc3d256","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"bd9b5176-071f-42ab-9f00-0532604ee3d4","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"7b0bd1a4-98fc-4758-bb7e-68bd4f87f248","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"ccb67252-4e00-46f1-82aa-a9930b856288","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"9ff1a8b6-0076-4ea5-b4f4-8d358048a700","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"c6b82ff6-c987-4774-bf34-1db093cb05c6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"30c16c8d-a326-446e-8cfb-f1848ba3dc8e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":139,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"82a4cc6f-2dd2-4773-a57c-3a74f81e8d58","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":139,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"e9aa771e-ee31-4189-9039-9c5a4e433106","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":139,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"1a2598af-6a03-410b-b832-e4a9c67557b5","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"59ed29e0-2814-4d14-be0f-0fe2a2402a37","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"758d9961-2506-4e50-9d30-e59c2636ae75","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"da5c7a5e-30d9-4657-8eb4-627273d7b5aa","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"1a367ce1-ad9c-4c23-a6ef-da01a9763def","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"cf3aeeaf-a2f5-40bc-8cc8-792e1d0d62bc","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"9e2acfb2-b0ca-4a03-a0fa-42642cff4b80","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"acac9bf1-d51c-4ff8-9de4-f4e678bcd801","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"173c1d69-7b45-4b7b-94a2-a0839ad0cfdc","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"029a79b9-4c5b-49e4-be9e-324b48459796","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"7b5b5458-5dfe-4c2b-a6f2-723580722a4d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"a2369b3a-7036-4085-b3bf-8109c321d503","block_type":"box","text":"II-102","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c6c47bf-d70c-4399-b423-2ebcb539190e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a80f3c5e-df67-47ab-8788-9eb0250ae40f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"87afe64d-d6a7-4616-9a74-4c02ea3371f9","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":140,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"a5d054ce-b78b-44a6-852e-e99040d2ac83","block_type":"box","text":"the following amounts:","page_number":140,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"fb089dbe-f1b3-48fe-bce8-00de86557afc","block_type":"box","text":"$100,000 and above . . . .","page_number":140,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"90c76b42-1f87-4cbd-9b3b-a42da32164a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"d8f7a365-fd92-4d87-ad39-bdbdf00ac6cb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"8cce5a0b-4b23-4202-a714-03f8de731322","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"206ccc3a-6aed-4c5a-96d2-9364e3fcdcf0","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"d8391998-763d-4cee-b74d-a7556dbfac88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"60dcc55a-6a49-4fb4-ba06-6be8c1f36c82","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":140,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"0f7cba9f-b5b9-46d6-87a3-566888e1f7fc","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":140,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"f78c18a4-a141-4d29-ba03-92af50466463","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"ee8c01e5-373f-4252-b813-a6033181fb21","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":140,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"db6801ab-dd49-4747-b0cd-3b2bb2c23aa8","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"3abf4b49-25dc-494f-873c-75cdd11ffbf3","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"46062423-1517-46cf-abf2-9beb63768b56","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"8ee5177a-dd7f-482b-b639-1d4ee8eafa0f","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"f0e6451d-22c3-4f6b-a161-4674a400e46d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"88ea9dad-f994-44f8-8627-79cca909c2f4","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"0e05ac99-3b8b-4e0f-a440-7d64311a05b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"62687548-9a37-4447-9944-a64fbf56285c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":140,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"006861e4-3c91-43db-9d98-7324c22d4440","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":140,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"4a53bc89-e6e0-4ec1-928b-e3e3a66eff8d","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":140,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"eb85c7e6-c295-4dfb-b2d1-1f62f251fe04","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"3250ac26-3694-4006-a47d-4ef086f1b07c","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"9ea7518a-ab7f-4cf3-8b9f-7557e169be16","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"ee17c74d-1efe-4ae7-85a0-02222fa3e378","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"f87d71db-0d48-4c06-a9b9-203a46ca59e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"f7f27345-a464-466f-8479-ac360704ff1d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"5ccc8974-da14-4766-9ce6-fd09e1bb2465","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"079b5f12-beaf-491e-ac20-147d9e8a41da","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":140,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"4a094810-411f-46bb-a35c-1b8a14d4980b","block_type":"box","text":"®","page_number":140,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"b1153c50-069a-4f8b-9bfc-8b1e20f88ccf","block_type":"box","text":"Index 2030 Fund, BlackRock 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amounts:","page_number":140,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"726ccd94-71a6-4940-9bc8-51731046c0c8","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"964769a7-569c-4c1a-8097-e37a43bed78b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"2c609718-da2a-4f31-891a-1fa4b434315c","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":140,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"0ec27cb5-e4a2-4b30-9c24-e3335a029cc3","block_type":"box","text":"SM","page_number":140,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"63dd294e-3adf-4344-8936-133e051707af","block_type":"box","text":", the 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Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":140,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"6c9f37ac-15f9-4761-9b6c-e3c7fc51e49a","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":140,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"4b46705f-653d-4079-801f-852da8aee54e","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":140,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"db85a94d-77ad-447c-a489-4ca9b40050ea","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":140,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"027d3772-12f7-4a95-b0af-6a2431505439","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":140,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"294091b4-b468-427a-8673-4db5a40d6c1b","block_type":"box","text":"$1 million).","page_number":140,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"550e9960-b26d-4b60-97eb-b5744de99973","block_type":"box","text":"Other.","page_number":140,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"2fafe195-ea79-40f1-b867-27e79cd34d5b","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":140,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"ba978e7f-b5f8-4f30-9582-6cef1468c136","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":140,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"eca04c9e-056a-4904-ad54-d99f0b304e2e","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs 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financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":140,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"1cde5d34-5bbf-4833-8585-1e2ea141cd7b","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":140,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"bbc59938-158f-4ee8-af97-dc0e0d0a16c2","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":140,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"c72c5ff5-1f55-4288-82d5-a99c78bab8b5","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":140,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"d64083d5-ad38-4e5a-b39b-8af2d4a0e04f","block_type":"box","text":"II-103","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"241e68fd-1fd4-4d02-9b44-3b26cf197b6c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33e1927c-70b8-4e0d-b0a4-8711cdc7a53b","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":141,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"829ab338-fd79-45e5-b6fe-9a4776137b38","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":141,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"6082e3ad-1e5b-4b01-8f8e-2132178925a4","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":141,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"8d704da8-ec8d-4bc4-8f5b-152f3f1a0656","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":141,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"2f6f8c28-9dd9-46df-b5b1-0be31ef85427","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":141,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"b0d3a892-936c-4246-92be-d7fa30615986","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":141,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"581791ed-76b2-4283-861c-a017ce64056d","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":141,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"0cc00564-94ab-48c9-806d-310bacdac456","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":141,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"3b7d5c8c-4956-4d4b-9ed5-1fda9245c2f4","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":141,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"52df70cc-6618-446f-b4c8-d5ea65392a01","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":141,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"ffce9cac-17ed-4691-bea4-c87f583b7c12","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":141,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"77862420-857d-47b5-b4d9-bef3372513b1","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":141,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"06456a4c-cf5b-4112-9235-90279eef9e36","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":141,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"749a8bb4-23a2-4519-ba09-3787783e4b82","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":141,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"70228788-c0e1-4a4f-abdb-2e973d0aaeac","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":141,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"1ac4ac12-2f75-42db-89b2-bd3931615554","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":141,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"ded7efe3-3ec6-476d-8267-7186cbf38fa5","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"6d6ea872-db39-4618-9b91-96d6e7831ac5","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":141,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"b345bbbe-40ff-4619-91cf-7c2a4d6cb3a8","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":141,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"94b72ac7-18c9-44eb-a543-a2d7ba14d4c4","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":141,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"55152c5f-53a8-44f7-b9f3-ec6a33ddb4e0","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"4e6b00ee-f510-47d1-a02e-fcd0834eb359","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":141,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"99a66c51-5cd5-4131-a2f3-762c0a739114","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":141,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"23f6bdb7-7f58-481e-aad2-e0ccf5e5b162","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":141,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"1cdc606b-8709-4c34-921b-8405ee858635","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b114abe7-e56b-464d-a44f-d22ded389c96","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":141,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"3bdcb800-9165-4d8e-bb5e-4ba882d6d77b","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":141,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"ac8a77d7-ffdc-49b5-b4e2-2816763545c4","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"27afabbc-6a33-43e2-9e8d-79f32d2cc21e","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":141,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"903ff261-96c0-454b-9294-771b22797710","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":141,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"d4ac9b6c-0df9-4dca-a7f6-1ee2b4781021","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":141,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"17dc2b12-7d4a-4fc7-bfad-ddd46c6780dc","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":141,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"deac71ab-45a4-40d7-8e01-cb938214314a","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":141,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"15f228df-13a8-4274-bd77-22409ee858e1","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":141,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"d70c259a-b440-4dde-9e3c-e5c02763c90f","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":141,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"ff56d22b-3a37-4901-8041-d8d20d4c06f9","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":141,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"1e534624-d3dc-4ead-b767-64947a7499bf","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":141,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"1f8f4103-9c6c-4fe4-8bec-8648f336581e","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":141,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"56f2e3bd-ee75-4867-96c5-4b93780c1a58","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":141,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"6efb11c7-0365-4e4d-a14f-fb909371c418","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":141,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"39d12a5e-e633-4553-9210-351e9cb4c443","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":141,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"80e0fecd-8f1e-4389-a0fb-16bc52921c36","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":141,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"b906b6af-0a28-4f2b-87ec-1346991fa25e","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":141,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"04344fd2-9087-4988-a437-6ec60221c9d7","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":141,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"b390ba88-c0bc-4f26-92cf-3de3ddfe58cc","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":141,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"b5f9b015-5018-4c9d-a182-bbab3824a1a1","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":141,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"0a214cbd-93a7-402f-bcfa-0af3c9500ce8","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":141,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"ee95777d-fa98-4ec1-8647-60d3778fba4c","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":141,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"3c481976-5ce9-41ae-b11c-0f468015a9b7","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":141,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"24803af9-c3f7-4455-a9df-8224ccb10f63","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":141,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"ffc25a8f-8251-4a19-b14e-34fb8daabb6d","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":141,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"fb06bd7a-4b75-449b-8838-4878ace7afe9","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":141,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"827900f0-04bf-48a6-96a6-7a564b59d9ca","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":141,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"f09ea6d2-1d40-444d-86f0-a9f23673ba70","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":141,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"1b23e1ec-b33c-46ee-86af-af304fe25cac","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":141,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"b5c1cd26-f0f2-4fa5-948a-6ba9bf8ea2d7","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":141,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"30f571fc-ea91-46ff-b38d-0b251f5236be","block_type":"box","text":"II-104","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a23703bb-5ed9-4673-990e-9ce24f7306f5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b13fb2a8-443b-48fd-81b2-9475e97e4714","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":142,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"8cec4dc3-11fd-425d-bdba-11206d79efac","block_type":"box","text":"the absolute discretion of a Fund.","page_number":142,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"d453752a-61b3-4faa-b2b9-23b5a94419cd","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":142,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"9950ae78-1ebd-4b8b-b364-144a40871059","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":142,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"43aeb3e5-7261-4a21-bf8a-58235462c83d","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":142,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"3b191ae7-b7f6-4ae5-9459-df9b3fb5372d","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":142,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"3c8a2112-bc11-4df3-a639-ba4db9bee80d","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":142,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b3a4961b-b92e-4c2e-b50f-69992c0cd4e7","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":142,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"245085b4-3780-4abf-aa81-36f27c98fb55","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":142,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"b2d31bb2-9957-40e3-978f-52a07f1fea2e","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":142,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"0e14e8c4-cf07-4b20-aebe-f9d580e09af5","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":142,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"016c844f-9e9c-4e0a-a0c7-6dc10715338a","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":142,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"f95fdedc-ff35-416c-ae09-2d0d02fe64f9","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"1d6aafec-5b03-4af6-9061-29a37a8e4ec3","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":142,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"00669fe6-e1a7-406f-aa28-abee067bbad6","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":142,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"7b49f496-0e4c-4080-9e48-2fdce10b4a2a","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"4b64e24e-6f69-48e2-b87a-b34fee434282","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":142,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"bf80bfbe-b9a1-4851-bc01-474e649e674a","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":142,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"1947cd65-6d6f-41ca-b786-aa9eab3f770e","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":142,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"f7fcaa2c-a146-4b93-be6d-8e40f0cd61cf","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":142,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"18a7d359-9a83-40b5-ab8b-7eadf97ee9d7","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":142,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"4ddc6d1a-91b3-4def-8c2a-4340849af0f8","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":142,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"eb7e7dd4-edd5-446f-98af-fb0da35efdaa","block_type":"box","text":"public or private investment company.","page_number":142,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"a53d301a-db41-4471-90df-b75bac9fa36d","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":142,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"ca2e8d15-4c39-4ccc-a7d5-8b165766f9f3","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":142,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"57ed01e9-dfe4-44f1-84c3-d8f3530c98bd","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":142,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"fcfcdeba-36c6-4054-9d98-0b5fe2d08afc","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":142,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"312258bf-c319-4abf-9a4d-07c1d7c6a384","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":142,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"02090309-8621-4e49-80df-4e7d45b19416","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":142,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"90e64961-230c-4747-a2a8-2355b9dad89f","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":142,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"04d13c1f-6691-4d40-baf2-5c6a9dcfa256","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":142,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"dbc20362-67d7-4824-819d-fa6757a04475","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":142,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"9ba9d3d4-7146-4cd2-b20b-0023ef225070","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":142,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"15e45d4a-2b95-48b1-a8b6-555bd8645df1","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":142,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"b6f7dda8-9957-46f5-84ce-f8b29b871c27","block_type":"box","text":"intermediary associated with the account.","page_number":142,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"bd819a6d-813b-4af5-b1f8-cbb72df8e6b3","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":142,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"e84f1f5f-e8dc-4473-8a01-9ee1773371a6","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":142,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"e0bd5a05-2eb9-4294-85c1-a4040825d775","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":142,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"48c63f56-bf85-4f82-a3f1-c9e4f632bc0b","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":142,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"04a9d4bf-84c5-47ac-9114-41a5f9a8f2f9","block_type":"box","text":"CDSC shares.","page_number":142,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"81956dd2-8afe-4395-bc20-63e5081599a6","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":142,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"27802cac-cb78-4e9a-8352-e19351e2053f","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":142,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"b3dd8003-5064-41ab-b500-20dc8e0233cb","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":142,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"8eab6424-fec0-46f6-89dd-e9b03d375a66","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":142,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"f1fe7673-50b1-48d0-8f41-8afd8683d57f","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":142,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"b27295e4-e8d3-4a0b-8669-2aa2ddf6c93b","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":142,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"4053ab87-937b-4b9b-a24e-c6990bc07a25","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":142,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"507412c3-e5dd-4350-ab54-1fc8b46b0259","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":142,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"2ea57eea-b8eb-456d-9302-eb69ddf86c27","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":142,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"3722f260-302c-4dc5-9a83-12aa6ba5e11c","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":142,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"513b76aa-4905-46a2-ab87-4f5c6e4251d3","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":142,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"5a178c56-c835-453a-9e66-d220316051af","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":142,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"c84b094b-874a-40dd-95d4-9291e26bccaa","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":142,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"2d0b4981-ad09-496b-8c7d-1f00f01a66ac","block_type":"box","text":"II-105","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"33ab153a-318d-45e0-a6f9-acff5fce5b62","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54fdd29c-d88e-47b2-a487-ee6572e2c990","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":143,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"ad31c3ed-fd26-4827-9d5c-6b3eeae38320","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":143,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"503b8b91-ccfa-4a0e-945c-94df20e2c48e","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":143,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"2c11bf23-f5da-4162-832c-c4cb854a6e44","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":143,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"2c105425-8c22-480c-9b18-bedea68ed19a","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":143,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"e54387ca-d732-45f7-bee3-a74d65790c73","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":143,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"cb9ad587-ca90-4593-89ad-90b0f41eb93c","block_type":"box","text":"Investor A Shares.","page_number":143,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"b18e15b9-f391-4214-9d15-11a845176b09","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":143,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"3d650bf1-0227-4ce7-bdf1-f9fe17e881d7","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":143,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"0eb6d2cc-f3c1-4b73-a52d-0db70f3a8d06","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":143,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"073828fc-0d94-4d14-9f57-50d19ed8c2d8","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":143,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"dc4b6ff9-0daf-454d-8fab-99f621cd30ad","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":143,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"06963b16-cbe7-4200-8a69-be23a758d7f1","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":143,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"8644355b-5ab5-41df-9822-50682f83d3ae","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":143,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"057a8b23-9e59-48c9-854d-42ca65bdf460","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":143,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"b900194a-472c-4b5b-9f7d-88ec1d089cb2","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":143,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"ea85380b-f491-4c8e-8489-254c6377f979","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":143,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"6c01c637-1139-4d6d-872b-583e874c44b2","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":143,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"7508f66a-b449-4d7a-95e7-77d13f466fa6","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":143,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"3c056c37-3521-4e4e-ad1e-8d56abb5b37d","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":143,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"5fb85bd5-0861-4df5-bd44-3891fabffd80","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":143,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"9d72f6b9-bd24-413a-b6d8-65aef2306e0c","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":143,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"2dfb8607-71ea-44a0-a881-73e76e86e741","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":143,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"e2708047-aa65-4080-9f39-d286228506bd","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":143,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"eb36ad09-6039-4688-a3de-37a2914dd093","block_type":"box","text":"“Investor C Conversions”).","page_number":143,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"eb70e1fe-d2c7-4375-9dc7-da0124a8bd73","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":143,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"9259ceb5-762f-4046-93c8-856eef0e165a","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":143,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"aa3a8f4d-01a4-4d75-b24d-c0bf5e46cd9b","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":143,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"c9ff0432-cd48-43f6-92c2-35b06acbf539","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":143,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"9ef30cd4-9ec9-4763-9cb3-a4eba63c7bb0","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":143,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"1923b2f8-a22a-4aae-b333-5a895c3c884b","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":143,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"92559805-308d-4212-af2e-d2857e2735a3","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":143,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"7cadb648-ae7f-4ab5-b7c5-fa2db5dcb74a","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":143,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"cc42176c-283b-4ae5-8414-bbebd31ad657","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":143,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"8ce976de-94a9-41de-ba66-80c26880e7b1","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":143,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"d9399ee0-fdf4-43f5-be19-64ea3107c2e4","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":143,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"fa991f94-56ff-40ed-bf56-365be1d08cea","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":143,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"1f4f38f0-0227-4917-9f9c-c0c56f49594e","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":143,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"4fcd9868-d143-4503-ad2c-f430cad159c6","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":143,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"3f669749-2883-4a75-aeb0-94562db073e1","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":143,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"058414b3-fa3d-4c70-ac60-77dd263a9bad","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":143,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"b77464ca-e66d-4d1b-9863-ebfaf78d6b3e","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":143,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"de3f9dba-8c0f-4d3f-9f0d-d33450fa11d4","block_type":"box","text":"redemption.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"b0566716-eaad-4509-81a1-b662ca944492","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"fa2cb1d6-ef21-42e9-ab5c-a5e7f08afc38","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":143,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"1ab40a54-74c8-4cf9-8aee-9a662f00dc5e","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":143,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"e83a562f-9ee7-4e44-b72d-11c314ab9e0a","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":143,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"fc00c0b2-3886-4545-a50c-5ca3fa90149c","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":143,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"eca000ee-8622-4c1b-b3cf-56a360423514","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":143,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"21e060dd-31ed-4d2f-8e12-5d6f8fd1695c","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":143,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"5a065e95-a0ea-4298-ab8f-ec2385c063f0","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":143,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"db3d8c8f-c170-4456-b927-d77de9777135","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":143,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"ad176ed5-a898-45c2-b468-90c485bf3690","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":143,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"a261013c-417b-451f-adbc-caf4be4a159e","block_type":"box","text":"II-106","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e78feccf-df7d-4aee-836a-8f64b1824c35","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a5098dc-5d69-4a37-8af3-5e74005dac6b","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":144,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"c43f97ea-3916-4974-ad1c-1d7baa7818a5","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":144,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"b365d8aa-61f6-4594-949e-94b931477200","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":144,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"92e04fc8-3b30-4d78-acc3-f06a6b801739","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":144,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"0d283a59-6a59-409d-9e8c-7ff16d881bb3","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":144,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"5ffa1289-f02d-4e43-a9f3-17c3a158e8fa","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":144,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"88b61f44-8ded-4037-8bc9-787f5f7f564c","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":144,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"57fd5991-b5e3-4c30-aaa1-4e74f1121295","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":144,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"f61c5b69-376b-4f30-8073-2f9c5f101b9f","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":144,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"006481e4-2608-45de-8e34-f20f01ac9b08","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":144,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"a9608f82-c712-4b61-8120-61414e6cfb06","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":144,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"e5bbbaed-3ebe-471d-b212-598a043e4a66","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"185a132a-e317-40bc-a71b-83eb9f0f0716","block_type":"box","text":"Class R Shares","page_number":144,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"5e470ccf-d9a4-4b89-8819-127f0ef20515","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":144,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"3c04ebf9-38f5-4617-a15b-6e5915f0f5bd","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":144,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"f9662692-3e69-4870-a9f0-229e15290813","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":144,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"9989fef6-bcfd-4991-a41c-b62dd7317d91","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":144,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"6a447449-3855-49a4-bace-86a969ed89d8","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":144,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"d753ae4f-e337-4c54-beab-345411204e85","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":144,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"6fa26cc8-c3d2-492c-9cda-8180a89dae01","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":144,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"1729c7ea-ed5c-424c-bcb2-f65c32d8abf9","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":144,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"927456dd-119a-4640-8e76-b52cc28cfdae","block_type":"box","text":"Class K Shares","page_number":144,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"88089c6a-c4c5-4801-bbe0-0c94ffbe32e1","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":144,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"c72a1e4f-1ec5-42ef-b3f7-f0fcecd1d68f","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":144,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"6d62dfa6-6152-4c3d-baa2-f506ce5847e3","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":144,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"3ea53d0d-f082-4f09-9334-068943dfdff1","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":144,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"b0c0c0c2-5e68-4bde-b0d6-3d13921fb0f1","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":144,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"be218e81-78fd-4e58-883c-a7c02de475c0","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":144,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"857111dd-123b-4027-b2e7-49dcd43204c7","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":144,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"4bd44877-90c6-4131-8f42-222145430ef4","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":144,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b5fd09f9-cd20-4f36-a0e8-33cb23a039a3","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":144,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"99b6561d-5b06-4270-8bcc-7fde4fccf7fc","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":144,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"870c4815-b6a2-411e-9c10-9ad2de36522c","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":144,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"01df4bed-a9cc-4455-8a05-9061a567746a","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":144,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"d3185b5f-36af-4ff3-9f75-eb88beed4967","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":144,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"10d2996a-d0c6-437c-a5c9-d0c277d24d6d","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":144,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"ab9b3136-aab6-42b7-b50a-ba3c9d437c8a","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":144,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"26c2068e-2573-417e-926a-67e61fbb66f9","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":144,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"e900b155-f91b-43e6-9474-7624fbcab1d6","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":144,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"0e6eeae3-2b4d-45e2-b4b9-10d2e457e42a","block_type":"box","text":"distribution and marketing agreement.","page_number":144,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"dbb6b7fe-36f2-4ac9-a665-a8aa839d4aaa","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":144,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"b6f0641a-343d-4829-b387-e858460bd4c1","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":144,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"28441624-d365-4dcb-9b0f-808477f2d2cd","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":144,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"05a8855e-ae5e-4b12-b5a1-8383be75b230","block_type":"box","text":"Class G Shares","page_number":144,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"80b5f735-eb9a-4969-833b-1e20ddfb812a","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":144,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"dad2ec0e-272b-42c0-9af0-77465a88c83d","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":144,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"3b69bc89-3150-4e61-b227-ef20d0d7d53d","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":144,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"0e762580-b609-425d-b5a5-326a9a5041e9","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":144,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"40f55ef3-1ac2-4b68-8fa6-98bf0463ce81","block_type":"box","text":"eligibility requirements.","page_number":144,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"f5bf12f1-b3e0-48e0-910f-b264ca3e3629","block_type":"box","text":"II-107","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d754b8e5-5cb2-494c-928b-aaf6dbd13d01","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fc81865-99d4-4adb-9970-c93688fd776b","block_type":"box","text":"Service Shares","page_number":145,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"e0dfacd3-2ea7-4480-890d-a96bc42f40c5","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":145,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"2b68308c-b593-4fc6-a180-3c9628093d55","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":145,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"d399322c-b0b7-4c67-87be-9b80d7521d6a","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":145,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"dcd32e54-8981-4a3e-b41c-5749acac8bf8","block_type":"box","text":"®","page_number":145,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"bf0ecb62-ab22-4789-afeb-83db6d428ac8","block_type":"box","text":"Fund in 1996; and","page_number":145,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"f88b3807-aea6-438d-a1e7-abe6fb94151b","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":145,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"630af934-7e34-41dc-be1f-43fe35577e56","block_type":"box","text":"SM","page_number":145,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"3d35d0d2-d0bb-4915-883d-daf7e895dbe8","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":145,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"10b1bfb3-5011-477a-8c75-a1a23cda2e1e","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":145,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"5c93389e-299c-41ba-8f4e-40406d0fe853","block_type":"box","text":"BlackRock Shares","page_number":145,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"78ffb53b-6da5-49a2-b6cb-2bcab0bf3b7b","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":145,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"0f4b3705-c837-4504-aae4-0e31c4093ea3","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":145,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"869b8e9c-7771-4540-b604-5a33b00901c1","block_type":"box","text":"fee-based programs.","page_number":145,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"6c80af6b-94da-4ca3-bf40-2065f387e898","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":145,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"d3423d9d-0f30-45f5-93c6-080a8fcfeedb","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":145,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"64e9be60-68fa-497f-8f44-711afe8e1582","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":145,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"351e0b6a-dc7a-4417-a20c-6a0291459329","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":145,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"3e1fddb7-c5c4-4642-bf91-29f50544e4e3","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":145,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"f7d5c00f-0d24-4b77-9374-0c8008344424","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":145,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"f63c8063-c3c6-4a03-acc0-a5b03e56a203","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":145,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"3e28e807-e83d-42b2-be2c-57356d6ae640","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":145,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"5a8879a2-e2ec-4fac-b628-5105a43c7285","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":145,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"a8f23e48-0b1f-4b56-917a-e0f993bad127","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":145,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"77bb3aa5-5b7b-4724-93d1-b1cf5c3ec073","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":145,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"21813ad4-824f-4463-8c5b-a873db202190","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":145,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"71d3e51f-ead2-4dc9-b415-7b9d2f83deb6","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":145,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"5a3e5376-626a-4de2-811f-033679ebed3f","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":145,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"ab0a3210-357a-4945-a997-965a3b5b9e01","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":145,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"b6ec13e2-d657-4340-a7f8-43e050133b6e","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":145,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"0f7f0213-0819-455a-a352-551069fc3ca4","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":145,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"f132e189-bd36-4315-9869-3a08a4fe2c5f","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":145,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"99369fd6-b9ce-4da9-8936-1bcf3add5bda","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":145,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"51fb52c0-595a-4edd-9916-d1a4924820e5","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":145,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"d9a83295-c7fe-4a96-86cf-cd95d6cad139","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":145,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"e626953b-a8a7-4759-a5e7-afba70ad061a","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":145,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"1e801711-0479-4bcb-be17-0a0f36a2189a","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":145,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"fce6065c-b3ce-4cb8-8010-de74747c6f7b","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":145,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"450ae900-ccbd-44dd-9bd6-e64549d72276","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":145,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"f21481f7-c4bf-4e32-8509-be5f0b77a139","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":145,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"34da95fa-e23e-4118-b788-81e83a99e7c2","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":145,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"71cf7bd0-9465-4bf9-8350-c9c542c37001","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":145,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"5108a00e-3a12-4708-b602-c5541affc2a7","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":145,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"36197cb8-40bf-470a-aa6d-1d51c45273ce","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":145,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"fecf638d-cd01-4f82-be8f-0144e62fa979","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":145,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b60163d1-6703-42d8-b0ba-e83d937c6ad7","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":145,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"5a1d91d3-ad58-459d-bb69-ddf1d9040a2a","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":145,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"5973f76b-8728-44d1-99cb-76396593bec8","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":145,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"344874b1-cf2f-4ebf-aef5-ac8209bdd3ae","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":145,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"e6601a6d-c9c6-4f26-b777-7ef33a27050a","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":145,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"e72b40ff-d80a-4989-ba45-f5f1378956d8","block_type":"box","text":"compensation for selling different classes of shares.","page_number":145,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"cf848975-3231-4c13-afe6-e30cae89d3e8","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":145,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"48e72e4f-2e3e-4ce9-8a5d-5cdf64d508bf","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":145,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"724b1464-d02d-472e-a2eb-5e8aac24f4b9","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":145,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"4631a2e7-d317-4773-aa9e-ab8308cbf8b6","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":145,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"02a1bd24-1cf6-4e7a-b261-7e0f1e5d6441","block_type":"box","text":"II-108","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d64fc813-13be-4708-9c16-ed3b05e188ff","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"924a230d-b8ea-4551-817b-8267223502d4","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":146,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"16a3e76f-7c38-4b7e-b033-a445f284db24","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":146,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"be99bf98-751e-4f61-952e-bcc0df734e02","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":146,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"c709bd21-5431-466a-b0dc-7260df464241","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":146,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"9adc3802-7de5-4f59-aac1-d08a19f00fa1","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":146,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"7e145765-2066-49ca-9531-c0d2b3f6654f","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":146,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"b24335c5-1dc2-4e04-8f63-97557521de32","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"d1cb99af-19c6-4d6a-973e-91c17cd42f62","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":146,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"ed0f72d7-7b5a-4b3e-88dc-4c4886d0e453","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":146,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"97f8f55d-928f-40fd-af8e-858a7bfab8ed","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":146,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"47049973-20e3-4c50-a44a-704b91a10492","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":146,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"2dbe2eaa-00de-4bbe-bdaa-7e71e58ad211","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":146,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"ae213da8-c9f4-4d3f-bde1-01680a72e64b","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":146,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"03bf830c-7118-4883-940a-69689806194c","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":146,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"bab4cc9d-df36-494b-bbf4-d864b0dd0a92","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":146,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"38e398a0-a3fa-4286-807f-d62b95eb8102","block_type":"box","text":"easily accessible place.","page_number":146,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"00c7e1d2-534b-41da-ae2e-7dc58b457f47","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":146,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"4519ddca-7995-4d8b-a933-cafe38c62c46","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":146,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"0f5aec25-4b21-44fc-9f17-8b8f4bc8f9be","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"5dc27cd3-6004-43da-9dcc-dd58751658e7","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":146,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"6ec483c2-dffb-464c-b81e-5517f0383398","block_type":"box","text":"fiscal year.","page_number":146,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"9f22d7f2-24e9-45c1-903f-74a577eaeba5","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":146,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"9b0e55b7-432e-4521-8aaf-81df9dacbfaf","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":146,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"45524cd7-6571-4b77-91a1-d3ee6609afa1","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":146,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"71f10781-cc42-4ae4-ab58-5258abf39272","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":146,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"21ac51db-a167-452a-937c-1325a0709d2c","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":146,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"e2988c8b-abea-4e41-b15e-41158b31b1c1","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":146,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"96faa7a3-3516-49b6-8622-30a9e5014dd9","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":146,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"a2bdeabb-84e2-4067-8bf4-a377091b3faf","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":146,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"f19ccca9-2e67-44dd-a971-ba8e996b5e64","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":146,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"15c203c1-099a-45ec-a747-f9796f0675e0","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":146,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"7410b57f-433e-499d-9600-b5060e027f57","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":146,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"26259f1c-77c7-400e-a7a4-b906f1a1d0bf","block_type":"box","text":"and Class R Shares of your Fund.","page_number":146,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"836c7dc6-4edb-488f-82bc-504319701c0d","block_type":"box","text":"Other Payments by the Fund","page_number":146,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"a71d35db-47fa-4f30-84e9-afe7ce5b576b","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":146,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"e433112d-c1a5-4b2c-af0a-5e67bcf4d60a","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":146,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"f8731d74-372f-43d1-a145-51c0434c7281","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":146,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"6914afb9-e6a2-4ac9-bb81-4f1ad8762377","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":146,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f16cb2d0-186d-4fab-a66e-59ae92bf0900","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":146,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"820c2561-6ea4-4575-ac60-1652aaf169e4","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"2d47f13a-cf77-4d1f-9405-b86459ba058b","block_type":"box","text":"of these payments may be substantial.","page_number":146,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"4ef9820b-a6fa-4b8c-a1a2-bcc4a379c971","block_type":"box","text":"Additional Payments by BlackRock","page_number":146,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"cc00f047-f3a1-45e3-84bb-714acb576575","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":146,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"9b825612-c7e6-400e-bac2-597b57cda9b9","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":146,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"11741001-477d-4bd4-8939-1f116861c78c","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":146,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"dcc3f38e-f772-4196-8a98-3cf6743c978c","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":146,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"38f0d814-1b09-4478-9c74-987912317608","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":146,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"f15919d6-8eb9-4ccb-b0ca-cbf26705a4f2","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":146,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"77684ffe-944e-429c-b013-af0770f381ec","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":146,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"0b135b65-6652-4334-a825-0dfd799ca232","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":146,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"2d4cc3c2-aaf7-4e43-83f0-cf4705c5b88c","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":146,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"772c5920-321e-489c-b74d-a07cfb50cdee","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":146,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"24907096-106f-4f7f-b731-e9cd3b47ed9b","block_type":"box","text":"II-109","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d98af4f0-789c-4c13-84db-50c522ddab8a","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1360067-b5ba-4b69-9900-819a0a031cd8","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":147,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"1e29b897-25c2-40fb-84bb-357f7ec69c90","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":147,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"95859203-2c86-4436-b0a4-b90169511946","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":147,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d9712a3c-fa24-45c5-a8b0-85a82a9e5bac","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":147,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"883b8dbe-fa14-41e3-8ab7-604fa73c3fc0","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":147,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"da2af837-56b2-4961-a098-cc02f90acc57","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":147,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"9ade4a8b-cfbb-41d9-849b-ea4e352774a8","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":147,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"af9c3a8a-b42e-48e2-b6ea-ea4c6a4425ad","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":147,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"a612b4a8-048e-4edd-a1e8-ee1105120557","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":147,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"527e64bf-64f1-4b95-bc67-800c5e3710d5","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":147,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"51bb998d-f9a6-4434-b669-e7fb447bf79f","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":147,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"92409c2d-1148-49e5-a619-21c4b4b9ec3d","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":147,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"6fe1923a-325f-4326-93c9-88f73a8e93a6","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":147,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"ebb334f2-bd2c-4a02-a918-3d55edfd5bbd","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":147,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"e5c196b2-189a-4f10-8669-27043a2715c9","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":147,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"80eb5a83-1008-48b0-8b53-073bfea55498","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":147,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"bec1deb2-839d-4701-821a-d69738a47b2d","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":147,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"82405cfa-6efd-4286-9eb7-93559932be73","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":147,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"712d351c-aae2-4fec-82de-c64ec67e5c25","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":147,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"8e3c719d-dc14-49ab-b7f0-ea7e1f7107fc","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":147,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"63f759d7-13c0-4d56-a8dd-65ae8d538299","block_type":"box","text":"Funds.","page_number":147,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"50a40fbc-2e06-46be-b2da-5312c3badcbb","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":147,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"681a117a-b3cc-4316-8443-aeb777ecafab","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. These","page_number":147,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"b5e711a8-1716-432b-b515-cd3ecced3363","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":147,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"70b618be-cfe7-4a54-9424-53beeed8dcd1","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":147,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"bb561155-fc74-4825-94d9-d7fc17a9334e","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":147,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"c07e4498-dbc6-4fb0-9e1f-76eb2c735857","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":147,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"f2c68a1b-b130-4b71-9570-47673a8c5d63","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":147,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"0ef6c5ef-68ad-42e5-9fdf-f443f640b974","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in certain sales","page_number":147,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"386a952f-bff6-42e8-8a69-367ad35d0cea","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":147,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"53380b40-e74f-461f-8937-5c265048512b","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":147,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"ae4ca19c-b41c-409a-adbf-4b5c7223e5af","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":147,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"7fcc3b3d-e7e7-4ea6-8b64-1e1544617f9d","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure support. These payments","page_number":147,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"3b8d9efa-7f88-42ec-8ecb-340e7c7fb474","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":147,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"ee1ccb93-d6f7-49e2-909d-87d77645280d","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":147,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"00f97015-306a-4739-8891-1a30717a8ef9","block_type":"box","text":"B. Shareholder Services","page_number":147,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"3fb37ac8-3db2-47e0-b5c3-f7d258e94b37","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":147,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"34bded49-5cfa-4065-8b66-36cd5ffa41eb","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may perform","page_number":147,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"6d95fea9-429f-4d5e-adfb-d1259f164e13","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have performed if the accounts","page_number":147,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"3487882b-604f-4b02-8b43-237cc507fe94","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":147,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"6c597095-d241-4330-9ef3-19a4c997bc15","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":147,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"5bc264c6-877b-4ad8-b304-5dbaef6a1868","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":147,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"f26f6805-2029-49b9-b73b-8dc126cfee53","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":147,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"5a6ed854-2f76-45aa-824e-a297e0d7c3fd","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":147,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"0855d19e-5f97-4cb3-a370-13a7042eb105","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":147,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"e71f5962-1b76-43b4-9987-cca8ead119b6","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":147,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"c323e6a8-ab33-49c1-87ee-bae8993272c9","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of certain analytical or other","page_number":147,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"a0cc09f4-375e-4d19-acda-398ee0b175fe","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":147,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"5a158fa3-5571-4dfc-974a-ab61a6fb52a1","block_type":"box","text":"support. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":147,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"e8b4270d-55ea-4f21-9b38-0c159661253e","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":147,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"eefcc5d6-c59e-495b-8725-b04ebfcdb0d3","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":147,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"cf88346c-0924-45f5-9e98-2248224468d9","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":147,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"fae02652-b632-4308-a34c-bb24bb1ec3ac","block_type":"box","text":"II-110","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e6415e3-4342-4385-9f96-925fd029edb3","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fd3da0e-8325-4c9a-bd21-9a39def93bae","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":148,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"b573e3be-160d-406f-abee-4f156080c1db","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":148,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"a8ac1f20-9cf6-4243-90cb-f437038bd740","block_type":"box","text":"payments and to obtain further information regarding any such payments.","page_number":148,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"b678d31a-ea21-4753-b121-4ed9e0396e2b","block_type":"box","text":"&Partners","page_number":148,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"32321fad-567e-40eb-a28b-73edb3c57cc7","block_type":"box","text":"AccuTech Systems Corporation","page_number":148,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"77eba4c6-607c-4400-9bb5-695e0ec67aea","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":148,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"9c0bb731-4642-4ece-ada8-e30870c6cbd0","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":148,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"9897e45e-8d78-4f1e-b6f1-2077d4746d80","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":152,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"aaced5f4-00de-44a8-b3e9-94a8d7cde4d9","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":152,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"6387fdb5-c263-45be-b992-b05399304dee","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":152,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"6b003347-f580-4489-aecc-faa91b3b15bb","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":152,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"2be04e42-958b-46c6-a1f3-c3d80f46a55f","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"b2f96385-d699-498a-8324-b1e04facc73b","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"1222a35c-e6e8-4e51-a0e1-365fbfa4d947","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":152,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"25ec0c76-94f8-4d90-85b8-5cdb3233742b","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":152,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"3341e2c1-d740-44c7-bc8a-6acc6dda0e80","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":152,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"74065cab-6e09-484e-8e59-045414a86a33","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":152,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"8bbea874-777f-4b05-8e01-a449b9f12868","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":152,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"dc1daabb-56ed-45f7-9674-5ed352b2daf6","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":152,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"ef3e843b-0d60-41ad-b426-df99c53f2764","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":152,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"4d0081ca-c9b3-4a7d-af2f-501bc81bb9f4","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":152,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"6d31a8f7-ab70-4331-a688-18075b545c6e","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":152,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"cdbc1862-d351-467c-ab02-376b88f83c6c","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"614beb46-1480-4ce3-bbd6-28eeb396288f","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":152,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"97a16899-3f7b-407f-a0bd-dde1efafc59e","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":152,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"091a864e-f74e-423e-8d13-4df4ea7227c7","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":152,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"b6ce9205-5e3a-47fa-ba2c-0adfd219c9af","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":152,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"98a9e12f-ece4-4fd8-a455-12569d033f1f","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":152,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"7f356ef4-c549-45fb-a36a-4fc01812f1d2","block_type":"box","text":"Redemption","page_number":152,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"7804be24-e093-4a97-8a9d-cc31450f1769","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":152,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"c3884032-25b2-44f8-91f0-4b5f63d7d9ae","block_type":"box","text":"Redeem by Telephone:","page_number":152,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"a6c46a65-4ed4-4d14-bfa0-9ed5c14acce9","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":152,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"566b1826-df1b-45a8-b7ac-8069139ff313","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":152,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"edebbe0b-5806-42f6-9232-6495a5c53aa1","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":152,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"89faf315-73c1-41d0-8e75-33b71bdc1203","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":152,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"210b7115-945d-4fdf-96bc-d606c0795ada","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":152,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"a1b741fc-5b05-4e58-b730-a28e6efba58d","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":152,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"012580ae-248b-45d6-aad7-ea33ef703a10","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":152,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"9ad52c4c-6fe9-4626-a936-d41c44294f1a","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":152,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"901a57ca-264f-4023-b31c-ff25b7b12701","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":152,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"35e33872-e285-425c-9cb9-66df62d53576","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":152,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"34185f35-28bf-47b3-95f7-c24f1652ca44","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":152,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"0542c5e8-1c67-4b44-b809-58ad9ddd63ea","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":152,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"e65a29bd-2cb5-4962-b36b-89dda2a499d5","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":152,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"4078452c-383f-4afc-8473-b4d34ebcfdeb","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":152,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"700c1911-84f7-40ee-a709-584de00577c8","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":152,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"672f8bb9-5cf8-4a95-93e6-f01f24104cb5","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":152,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"42bf2eb9-548e-4b0a-a473-1322a8a8dff4","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":152,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"2d28ba1a-649e-4d28-b3d8-eb3488d483f7","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":152,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"2d7890af-d348-49e3-aadb-fff59351ae97","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":152,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"8568753c-2b23-4b95-846d-ca8168b8da16","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":152,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"b4bff957-1b14-42d2-883f-514ace6d5902","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":152,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"3c4cb44c-c721-4290-969e-2e9c78b63b28","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":152,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"29c4af06-6d58-4713-8ec0-1918863fff0e","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":152,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"a31d0b17-a5aa-4b95-afca-55402e8cef90","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":152,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e695b6f3-5a0f-4fb5-a39f-56f9606f4c7e","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":152,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"4d681e18-8187-42b6-9dd0-2ec2a5b79c64","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":152,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"02ecb655-05b7-4cc5-b842-2c8bfbce55eb","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":152,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"0e50c280-9634-4704-bcd0-9e0970d89385","block_type":"box","text":"II-115","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"82409456-c718-4cc6-aff5-cfbfaaf56c6b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6526a24f-86a3-48e1-b349-db56b38e86fe","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":153,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"70080a28-1cdf-4c01-a76c-f8daef57ad9d","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":153,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"62198404-7e27-4b78-984f-2db438f74be1","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":153,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"80ee3933-1e67-490f-b452-af470a1e8b7e","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":153,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"fa6e3589-ab12-4290-a328-bf9d95059973","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":153,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"1733500f-6cac-47b0-9c62-a5b744ae0feb","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":153,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"d9eef29d-3ecb-4070-bdd6-e28a0acd3311","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":153,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"366e5ad2-040c-4a3d-93c9-0a53ac634494","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":153,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"f068ad41-1b17-45ea-9a71-267a3172cacc","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":153,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"a6471912-84bb-478f-a179-543cc483633d","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":153,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"e08afcd5-ba02-4abf-8211-bc78ac4a9749","block_type":"box","text":"Redeem by VRU:","page_number":153,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"1a87487e-1ca0-49c1-954a-ad1876f82d22","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":153,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"06cbc733-4e32-412d-8602-b78161b7c525","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":153,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"08463a85-b874-4537-b1fc-3c434261f8ec","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":153,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"56698583-852c-4238-b52d-1b65b2b9b908","block_type":"box","text":"Redeem by Internet:","page_number":153,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"1efac263-77d4-48ea-a928-dff48914878f","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":153,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"3623e883-ecd0-4b71-9000-9a969098419a","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":153,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"12455ece-50fc-4b1a-a87e-5bf8372baa58","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":153,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"4b1f005f-5194-4254-9e03-fa7c260161a2","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":153,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"f7c4a02a-5862-4e82-b743-5088af1847b2","block_type":"box","text":"institutional investors.","page_number":153,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"9c063798-4ea8-4cef-9d01-0f7ca1e2d486","block_type":"box","text":"Redeem in Writing:","page_number":153,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"c3dc5388-49b1-4104-b109-4f9a6c2fdce8","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":153,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"e7ff72e0-f496-4e88-9ea6-0e0437969124","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":153,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"3363d667-adf8-4e60-b9c3-e50905fa14e4","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":153,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"0543a427-a457-4fbb-b320-086d4a222aed","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":153,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"e77f87fc-5196-437f-a1d8-ef1e8002d504","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":153,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"3257a5a4-fcdb-45c0-8352-5ee729516ece","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":153,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"9ced1411-0e5c-439a-beee-6118d00aafda","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":153,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"b8d8df5b-5556-459e-a728-12b2dedb88a9","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":153,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"3b4703b9-adcc-4857-8805-a58e3d35dd6b","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":153,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"c192f7b2-4593-49a2-9432-c2644d934874","block_type":"box","text":"or wire to the bank account of record.","page_number":153,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"e2907d13-b27c-46c1-9bc8-d830fd71eae2","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":153,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"b70319a0-c627-478d-8d9b-c82cfa37c4cd","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":153,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"4b27f0ad-5086-4581-ab13-3917bb156f00","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":153,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"64d17d15-18bd-4cc0-8adc-5e32bd581933","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":153,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"d3ebbd44-5059-41a4-9d6d-1f3abb87160e","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":153,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"d6099524-3ed3-4d9a-a5fb-f79c5ac00c87","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":153,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"e0c0015c-3c53-4e36-9c35-69ae79959401","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":153,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"b86920bc-a280-4acb-81dc-1127f628ca06","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":153,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"28cee594-e589-46dc-a283-33de4b152af4","block_type":"box","text":"redeemed by the Fund.","page_number":153,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"c2e8f8c9-115b-40ee-89a5-7edacd9e854e","block_type":"box","text":"Note on Low Balance Accounts.","page_number":153,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"f4122fa9-4644-4a33-b82a-28ddff99d425","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":153,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"5f583df0-039d-4810-8850-6f877747ba0e","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":153,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"7bd84307-99c1-41fc-a815-77408d39f1f4","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":153,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"dd8fa8c5-4b17-453a-adc4-a55d30bd0878","block_type":"box","text":"for any reason, including market fluctuation.","page_number":153,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"1c22d4ab-5dd4-4948-a4ff-ef9d87bb2266","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":153,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"77f3fb26-d6a4-4e23-a4e4-6c34092781a5","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":153,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"a8076110-5d38-4963-9438-0508dea69aeb","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":153,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"531c428e-b6a2-4f15-8602-aa2fe9015122","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":153,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"e0298c89-c1f5-4fec-8ec3-4193beaccdf2","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":153,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"637992cf-9324-412e-914b-69d9230416f9","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":153,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"77af4149-dc2f-4489-b8c8-6b57df6c0afd","block_type":"box","text":"Redemptions in Kind:","page_number":153,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"7e32721f-e45f-4cb7-878e-1c5b83933554","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":153,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"3d2ce9bb-aa1e-43fd-81b4-e85fc60970bc","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":153,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"07dc6380-92f4-4246-9086-453bce586646","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":153,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"3f9683ef-28dd-4624-8ee1-2f7b89a6e557","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":153,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"27419353-98f5-48f4-9b51-a1d293eed085","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":153,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"e845640b-6260-4be7-8a7a-d443d603e471","block_type":"box","text":"II-116","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f058e07f-c08c-4510-bd72-6e1242adce65","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aad1e0b2-e506-4434-b13b-bb8ba496cbda","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":154,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"218a9c88-02a8-480a-8081-ca4260c948cb","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":154,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"ae6d5d39-c32d-436d-9258-aa17e4533cd7","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":154,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"e8efa6f6-89d1-4623-8c17-263fc2797ce3","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":154,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"2b126f36-b34c-42aa-b193-b72435f0642c","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":154,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"462c7765-e7fe-489f-aed3-27aeae401d1a","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":154,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"3034c750-cf81-49a6-95b2-ff2a91c9f08f","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":154,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"f7495c99-8202-43cd-8e86-6cd54e3c577b","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":154,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"7b45115e-211f-49ce-8368-94400eb01bf2","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":154,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"73d405b4-37d7-4dc9-8713-66954b74cd9e","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":154,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"a3625b89-7673-4c28-80e1-10373f19149d","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":154,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"b873b931-63b2-4539-a282-2ec25880c718","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":154,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"1b8a3828-5f25-4edd-97ac-907469b1f650","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":154,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"23892ade-6ac2-403a-96b7-b19f60495970","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":154,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"f18222b8-2c21-455d-a917-581e1b2cca29","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":154,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"01267d63-4fd0-4b98-a48d-964b61c3c869","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":154,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"52e4f761-32b8-431c-81de-6d6806c7f56d","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":154,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"baeb1a74-ed77-4386-bf34-ac53c42c4c59","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":154,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"4eecc4d2-b6a9-4ca8-9dc4-64260959104e","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":154,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"71d9c55f-9fb0-48a5-8bce-d47edb04eff3","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":154,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"ce2edabb-bb91-469f-a1c4-7dc98d82be18","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":154,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"236f6b8d-3157-4406-b182-d0ea6dbf2c93","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":154,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"915e05c5-7aa6-4845-8070-1be1185c10cd","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":154,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"804201ef-1ac7-49cc-9c82-ce6da760c20e","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":154,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"e61b5bf3-4faf-42c4-8aa1-aa2760d8292a","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":154,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"0ee2bedb-14bb-4bc1-af63-97134f6bab8d","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":154,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"fe8e2a75-efb4-49db-b9bc-e2fd5b1cbd10","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":154,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"d3439792-5487-4860-a686-0b0ba8039044","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":154,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"356f3791-8402-4793-b0c3-fb629cca73a8","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":154,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"d8597b14-77df-4ce5-8980-b5041b862988","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":154,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"a033cff5-e815-4c63-89e3-40fb55e3fa81","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":154,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"9d4546b2-6ac1-4af5-a07b-48f1b628e639","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":154,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"8637871a-ec5c-4aab-b3bb-2079f2bccd34","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":154,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"d4b2a7ba-4425-4bfd-9054-8098f4a4c8f4","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":154,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"08a0da7a-ebb2-4e38-a16a-4a8595da6e86","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":154,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"1a82cbf9-0038-4aa1-9bc0-244290965ab9","block_type":"box","text":"Repurchase","page_number":154,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"a27ce78e-ae96-4ea5-b871-b0a6a4732153","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":154,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"56adc90c-109f-4825-9689-752adfa9db52","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":154,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"0416fc70-3284-4437-a1b3-8590d84f9d56","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":154,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"28b0dc9f-479b-443f-a98a-011a84b9d1f4","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":154,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"6cbfd401-01bf-4970-800d-a19b21195f95","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":154,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"4baac9e9-1ef8-48f9-91f4-4cd2dc580fa6","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":154,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"9e3a2c47-5e9b-4465-8187-48cbb01c6a7e","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":154,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"e8f0b190-2d97-4743-b3b9-7523b5b41fab","block_type":"box","text":"next business day.","page_number":154,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"c3eaa47f-5a2d-4fbc-b3e0-676afaab6055","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":154,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"be907ac5-ca9f-467b-81cf-3212c7cefd26","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":154,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"de98c2bc-9f2a-4c59-8d18-1fafc1237156","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"bbbfdf2a-9996-4995-abdc-6d71aa5c6b5e","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"c41e86c2-55bf-48c5-a5ec-0f20e720c7ed","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":154,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"974e1bfd-81d1-4a17-9142-ce81b1314c50","block_type":"box","text":"redeem shares as set out above.","page_number":154,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"5ae8be63-0d7c-42d3-9365-e10480a7a7fc","block_type":"box","text":"II-117","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"88a01edc-d2d7-42aa-984e-e89e5045f6cb","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2396c258-0cf7-4539-b0bb-9abd4151e5a1","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":155,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"a1957374-5b21-4c8f-be3e-945912a0ddbc","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":155,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"9220be39-9bba-42ab-b343-739265317607","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":155,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"c40973d9-257a-4c42-aa3d-e2c04c973e99","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":155,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"587bc5f1-315f-45c7-bd7c-1289b29850e6","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":155,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"5fd89b64-3493-463d-bae3-fc458b58b00a","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":155,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"10143494-80e8-4647-ac55-ffdbcb3576af","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":155,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"51705ec5-7868-471f-82a2-aba3873dcdc2","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":155,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"c8ef6488-c999-4a4a-9ff8-c23daf6d6dc5","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":155,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"133a619c-60e9-466a-b066-90022084dc2b","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":155,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"1dbe21d2-1c45-4253-b93c-7a140856d25a","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":155,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"3388160d-d76a-4e78-a9ba-292e71ac8d9b","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":155,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"39d8093e-351c-4d9e-a3ab-50526fccc9c7","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":155,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"13236cb1-9014-43c7-9126-e88daa38c0a6","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":155,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"506cc090-5a7c-439f-8ad9-b56f572e14d0","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":155,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"d6f8e1c8-970a-456b-9bc0-3b9edffcc49f","block_type":"box","text":"Investment Account","page_number":155,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"9891def8-a8b0-4a86-a47f-7e4775435cb9","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":155,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"1969011b-3521-4c10-9f08-db9d2a835813","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":155,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"994289f3-3b3e-4508-92f8-2b3aab0e6bac","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":155,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"085b0260-5955-444a-a9ce-58d223a71bd9","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":155,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"d315fdd6-d6d3-431e-8381-02a7088297b4","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":155,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"f9ee58e6-73c9-41f0-8bd8-6993b471dca7","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":155,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"649e19c7-f5ba-4484-83c1-7f4eb9a3ea40","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":155,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"ca6d50f7-f54c-4dff-a9c0-fb6067077cdf","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":155,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"7993c2e4-6bf6-4e39-b14d-560d53a639c8","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":155,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"ae7d3a0f-fd35-4418-9ce3-5a189eb7693f","block_type":"box","text":"automatically at the Transfer Agent.","page_number":155,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"8935438e-e78a-4208-8d2f-a4b305dfbe90","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":155,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"42c05eae-4c17-406d-9b96-d094bfa9c521","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":155,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"b40dc471-358b-484b-b538-6685054659d2","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":155,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"36025cdf-d39e-4a74-bf6a-4a4da581a2fb","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":155,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"6fea3903-18fd-4dae-baa0-977929c32cb8","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":155,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"14d26793-74c0-4a1a-8a0f-0267bea0a98f","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":155,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"f58566b3-36e1-4d31-af63-2bfe528fbc26","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":155,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"eadf8dcc-a476-4413-842d-02c1310a2f80","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":155,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"7acba6b9-7c8d-47dc-9bd2-f4e3096c5ee2","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":155,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"c5fead25-c290-4e8e-b9dd-a810c68b2bf6","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":155,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"b2cc7752-4ed0-4325-ab6a-c5e59cf70d69","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":155,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"2761b940-a524-4bea-924a-58d923df9b9b","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":155,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"5fc3aca6-d27a-4039-9593-1d37615b5526","block_type":"box","text":"issued.","page_number":155,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"36a08183-6332-4c04-bb2d-656eaa91fc56","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":155,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"b8788323-5663-4c15-9565-4273527a8f39","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":155,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"e3979419-011f-4328-b318-3649d613d77e","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":155,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"e0d2da73-6ad2-4878-8122-9c9d3791a924","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":155,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"42dcbf15-48d0-4cea-a1af-bf73d4229f47","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":155,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"bdcc2b34-9a0b-406e-9700-b1b41852d78b","block_type":"box","text":"Exchange Privilege","page_number":155,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"1a065983-88b2-4691-af17-cc42f0d010ab","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":155,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"c94310ea-4a3f-46cb-9a50-31bac3c3b045","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":155,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"275d4653-e827-4e94-bf0d-8c983b4e8483","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":155,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"e341604a-eb01-42d2-884a-b6e4e67265d8","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":155,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"4de871e4-d8de-4bc8-893c-84c8c0bead63","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":155,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"2f835ff7-ca79-467a-bef8-fdc940c6b1d4","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":155,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"03531b34-e8da-4b1d-8a9b-b4f91b941118","block_type":"box","text":"II-118","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3dae803a-4358-42cb-9200-9ef699e7c1d8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22b05078-e632-4207-89a5-24d45c2f2953","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":156,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"3ee8ed98-3a7e-4fdd-a264-59462e85a3d0","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":156,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"5584455d-cfe3-49f4-b4e3-fd7f7c27a404","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":156,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"a738691b-dacb-4e10-83e2-465375151aa6","block_type":"box","text":"Institutional Shares","page_number":156,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"8b6817a7-1280-4123-939f-531810e2984d","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":156,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"5c616892-5a0c-4670-9689-891e409b6904","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":156,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"e25a68d9-daa1-4c9a-80ad-e184f1cafa0d","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":156,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"b9198f60-78a2-4a75-8405-043b403deb0d","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":156,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"f8872cfa-e9cd-4469-9ec2-e34bed053944","block_type":"box","text":"for Class G Shares of other Funds.","page_number":156,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"9d6a9a5b-f300-4ded-be9b-4df0efc18309","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":156,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"f03d8a69-3042-4a66-851c-aa1939697a7b","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":156,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"05dacbf0-a8d5-4d9a-8afa-a375cd3eeb3f","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":156,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"562e32f8-ebc4-4e2f-9139-fa5092ccb13b","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":156,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"88244f7e-0048-45ba-89e3-3372b18776f1","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":156,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"eb9579a0-f5a4-441b-bf8c-6f1fec99222e","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":156,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"437ba56b-9379-4a0f-b772-3772c91b4485","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":156,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"221101a9-ac83-47ec-99dd-48cdf6aacb62","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":156,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"b408e2ab-f0b2-4acf-b624-cc556081895e","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":156,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"ae52d8c0-72e1-41cd-8ac3-bcbe1509ea1a","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":156,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"8fc86948-f621-4eda-af54-3d4f6549f912","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"4979b307-72d8-4e72-8edf-8503c75c5ad1","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":156,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"cc9e7b10-2414-43dd-a032-09cae58e0ff2","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":156,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"b39bc3e0-7513-4d7c-bb37-d2f1d5d5a42c","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":156,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"a16fa432-8517-40b5-955c-8fe031750691","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":156,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"b7d2b3f2-ac2d-4198-bd62-3dd1d7385661","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":156,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"4df6bc37-0ae2-4268-aed8-b0530b312c7e","block_type":"box","text":"Exchanges of Service Shares.","page_number":156,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"42b8c10f-e244-43af-8954-3c9dff6fafd1","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":156,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"f5ccda48-092d-4f4b-bda0-de66c41e9a3b","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":156,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"abd6df6a-8011-4a72-9901-a13c62eb8439","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":156,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"bd969697-cc94-4c10-b08f-612af38bd8f1","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":156,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"d26255e6-aa9f-43a3-9d62-e0007a70e706","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":156,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"67daaad5-e08e-4f47-9658-91a85b531c2f","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":156,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"d556d4a4-3001-4e01-91c4-bd73e697f3f9","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":156,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"33013eb4-fc67-475f-b225-290b9f2f4782","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":156,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"35f30e4c-1292-40a6-988c-478c744db927","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":156,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"8b73bcff-a93d-48dd-b562-36e6cf9c607a","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":156,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"03f2a4ed-1552-4634-be6e-ca389d1e6d71","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":156,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"fdc2975d-f9c9-48b2-aa5b-80e0930a4d44","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":156,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"28fdcdc5-af45-4929-8467-5ffe5a14d083","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":156,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"e2183651-c2d7-45d1-8e87-e7d29ed79c4b","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":156,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"2645fb47-e4f4-484e-9536-a8ff7518da9a","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":156,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"8e09c728-acb8-4aae-b33b-e8b8c8bb4705","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":156,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"1c265021-461a-4250-8234-21abecf5abac","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":156,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"0d2e5f1d-1930-4689-8ab8-bb2d13a9f1dc","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":156,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"5a533728-c0ca-4cf2-8115-247577aab7f0","block_type":"box","text":"exchange.","page_number":156,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"7e695183-311a-42e6-a749-70bffca4b9e5","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":156,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"22fbf5e7-3448-4b15-88ef-4b07251d11c6","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":156,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"f350747c-fd48-443d-82ca-04e60c70298d","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":156,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"3b869eec-c1c6-4cdb-99a7-f0ef98e89d0e","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":156,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"482d0924-3ff5-4adb-a332-ceb6eb5c3c76","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":156,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"e741af94-97c3-402b-981b-6dcd59ef76b1","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":156,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"3c4f8ea0-9b16-4bd3-85ac-bba9870fe74f","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":156,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"992df7fa-c890-47aa-b22a-b3be081c12ed","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":156,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"6e74d8bd-8fa3-494a-927c-44197cd18926","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":156,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"cc5cb44c-17da-4599-9c03-17cc8f071944","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":156,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"5fd0fe44-2379-43a5-b252-6acbb62676f1","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":156,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"6622cda6-a82b-4d7d-b964-74fa0c06d950","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":156,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"e9b26314-6864-464f-975d-7d20649f7c58","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":156,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"1055be9f-c52d-46cb-a70c-3dde73a77705","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":156,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"c0cc2726-fdd5-4dc6-bd65-f036bc4024ac","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"bdc23ed6-cc31-4a3b-b880-55efabc7a5f7","block_type":"box","text":"II-119","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f7520207-5d32-4bac-81e3-54d9cdd6d284","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90e5b474-a10a-4384-9d16-3982891dbf4c","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":157,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"4a4fe9dd-af5e-4c24-bbd0-1995150ae428","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":157,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"10945c3a-848f-46fc-816b-4703216d7bad","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":157,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"63b2d20d-cff1-4640-8d20-2a5059288369","block_type":"box","text":"Transfer Agent in writing.","page_number":157,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"65443ffe-e2b9-4b87-bfb7-edca5a160508","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"27497c52-63cf-452d-9d43-41ebe5f6c077","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":157,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"9d3c8ab3-a14c-47af-9002-3b73b2f9c3ab","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":157,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"e69dcc34-2d30-4980-b914-0e91d8d9c2c8","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":157,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"f5b987bc-a3a5-46a9-9938-e7022f0e47d9","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":157,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"8cc7033f-38b3-4ed6-b3a1-c061230b9f07","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":157,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"9d97e50b-d6ef-4774-80d0-df95eeea4777","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":157,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"abdce0e5-4eff-4e3a-bbff-6c6ecfc10a20","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":157,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"b7f69818-131c-475b-834e-c185996eca6b","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":157,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"6eabec9f-3bbc-4a47-b29b-e5a7bb108ca3","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":157,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"4a19b871-8f37-4a4e-9d7f-a26773f1bb41","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":157,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"50fce8ac-3b98-4006-a511-13686a28c2d4","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":157,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"e7962025-d886-4580-9fbf-3247ed7c5095","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":157,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"737a8dcf-9fb3-4427-8032-b174cfc764d9","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":157,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"83fb0f2d-21ff-4f73-b126-e281a9379263","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":157,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"224f528e-e324-4961-b66d-9088fa9309fc","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":157,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"4a022f06-e348-4407-857a-f69900d979ba","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":157,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"4e2b4052-3d79-46e3-9b95-32d2a42a7e8e","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":157,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"4737800d-2c65-4c9a-b4f4-2e434fe93aa9","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":157,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"4162b3e3-44bf-435e-a9fa-804a36614310","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":157,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"1291a4b3-0ad3-45a9-a4f2-e8fef59d8e06","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":157,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"40ce0f46-b9d1-4023-b852-0e3e709b9a3e","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":157,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"c5a6ddd1-50c6-46c3-be6d-942edaf6b2d2","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":157,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"5dc3b362-da6c-47f0-9f29-06760469ad19","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":157,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"2257632f-c823-4740-88e8-240cb9863df6","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":157,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"8512f69f-7ab1-4490-a15d-9cfc35f8b017","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":157,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"d2eeff42-9eeb-4f3e-804e-b766a04223e3","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":157,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"7242774b-e0a8-4280-bae6-04b055d16951","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":157,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"03a23341-dd50-46b8-8df1-8ec612c5eef6","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":157,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"f60ed52b-d61f-4cf6-9d19-b6a5a6e2a6c0","block_type":"box","text":"may be distributed by the Distributor.","page_number":157,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"d53511d2-d9c6-4b1b-9cea-dbb254d39287","block_type":"box","text":"Participation in Fee-Based Programs","page_number":157,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"7f6c0a7e-51d1-4d28-83d2-63ade2833fc1","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":157,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"0e7e2953-0b96-44ac-af63-d8cfb83233d0","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":157,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"a18cbf25-bad4-4bf1-98fd-4cd650fd439d","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":157,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"828c69fe-3de2-49bf-91e0-53575cda6372","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":157,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"54d89341-e3fe-433a-b4f9-a8437442863e","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":157,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"ea5c678c-b2f2-47e7-a8db-47e2c76bfc90","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":157,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"20bfb6b7-a329-4e1b-bcd7-cd603c9ba602","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":157,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"7f051e5e-72c4-4467-b5ff-ee53f325ed24","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":157,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"24bfb0dd-8e76-47a0-b85b-471c265cfad5","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":157,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"348ceb9d-2639-4716-9934-d044ab87c334","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":157,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"8e54d2fc-4116-4195-8789-fcfb945f661a","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":157,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"dcd02349-ad0f-4b37-acfa-bee71d35cc7c","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":157,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"85ef04a1-8c4d-4f89-a22f-b56ed5a52a55","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":157,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"a60ac921-8750-4d6c-9ec4-065e38fa9909","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":157,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"9c6d9094-4d1d-4c37-942e-d5098999f874","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":157,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"75bc427b-c922-41f5-9899-5c5374d5e378","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":157,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"a1ae3215-8d4b-46f3-bab7-db44619a80b5","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":157,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"1ef0c06b-dde4-4e5c-80ea-ed30e584242e","block_type":"box","text":"II-120","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"981e3f41-9087-42b8-8104-2af489e2cb4c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b47b84c-fb1a-4b6b-863d-593138c7f1de","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":158,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"ec891aa3-0742-45b6-8730-25c1f0ac9746","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":158,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"ebbcda41-c1ad-4d77-bffe-05356881ecb0","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":158,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"cd388359-1441-444a-8339-302e4ef057c0","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":158,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"2940d1ee-905e-456a-af7d-c98d9ec5954d","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":158,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"11d64018-1c5d-4ffc-84a0-b0ad660433d4","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":158,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"9a17a499-e7ec-456a-81be-6fd95a89870a","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":158,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"561884a5-cfb3-4f18-b783-4b32300c9164","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":158,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"54bdfb83-d4d0-4285-8082-daf2ce460a95","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":158,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7352d106-dcfe-4bd7-a8df-2de6c5e9c90f","block_type":"box","text":"information.","page_number":158,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"174f5766-fc68-44b4-9baf-2829a33e04da","block_type":"box","text":"Retirement and Education Savings Plans","page_number":158,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"75e2ca63-7b0b-44fa-8706-47463f920a6f","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":158,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"6088d5d2-220b-4dd3-96db-aa9371f8f2a9","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":158,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"d66d2bbd-485b-4e6a-8e56-92966c54f7e8","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":158,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"d96af3e8-2624-4cce-9c4e-c71e1b5b9bb7","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":158,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"7e9065f8-39eb-402a-8f45-b67b315d888f","block_type":"box","text":"your financial intermediary.","page_number":158,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"613eba66-0576-4180-9e3b-f72fc9d1a3b7","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":158,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"4f017e15-6e11-441f-a86d-555b15ca4ce2","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":158,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"ca879d44-c0a5-4150-9666-f4a5c059acb9","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":158,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"d9da2a46-e202-47c2-85ad-7a8c615c72b3","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":158,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"70a296e1-44b7-45b0-b0a5-4417491187b6","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":158,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"a5f42d8b-0b8e-41bb-980c-762f8b837d81","block_type":"box","text":"Automatic Investment Plans","page_number":158,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"4fbce64f-dc3c-4a00-909d-cbed15576a9f","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":158,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"de8012a4-3a4c-4fbd-b3ed-20ce87675ec2","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":158,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"d1a0e10c-0834-45d2-8c5f-9386a526eaea","block_type":"box","text":"®","page_number":158,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"241793c1-6a43-4e01-8191-3ae8376b7ec2","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":158,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"9df184d0-a6d1-43a3-bf92-1ac29ce8e6d3","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":158,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"b5add794-6e52-49bb-ad20-54146f0d82e0","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":158,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"211dfada-9f09-40f0-94e3-8c87b17b410f","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":158,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"4ff02752-dd80-4146-8327-530229838715","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":158,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"12e4218e-d56c-4e89-af90-edc810a66b6d","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":158,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"8822b511-68ec-49e9-ada4-084b00485c09","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":158,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"b2b37ba2-af28-4856-9132-db4f67b57940","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":158,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"bd413995-8d71-44f2-bcaa-d143cec5b875","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":158,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"91528337-76bb-46ca-8fc0-b0cf4451711c","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":158,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"c519fa18-1d39-46c2-9da9-a4ca9e5a84f1","block_type":"box","text":"Systematic Withdrawal Plans","page_number":158,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"097c0006-817c-44f2-9acb-bc08e7b36df2","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":158,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"a355ab21-bf23-4161-9bdb-8c6f0b777d68","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":158,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"f351315c-ca74-4eb2-83a1-cd52354b3f2a","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":158,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"9aa2d1ee-18f1-4a3c-aff6-3c23491e7ec4","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":158,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"945ba198-008f-4fbd-ad35-6c9693190c96","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":158,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"ea829097-74a5-432e-9d1c-762bd15ca059","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":158,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"64017f8b-9218-4321-b7b0-3c74b7a1f8dc","block_type":"box","text":"www.blackrock.com.","page_number":158,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"a8332b41-1488-4e22-ac89-08394c117dc6","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":158,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"33982145-60f9-45db-be63-5c64ab8a97d7","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":158,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"2e622f70-dd27-46ef-8cb3-9c3ec325708f","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":158,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"599098d9-1a6f-4993-8018-ccec924dd63f","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":158,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"87362c44-4322-4564-9e81-689c387321ce","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":158,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"14719ecd-aaad-4f7b-aa27-9914a30f773c","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":158,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"71ab54a5-541c-4d25-9bb0-4b0bd85c9fc1","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":158,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"87b4fb6f-2eaf-4e7d-8f78-91a8c04c99c3","block_type":"box","text":"II-121","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6478d7c2-5806-462f-aceb-e79335710f43","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05f3b5dd-53e4-423c-9d13-26e3f2253e98","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":159,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"fb6813c2-fc76-47e7-9a3a-fa2158a7e66e","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":159,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"b2f595ca-85b6-4b5d-9d5b-7f17429f76b0","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":159,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"42d913b8-7315-476d-b2dd-e836d72453d8","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":159,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"1529f0d2-6000-4437-9376-cb16598a5c53","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":159,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"d421c3cd-1800-4f26-ac4b-65efefa149b6","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":159,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"0cc8f2d1-a6a9-4e6d-9a67-8387dc3f1cc5","block_type":"box","text":"Dividend Allocation Plan","page_number":159,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"a268da11-a8d8-4e2f-b509-1ac648335c97","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":159,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"a14e7f5a-42e1-442f-9b31-eebf585de353","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":159,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"667bc71c-d997-4012-a95a-715bb7f7b3e2","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":159,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"5ef77b44-0861-4fff-9b36-26bade9332b4","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":159,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"87750d5a-ed8a-4c77-b87b-1f0be42a8213","block_type":"box","text":"PRICING OF SHARES","page_number":159,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"ac3f55f4-223e-40db-99fc-76c33fcd315b","block_type":"box","text":"Determination of Net Asset Value","page_number":159,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"3dcb957b-d520-4e0d-8fd7-ce2d4465bdb4","block_type":"box","text":"Valuation of Shares.","page_number":159,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"4c0edea4-6376-4710-8c48-ad326a4d5a5f","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":159,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"ce3ca553-938c-41d9-bb73-d9bb75515003","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":159,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"ea59b764-dd18-47da-ab6a-a9c6df58ac2e","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":159,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"bbf4c189-2b66-437c-ab9e-ed13616095b2","block_type":"box","text":"Equity Investments.","page_number":159,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"e10be755-3895-4f6c-b6be-3b41b5b3c17c","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":159,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"aeab19a2-1eb2-49d0-ad10-6b8eb55305cc","block_type":"box","text":"e.g.","page_number":159,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"b6fa018d-1863-4b5c-a5c9-ffa9546a78dc","block_type":"box","text":", NYSE), on separate","page_number":159,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"87ac8ff2-04fb-4374-8769-8e797d9f2062","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":159,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"7ebe38fa-cb6d-4a93-826a-bc4a18df808b","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":159,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"50c8615f-f295-4f17-9818-1686a2b83394","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":159,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"4c18bf46-8cd7-4c41-9ded-6fae8b9c6e93","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":159,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"aacd7e00-9892-4056-b1d9-f8a4527e6bdc","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":159,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"6d51150d-bb69-4417-a7d1-086175668036","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":159,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"964d7a6b-5b65-40ee-bcf4-e69938b292dd","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":159,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"84fa84e8-5bf2-4d6c-b6a0-d754a99d9982","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":159,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"68b76c6f-e0f0-44e8-b44a-ab7ee0e66d51","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":159,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"883b7bfe-ea6b-4a3b-80ea-468fedc4e758","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":159,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"ab4a3532-feda-4f83-89ee-f1c644363b4e","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":159,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"68dcfebe-2eee-4ea0-93c2-36ba215e6ac6","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":159,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"65f232f3-90a1-48e4-bc41-8a5dd7700e83","block_type":"box","text":"defined below).","page_number":159,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"720ae9d5-2e39-421b-9602-27103f88abdc","block_type":"box","text":"Fixed-Income Investments.","page_number":159,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"c086f93a-c727-45c4-9384-c4c329a7192c","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":159,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"0b691093-d519-47a9-9d78-86139a31364e","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":159,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"e6998a7d-ebe1-45c4-8249-d7238701d35a","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":159,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"239d529a-a36b-4346-9dec-29afa8dd94ca","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":159,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"03d6388b-7434-430b-baff-d36ea7899472","block_type":"box","text":"e.g.","page_number":159,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"cca3844c-4458-4981-827f-d86b3d1d1972","block_type":"box","text":", recent representative bids and offers), credit","page_number":159,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"28658dfe-eb96-4b66-8db1-66598bc23956","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":159,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"22303fa8-07e7-43b6-af42-c2fcd4c68047","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":159,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"ef6e96cc-eafd-414b-9625-ca2a95f0057d","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":159,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"71ac3fc6-b04e-45e6-a741-ddcd338777b4","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":159,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"29160d44-2021-4ddd-ab61-1442fc5d331b","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":159,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"65b19c42-3bd5-4d48-8943-192ca0895620","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":159,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"2b7dcf93-bef3-4a0e-a7a7-8caccc1a4c4e","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":159,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"a2bd99c2-67b5-4e10-a6e4-6c77ba2afe1f","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":159,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"f56fedd1-2264-4917-a429-6ad24df2e42b","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":159,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"eaf322b5-8a4e-4981-9edf-e7949429c58c","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":159,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"f1c47dc8-4039-496a-a60b-65c921beb90d","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":159,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"2c40c119-eea0-4028-81ed-8bf67608e9b8","block_type":"box","text":"attributes of the tranche.","page_number":159,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"96dd8fad-2040-4e26-b45c-c3f8edce7304","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":159,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"47664238-f318-4180-8a67-adfab9ec54b4","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":159,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"64cbf85a-d2c4-4ef6-980e-d2e99b2d18af","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":159,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"b8cb3881-b74e-4758-a0b0-38a470880d98","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":159,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"2580cdcc-6ff7-4e0e-b0c7-feb1fe8bc650","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":159,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"43446a9b-bd8f-49c1-bdd6-40c301067991","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":159,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"062d4a63-c6cc-4e75-8191-2283927536bf","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":159,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"ffcf08a4-bacb-490e-8589-6b389f901948","block_type":"box","text":"II-122","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"745471cb-2213-4b2a-8b2e-6613a4b5ed5c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12eb59ea-6426-4a0d-ad10-2b0c884d84e3","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":160,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"ca12ad5e-b3ec-49c3-b8b8-56815568b3e4","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":160,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"7abb0eb1-2cbf-4588-9018-fb1a2d0f0016","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":160,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"d36ce154-6bfb-4e3e-a9c9-1b5545d132af","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":160,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"20b2962e-1d5c-4d79-a9df-f6f720dbde5a","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":160,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"b6a6ae0c-2451-4914-a8c5-ccb99eec3f58","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":160,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"50d5256e-732b-4b48-8ba2-75dc6fe308cd","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":160,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"3a429fa0-261b-4255-9e45-dde3065f38f3","block_type":"box","text":"Underlying Funds.","page_number":160,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"bb00d2be-b986-4a87-b130-6be245c6f42d","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":160,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"87ad9894-1ea2-4d33-b975-71b8949696a0","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":160,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"4f8eeed9-8e26-4f32-b151-c913848a13d0","block_type":"box","text":"at their most recent closing price.","page_number":160,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"da560483-0740-45e8-8e8b-cf4395c626b9","block_type":"box","text":"General Valuation Information.","page_number":160,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"321ddc77-cd94-4df2-8e02-0bb7534072ff","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":160,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"01d02b37-cd24-4338-9ee9-7eb919818e04","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":160,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"6722e7ab-274b-4c9a-ade1-e3c6232106e8","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":160,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"169f4897-3940-46eb-b357-febcfa097ab8","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":160,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"1f842b9c-0891-4e3f-ae76-ee20daff3c3d","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":160,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"fbf268c7-ae35-459f-894d-096dbf6aa46f","block_type":"box","text":"the revision.","page_number":160,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"3d3b5bb5-bb1a-4257-ae40-fb85554f2409","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":160,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"7de8ea45-8dd3-4936-9f7c-1c72d2120b0b","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":160,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"873d71de-46dd-40ed-9382-6cce3eefac66","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"105e088e-5a0f-452b-99b8-0c18a7a6e2e5","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":160,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"c7ccfbc9-c1e0-4577-8dd5-d344e1c4b12b","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":160,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"17d4f622-d645-49d6-97c8-e524ac16dd0d","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":160,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"4cdd1fb0-3f77-47fd-b45d-61c4b7e91906","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":160,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"a1c2ddae-d5d4-46b0-a054-deaafc8b5865","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":160,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"b6965044-18f2-4036-8304-dac154a41e03","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":160,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"4e446aa0-5888-4f18-bc6f-6c5f4535f198","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":160,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"427f2416-c84e-4d6c-961e-b1fb2884a0c3","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":160,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"e8527727-3de8-41fb-b209-6660730488b6","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":160,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"55f2a402-3bfc-4066-96b5-74df88faf881","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":160,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"c1f49a89-d1cf-45f3-9212-f9038cf34531","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":160,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"007dac97-5de1-4d12-bf98-ec98f3e19c2d","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":160,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"bb4c73d4-21ad-49aa-ab57-d61541fdd9c7","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":160,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"93198d98-1ad0-4557-882d-e47e73acf4dc","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":160,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"b0669aa0-8ac4-45eb-9fb3-dd27dde98975","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":160,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"8fd861b9-22f7-4efb-8843-84652c3f8a2c","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":160,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"1c8479b6-53b5-48fc-827a-49697a4f0bd3","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":160,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"5ea8575c-6cee-4ab1-955f-e4e0e1906c9c","block_type":"box","text":"Fair Value.","page_number":160,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"a04f5911-14ac-4aa6-9bf4-d58b0c65ecf2","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":160,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"d615c857-3d8d-4407-9412-6208cd631307","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":160,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"079ecca1-452b-4cfe-97b2-e842f4f205f7","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":160,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"07146e28-1c5a-4a6c-9ff8-2108b6885183","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":160,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"386a555a-3158-4e94-9c6a-6e6ac374f9c4","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":160,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"6484fd78-39e4-4ba9-abd3-8e6bd7962656","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":160,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"53a58ad9-e64a-423a-9ecd-2e9a18d1ab49","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"82b0e43f-f2ce-4bab-82fc-c9dc1c1bdb3f","block_type":"box","text":"(","page_number":160,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"2ff4e328-112a-48e4-9ade-cd04dc143443","block_type":"box","text":"e.g.","page_number":160,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"def2b9e0-5910-436c-86d4-22489685eb2c","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":160,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"3dd63bd9-20d2-46e0-8674-a51da18d1f6d","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":160,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"8205a50c-f38f-44f8-8c74-1ead2af81e21","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":160,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"b18d70da-d5dc-4aed-9933-200d6617ed37","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":160,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"71e839e5-07b7-4ab8-9e86-f98db86c461a","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":160,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"198f05ce-931e-44f8-b948-bf39825615fc","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":160,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"df2db208-4982-4076-80c6-801e5f1978bb","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":160,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"864d890e-cee5-4765-b09c-e0e3cad767ba","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":160,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"84977e92-2b2a-40b5-82f4-fb1a615428b6","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":160,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"0f9adb0c-5d81-4dac-8486-a2467a1394cf","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":160,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"a0fb1cf3-df1a-42e1-9998-29bd731507f8","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":160,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"c39f94ca-37b8-42fb-935d-35f18f9546f3","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":160,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"d2ad691f-8fbd-49de-b5af-168ef38322c4","block_type":"box","text":"II-123","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4288d859-9626-40aa-af94-fe22dca1c576","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a99e7e8-9de9-456d-a707-c5d2378c11b5","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":161,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"758a967c-b490-420e-a115-9b7453f6f5c0","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":161,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5fb4b0b5-385d-4530-9e85-77064ea44051","block_type":"box","text":"pricing time.","page_number":161,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"2dbd1d5d-b5b5-4d0b-96e9-6f7905c44363","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":161,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"a043549f-8816-43e2-82b7-1161f7ef8492","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":161,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"9778f8ab-c926-44c1-8862-89cd1258997d","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":161,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"336dc647-711e-4c80-8db8-531f4f752518","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":161,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"5f805921-0b56-4965-b23b-ea10ded6e77a","block_type":"box","text":"assets and liabilities of the Funds.","page_number":161,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"c3a5ce87-d6e8-4470-8e86-88c64f61798b","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":161,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"ab1cd299-e56d-4820-90b9-94d9ce20cc5c","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":161,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"dd8efccf-23b1-440c-acd4-0e20380b43bf","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":161,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"ad322a34-2116-478a-be14-6b38fd44ba12","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":161,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"0726cb03-21ce-43c1-939b-86f8d4ef5604","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":161,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"d7f38244-2c88-40f9-b728-0d997d6b1574","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":161,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"2a9af72b-d5ee-4266-9f98-5adad406ce4f","block_type":"box","text":"valuation models.","page_number":161,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"a324a46f-739d-420c-9fd5-007994645113","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":161,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"8ab564df-1685-4491-b22b-fbdcbb5c9bec","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":161,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"489ae0be-d00f-494c-9398-7b41eaa8a212","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":161,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"e58c6a3d-64e1-40ab-b05f-91169a81d94b","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"73b36049-b045-463c-8b8e-1e266c174e2e","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":161,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"b9199a51-8558-414d-b825-efab65139706","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":161,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d83895e2-32e1-4473-a086-ea7b679ad18d","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":161,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"d4765d9c-7f9b-45d2-9529-d0c5b023a336","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":161,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"ba3d0869-4a74-4520-8a81-d290f8468387","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":161,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"2547d541-cedd-4b28-9ebd-1b583d867bde","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":161,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"ad270fb7-c0a4-4f38-bbe9-78767ec2b338","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":161,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"c78da684-e063-4979-a5ee-070ae1985591","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":161,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"044d838b-97d0-47c8-8dec-c2f9690724f4","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":161,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"74f9a02f-8339-408b-98e6-e3950e0bcbd3","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":161,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"d31b1a3e-be66-49af-a0a2-24fe4fbcdf8a","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":161,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"0ae403dd-5a97-4cdc-9729-24ba9b501537","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":161,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"f07552d4-2ed3-4554-a924-15411350ac8b","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":161,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"e3908cee-bbbc-4507-a430-0f27743a3d0d","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":161,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"a3315f0f-9758-4fc8-8c7d-1c4092cfcca7","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":161,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"95e998d8-6006-4966-91ee-8fc42623c4ee","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":161,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"fdc17362-d083-403a-978c-bbbe0b194da3","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":161,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"3917a04e-81ba-40ed-8a8b-dbfd49931251","block_type":"box","text":"party determination of fair market value.","page_number":161,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"e348bbdc-b1b6-4c97-805f-f540784d3e47","block_type":"box","text":"Computation of Offering Price Per Share","page_number":161,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"4db3196a-3794-4eed-8be1-dd58866a8b27","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":161,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"61a70494-3868-4228-88b0-ecdddfacf8b2","block_type":"box","text":"the offering price for shares of your Fund.","page_number":161,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"23380f12-8322-45fb-a3f8-8b6de3d8c114","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":161,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"ef50d2b7-a86a-4302-b71d-5fefb944377a","block_type":"box","text":"Transactions in Portfolio Securities","page_number":161,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"4bdb297f-6009-4c8a-a73e-ed768e866959","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":161,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"e12e8fb9-7b88-4086-8e73-471b013b0d01","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":161,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"21404ec2-8197-4a11-ae1d-274da8ed0a57","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":161,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"0f014fb2-4402-4d4c-a34a-93a6ada27050","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":161,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"790ca7aa-d1a1-4232-a724-0d85cdf57992","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":161,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"c2700eab-5fde-4ed5-b7d6-b0d727c0d27e","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":161,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"9fdd4738-6bfb-4abb-8c2b-088bdf18c2a2","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":161,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"2300273e-9089-468a-978f-34e033ca9a5a","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":161,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"042e8886-8138-4670-b816-0d611c7b056d","block_type":"box","text":"II-124","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3bbb876d-414e-443f-b128-db2ae0003a27","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7fc48890-a35c-49c7-aafb-bc8a96ae0ee7","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":162,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"58d8d490-b90f-4fef-a6cb-7c9b45c8e983","block_type":"box","text":"reasonable in relation to the services provided.","page_number":162,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"95f69e3c-d0cb-48fa-a91f-1f7a84442852","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":162,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"83fdd22c-5630-4808-9ae3-124ffe9ce77a","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":162,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"ac9921e5-ea22-4231-ac5f-ac982d2dcce2","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":162,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"d4bde3e5-efea-49d9-90c0-c0fa3c7aa0b6","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":162,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"2f28f206-255c-477e-9308-a25513f0495a","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":162,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"26c9d08b-e3db-4c14-8f92-7f665364047b","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":162,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"dcfd85f3-0dc6-4151-9fa8-aaa030e203ee","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":162,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"2c593d3e-f9b6-4895-b0a0-81c6d4a796dd","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":162,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"2f340aa6-c73e-4ada-9e42-68bc97807a8b","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":162,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"c54699e9-05c0-4176-a741-31cc7f273071","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":162,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"8ff2b262-35b1-4806-a1b6-b9b6e9897d69","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":162,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"abeb2454-aca6-476c-98b1-dc4fef65da71","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":162,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"328b1dd1-c6a1-4997-8f01-77bfdd107f14","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":162,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"5cac5d1e-2eec-4e8b-9d43-e7b33763e2e6","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":162,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"a5ba4e7e-6dde-420f-8d7c-9c28d6b06860","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":162,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"92871393-1c88-4cc5-9adb-5b0c6961c647","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"0a278636-aac1-49b7-a637-4b12295dd3fc","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":162,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"0505a863-e7e2-4971-99d0-f5803ea77099","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":162,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"1c2490f4-cb23-4ca0-b066-0d2a362f496d","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"41f174a7-5e01-43b2-9ea8-f13078a16d19","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":162,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"ef524402-7de7-4760-ad0d-88ebb1711aea","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":162,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"9aaba548-8d85-4b12-9b92-fb8f3c55e2a9","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":162,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"ce834e9b-62f5-4fad-b9b5-66a6d7f2961a","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":162,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"60b91688-ece2-4081-9fcd-1f466ebe5219","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":162,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"0e856664-bf08-4b9f-be21-09d7dbf08036","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":162,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"afa68257-8683-48b8-b825-caf2e2183ea9","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":162,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"1fc5e3de-bdbc-4fb1-a96f-6f2753586dde","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"ce0d59f4-01a8-4122-8a55-5b9add01b743","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":162,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"0db863e6-daeb-40fc-9320-8bd43edf7e1f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":162,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"a8014d87-b944-49b9-9b3d-10ad5167e456","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":162,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"9db3dfc0-061c-42c7-8682-2c86d791290c","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"3e8fc83f-cde9-4735-b4d8-c7fe4def5e77","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":162,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"1baf3e3c-4361-415c-a3bb-2f9062f186bc","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":162,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"2129ff21-81de-4de8-818d-c3f1bf775e82","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":162,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"36290db1-ed56-43f1-9842-f7f96dba41d1","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":162,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"d16d4657-75be-4807-9302-e71e85d3627b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":162,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"71384178-fa3c-4e67-98b8-128ee561cbc4","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":162,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"7c3b659e-88fa-44a1-b7ff-83b6d1f917cc","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":162,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"30e20424-e428-4c1e-a69f-599eb91aebe7","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":162,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"365b0e7b-5bdc-47a6-a592-c3d70eba183a","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":162,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"dacc3e56-bb7a-4a52-854a-2027f2a4e523","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":162,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"e05279b1-c81a-4aad-8fcd-58642ae5f994","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":162,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"c3ac1752-962d-45fd-9648-7b3b2768838d","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":162,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"b088ba30-48af-4aa7-b6f6-4ee56a0b33e5","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":162,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"6c8968a9-f2dd-4916-873e-7047a06bcc25","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":162,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"ee10ab8c-9a5f-47e8-bdab-a8f4414012a0","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":162,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"a021898e-cdc6-45dc-a5e0-fb71002d10a3","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":162,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"81d3164b-3351-40ed-9a74-948c38ab5e6d","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":162,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"986f4e07-c083-4bb7-8202-40efde08a275","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":162,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"1ed57a02-9289-4d7e-8bbd-f8559ebaf287","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":162,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"573afa5a-edfe-489f-a249-401bedd864dc","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":162,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"0f17f79a-f198-488d-b247-90898b4b8f61","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":162,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"20e40d31-e465-4e8c-b8f2-bba768b996bd","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":162,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"636196b3-a3e1-4eb9-8736-76c14bcb8077","block_type":"box","text":"II-125","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6f24bad3-af0e-4d4d-803f-aedaa323df5c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4acb8909-5ef2-4322-8136-2f4cc3f39e16","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":163,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"38358ab7-c77e-48f1-b24b-a1a33bdede1c","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"35fe911a-b3a8-4bc4-94b5-e849f2d8e109","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":163,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"cbcdeb4a-4b6b-4580-9630-1b4aba15b8f3","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":163,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"e7be7a0c-9677-491e-aff5-250d2a94cc32","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":163,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"eef3fbc5-2b8c-4dd6-9600-d46c9cca6ff0","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":163,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"7ed62b11-ba7a-43e6-ad41-3297226c27f8","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":163,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"20bc9be4-f3f6-44b4-8592-62c854f038d7","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":163,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"8ed4be33-e257-4ef5-af7f-e46d4bff4e7b","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":163,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"4db456d2-aae8-4441-a324-ce133ca2b1e9","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":163,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"53c85096-f05d-4295-861c-7cb8f0313c53","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":163,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"17f4fb19-efe0-44fc-8828-113a3b3df289","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":163,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"2d7ff816-c8a0-4108-9168-b81ad5e4f731","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":163,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"c26d9134-c797-4bd7-818e-2bf780d448a0","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":163,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"205be769-c2d4-4c0d-a0ee-2c36b7d18f95","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":163,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"f020e904-16ab-4188-8996-987e2df528fe","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"46515f77-1136-4f43-b503-71eaa497393b","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":163,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"b5152998-2df6-477b-b97f-92809f0137ec","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":163,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"1ebf37a0-a92c-4a12-a12e-642a85e9fd46","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":163,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"bc1f3c04-3995-413e-bf95-5a29f32225aa","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":163,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"dd4523be-abfd-4216-9560-4fa0f9be0169","block_type":"box","text":"brokerage.","page_number":163,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"f13e8e91-68d9-4fb5-ba5c-103caaf465aa","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":163,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"93091499-ac5a-49b1-b06f-4dda54150976","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":163,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"eca0c022-3297-4e99-90cc-53973f3f4e39","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":163,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"a2a48725-400c-45c9-b2ac-f61a60813357","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":163,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"6e53b368-5572-48b6-a6c1-815039302381","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":163,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"820f19ae-d425-47c7-99c1-1c1e9b3b0eb6","block_type":"box","text":"Section 28(e).","page_number":163,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"7f7748b8-221d-42e3-8a8d-8df5dfe357f5","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":163,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"032fd44e-eab6-4955-afcb-51ef469d892b","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":163,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"e8183310-27b1-42c5-b5bc-2f91af5eeb66","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":163,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"5a509cf1-22e6-426a-a998-f7e04243eba4","block_type":"box","text":"execute transactions for those mutual funds.","page_number":163,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"b9d7f0be-7e6d-470d-baca-c3f8dadb1a75","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":163,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"a0be0d96-3d2b-4fdb-b41b-e81152b363c2","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":163,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"13d4e01c-3f8f-4f6f-b3f1-c76d9ae4fc51","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":163,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"91696452-3505-4bc3-bac3-8af30bcce00a","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":163,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"1d3379df-b98a-41b9-86f3-1e16a89abe9d","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":163,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"5652d313-f88e-4514-9ccb-5083105ebb35","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":163,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"aab76c93-ee63-49e5-8c44-ae93fd531a84","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"162e7142-246b-45ae-a5d4-fb98fbd36951","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":163,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"59da497a-fdcd-4751-9a47-ce73e5eb2cb8","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":163,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"9a1f3f40-4b05-4dbe-a79f-548e68cadc5b","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":163,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"47188bf4-1fee-4a19-bcba-08271656f99c","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":163,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"e9dcfe17-0caf-4c26-b041-ce2c0848df07","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":163,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"185af8b5-dd10-4c9b-81b6-a2d7c07e209f","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":163,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"c10b7be9-33a1-47c2-92dc-acb4303d93df","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":163,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"44e33b06-bd2e-456d-8dc4-c4c0c6eefc89","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":163,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"b77291c1-3cba-4dd3-9afc-80855563eb21","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. 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However, an affiliated","page_number":163,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"8329ebcc-4475-4bd3-8ef1-fa462759023a","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":163,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"8a2b3803-541d-4b0d-b25d-a1439166efba","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":163,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"233f8ba6-8ebd-4dab-9741-a9f1a1d69dc2","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":163,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"bebc825e-7660-43c1-823b-bb1a23e7bd0b","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":163,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"20396be5-a799-4899-9d30-3d31e460c3d3","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":163,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"bc34efcd-f42f-4a46-a843-eef5f4279644","block_type":"box","text":"II-126","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0a24adc9-f3d0-44a3-8705-8c825ddf43b8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab0e7192-4ca7-4d63-99dd-1c6d663a2d24","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":164,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"d0d17e0c-4fd4-42bf-a607-0fd67f8261fe","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":164,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"bebe22e1-eaf1-4a2c-a3e9-c447ebf89850","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":164,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"0c93beb4-42b6-49b8-8c5e-e652a5dcc300","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":164,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"8381c1b4-b105-41dc-bd7c-9f3a1ff37f39","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":164,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"fde21382-d5e2-4f6f-86fe-65c668658d98","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":164,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"055f5c51-12fa-4a22-b975-ad6286d13080","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":164,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"9761a727-7a44-4af8-93c9-7c6d5bb628a2","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":164,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"769a5738-88ba-4f81-82a1-e1d1f1919e4f","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":164,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"eaeeecfe-bb63-4b2d-a21b-18c75904c2c0","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":164,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"abe0b12b-6506-4c3e-83cb-2fde5e80b579","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":164,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"50280cdb-7b4c-4be0-9903-02e05bc85adb","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":164,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"68035d4a-709e-4ce0-9635-d945412d317b","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":164,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"04ff5153-f5b3-4ed6-8529-1dfb2333515a","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":164,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"6de822f2-615d-4b96-81e3-a7c237de28b0","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":164,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"a94c6fee-747c-4c9f-a765-b6bcbee74bf7","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":164,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"784fbc80-3bd3-4f9e-8adc-658d99fa055c","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":164,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"fe3d58a2-ee52-4edd-8690-6b8cd05467a1","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":164,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"e67d2b41-50e4-4075-bb5d-c32a5c7148e0","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":164,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"56ccb7f1-11dc-4a58-8182-eaedb6fd9b25","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":164,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"c07d46d4-74db-4b5c-b168-0a02894bf66c","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":164,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"6880fdad-7ce8-4433-b237-9634ade4b08e","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":164,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"e85279f0-676f-414b-94d8-dce27f9bd4cc","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":164,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"d96b57f6-763d-4a92-a8af-ec8d51f75645","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":164,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ef6bc86f-9d75-43b8-b44d-f099c2ff2136","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":164,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"934cbd3b-c49a-4a03-b7d7-25a1d9020014","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":164,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"ea5e84a1-1afb-4d50-af8a-2c1122006699","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":164,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"532b45f8-8891-405b-a602-f706bac29df9","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":164,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"a99ac1f3-54dc-40d4-8afc-b6e7dea0342f","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":164,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"2672e2fb-802e-4fc9-999e-9d6b37af6019","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":164,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"05e70aad-5e7e-492e-a0fc-accf1baf75d4","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":164,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e5cf57a2-3d3a-40d6-a49c-eb1f3390898c","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":164,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"c30094f7-0962-43c1-8878-a5b642109df4","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":164,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"8a014831-9a8d-49c5-b36c-e81b165818eb","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":164,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"ef221dcc-335e-43e9-b5f9-32b6eebc5429","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":164,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"4c2431b4-531d-4d38-b826-eb66fd10f688","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":164,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"e27f5561-f9a4-4a0e-8385-672faca4483e","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":164,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"f622f09a-3f6c-4cc6-8a1c-40752471d508","block_type":"box","text":"accounts and compliance constraints.","page_number":164,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"9e4ca2e6-e11d-41ab-9923-21639fbacf23","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":164,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"5ac46a60-b38f-41c9-8d47-5a0ca61947d7","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":164,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"91a0a4ac-48c0-44c0-93f0-2dd8897a4fd0","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":164,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"b7b0ecac-fede-4643-bdff-304cae33b6d8","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":164,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"02d95a5c-0430-4e54-bbd5-59bc10e545fa","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":164,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"291c514c-e947-4638-b420-339b92746318","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":164,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"03d331e8-773b-41aa-9f97-9913ca9e961b","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":164,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"da529335-e784-4a61-afd6-33472a889cdf","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":164,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"7bd219c0-e507-4abd-9789-50dbe472e09c","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":164,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"4f18b022-c9f8-4777-a3c7-68679828ffc4","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":164,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"e803177f-d250-4127-8b90-70ab3fdb685c","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":164,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"603902c7-6c5b-4054-8537-86e867798aae","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":164,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"3c1826c8-1f9f-47c0-be96-73ef26a6f3b6","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":164,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"3a1eba61-bfb1-40a9-acaa-964a7ff24011","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":164,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"f893ef93-3f71-46c3-843b-09a6853fcc17","block_type":"box","text":"clients may be used as well.","page_number":164,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"e4bcd7f0-6816-4085-9798-2594b024a8a4","block_type":"box","text":"II-127","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4a0ae898-d3b7-421e-a28d-91607ae87a34","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bb41ab8-f536-447b-a5fc-7b1dffb8d122","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":165,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"c1970614-c8d1-4556-8142-c58dbb8b5761","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":165,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"ff08a392-5b18-47dc-aac3-f71716d0a320","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":165,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"7738e682-d656-48b7-820d-3b262e688477","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":165,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"4e93b4c1-2207-4e5b-a317-e0c0e4c8c55d","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":165,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"b6c229bc-9ac1-4fee-b527-b8a0fea959e3","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":165,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"9e739cb3-0759-4951-9554-dc0f3b385b5b","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":165,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"49b943e3-a29e-4dd5-bd7d-4ec86a79508e","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":165,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"29439bf3-4f98-45ef-aa2c-a68f08127a9e","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":165,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"15622a93-594c-4ba0-969e-7d48766a1183","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":165,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"de517067-d945-4b42-9ca5-7a46e2b3d7af","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":165,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"51a8fd19-34b0-40da-b0d7-22e5fc6addff","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":165,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"573731d6-994e-4e04-b9b8-4530d4e9fd3b","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":165,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"c3cc91b4-1087-4874-bce1-be743779cb21","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":165,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"327f427e-4648-4c02-9362-982645c90b60","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":165,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"9de4fb79-6d35-44c9-93ba-5764d03959a2","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":165,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"fa801bdb-54f8-4e53-946f-648eb654690e","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":165,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"606e48e2-ab63-4162-b4cd-71f67eff8050","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":165,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"fbbdc4d1-62b5-47b6-aa51-4f87e4fab6de","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":165,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"3f086c78-a04e-4ee3-8a54-2fd16b084ead","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":165,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"4fb2f764-d4f0-435e-93d5-b690ef4a082d","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":165,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"dfec1d59-0f55-44ab-9cd8-1414e1ea39e4","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":165,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"88bfe1eb-3f75-4f26-b5e6-50ddab0a45ce","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":165,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"a9f9ed7f-43cb-474a-be59-1f75e20f4117","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":165,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"90675e53-8f77-4dcd-bb16-72ea6694d7c4","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":165,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"f924d36b-508d-41c3-a76c-282be539659b","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":165,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"e57672d7-7171-47d0-9e3b-2677430eed14","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":165,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"7e6cd5e8-222b-4c8e-8519-4a5245f79a6f","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":165,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"2b5ba64a-8a82-4bae-946b-43efb71b66c1","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":165,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"7d219bb4-1376-4174-b5f9-8b1ada455cd1","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":165,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"d1a11508-d4c3-45eb-925c-1371d48f194e","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":165,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"fc4f28d9-6307-40c8-9cc7-24a4f715330d","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":165,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"e202434d-1b8b-4b44-8742-ffecb0166e38","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":165,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"2fb552bb-40a9-49e0-9a1e-1afe45eebcdb","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":165,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"23381b30-95a1-4106-86af-167e7dd1095b","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":165,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"1c538cc7-abad-4dcf-af40-c08900fa7783","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":165,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"b38921c0-cc47-4b89-b6dc-3cb689f43814","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":165,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"d7b40acb-b3d0-4f4b-96a8-4c8306a26d2d","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":165,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"75316598-c946-4298-9bce-8a4d8e3dea89","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":165,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"ab06b151-07b4-4340-8363-db2d27a9b03a","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":165,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"8af92e24-70c8-4e37-b9bd-b4959b6c329b","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":165,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"693593af-e1c6-4a44-bb38-a0b5779c17ea","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":165,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"f391a706-fab3-49cf-b247-1a4aa8599e01","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":165,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"04e5fd15-80c6-43cd-9ea5-c0e3a6e244db","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":165,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"8d32575c-6022-4281-8ef7-aa77bdd06ce1","block_type":"box","text":"Portfolio Turnover","page_number":165,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"d91e913a-f305-435a-bf4f-ef58e6d23f77","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":165,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"7673d09b-fcf0-4a12-8454-36ecc54ac849","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":165,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"7eaf9971-ccc5-477c-8ff5-463e5bb6be8e","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":165,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"b17c9fe1-a182-42c9-8512-afe952fdb98c","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":165,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"873e15ab-1b12-4003-b7eb-f23a9eb62257","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":165,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"c6e16486-aa10-4597-a252-f4fa4c5021c9","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":165,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"80aece7a-a0b2-432d-9686-04064a78b757","block_type":"box","text":"II-128","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b93ec436-a453-46a5-a542-d56cf4486b2a","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e6c3b98-c2dd-4e70-8a14-95ecdb93e226","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":166,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"e56dab57-54c8-49fd-bd6e-e0a3ad657d9a","block_type":"box","text":"Dividends","page_number":166,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"2762b47d-e12d-4e3d-aa54-8fe7a644904d","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":166,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"d2d854c9-c1d3-4e07-82e1-2a2a70a12b41","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":166,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"3aaab038-07c1-4bd2-a299-4f6ad31a26ca","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":166,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"9ccad408-62cb-4630-b837-8b7902370cfb","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":166,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"41159c52-bbc5-472c-91d6-d18e753b739f","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":166,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"09f5b632-3f45-4f91-bf5c-ed92b804b69a","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":166,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"1c985b05-9d1c-44d5-a5ea-5a0b9602ba51","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":166,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"544cdba5-8ed5-48f8-97b2-9a04dcc1aee9","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":166,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"48b1ebed-9bb1-4853-87c3-7edb4dacd262","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":166,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"6400d2d2-f0df-4b3f-b170-5c9b8bc227f2","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":166,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"25297b99-e442-42e5-b089-2db051f67a3e","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":166,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"b231ba65-a395-495b-adcf-26073acbb8ab","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":166,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"6c99fb71-c591-4292-9864-490eb93fa2b2","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":166,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"63b06686-8ea2-450f-80d2-5191e00f3e85","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":166,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"af8a7ce7-3cae-4d6a-8c79-6e3f8135083f","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":166,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"7f9a77a2-15d1-4e05-9233-432a0b1596c4","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":166,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"4662b2ea-a025-4c25-bb8f-8afd80004602","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":166,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"52c22334-5181-45ad-8dcb-5b05604968a0","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":166,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"7f178cc8-0d2d-400c-b8e8-06e040628026","block_type":"box","text":"Taxes","page_number":166,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"ed060d3e-5b26-467b-9700-b403cf9d1e6c","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":166,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"20e35ab4-2e9b-47c5-b6fa-d5cd3a5fb1b4","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":166,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"9e830c2f-78ff-45b8-b441-215f94d05aa2","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":166,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"1d3d977f-4d8f-4340-a85e-ee6c90f3a0f0","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":166,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"5668567b-1b2e-41cf-b03e-88940152c386","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":166,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"7f504148-94b1-444e-9ebf-611352c4dbb7","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":166,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"673b8325-1333-423a-8410-0beeeed242b8","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":166,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"aa96abbc-e236-439c-a5f8-0c849590debe","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":166,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"03c29b7b-a521-46bb-af65-db2b6c429bea","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":166,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"7708f980-e7be-4872-a15d-8eeec9d2c48a","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":166,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"a85a6cf4-c4b5-472a-83c0-e1eca85991ac","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":166,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"f4b46788-4754-4908-8d38-ff6ad564f8c1","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":166,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"4329706c-87a3-427e-839a-7e1569374367","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":166,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"383d48d1-ade9-432a-ba89-be7429e52958","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":166,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"28054c4b-ea3b-4b9c-a34f-88dd3d726693","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":166,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"2cd40561-733b-44aa-8b43-1cbff10284b5","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":166,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"700142f4-00c2-49c6-8a55-3a5881b7ba44","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":166,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"622b8b8f-b8ac-4b71-977e-32c9ea31c7d1","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":166,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"aa496e32-b1d2-4829-953f-fbce9068a952","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":166,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"f4d0ff46-9833-4cb7-8d77-9177d28209fe","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":166,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"c17efe38-b519-48bb-a7bd-3de4c8512780","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":166,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"d75fcd8b-4607-4992-919d-f9408f9ddae7","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":166,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"b4290306-18fc-425f-b240-9cc7c5ed24d5","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":166,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"a437d564-674f-4433-866c-76f326731698","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":166,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"06e3133e-1760-4d03-b8db-a403cc91857a","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":166,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"bd9cd28d-e6de-41fb-9abf-4b6926ef18c7","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":166,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"5c55db63-34e5-4315-9557-fdde57d0b1d2","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":166,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"e6820126-f014-4f6d-a1c8-bcb81ac1bfe8","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":166,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"6d442326-f976-43b6-a7ef-be75df8ee316","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":166,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"ad12571c-5662-42c8-a724-57545e480d2d","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":166,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"2dbadae8-270d-4f33-96c4-6dfe3869ba95","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":166,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"b191672a-4504-4b5b-8a43-9b63b9c84f8b","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":166,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"fc515602-df0e-4f2d-ab14-053f31823115","block_type":"box","text":"II-129","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eeba1660-f733-4b10-86d9-39766256ee75","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce68a237-d281-4bdb-9247-004032d2400f","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":167,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"db7825fd-f8bc-4fd2-be2e-f56bbdd9bc8d","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":167,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"3ede57ec-2326-4800-875e-168a585fe22f","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":167,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"6b076316-df04-4356-9991-d1211ebf216a","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":167,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"dcb62204-91e8-4fad-ad76-90fc4998ee31","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":167,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"25762e55-65b4-414e-bfa7-e98be2e496dd","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":167,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"832b2276-0b6d-4f9c-94cd-de01798d2295","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":167,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"21facf46-b500-4bce-9f43-7be9fb7c1677","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":167,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"44d95f07-4ffe-42f2-a6b3-65695626800e","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":167,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"44c29a21-73a8-4071-8f14-1a1eff8db638","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":167,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"06612040-c01d-4823-9e58-bf1a127457e3","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":167,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"b7696531-3454-4c89-813a-060ff6f17e24","block_type":"box","text":"limitation.","page_number":167,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"cab0b78f-3dcc-4914-b8c5-5d8de9eba08f","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":167,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"85b7163b-1348-45af-89a7-46c8a6696627","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":167,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"7a079074-7067-4df5-af40-e94731c60faa","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":167,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"2517586b-97cb-4aa0-afa5-945a53409d8d","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":167,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"6b83f0f3-b589-4c46-9bbd-9cd3b37d755d","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":167,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"32d0689f-819e-4298-9a99-822932ba9426","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":167,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"07659333-defc-4108-89f7-3f08b3ba23f4","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":167,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"408405b4-9225-470b-9e10-889018258033","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":167,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"3f2ac289-a2c5-4109-9a4f-04433ea32145","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":167,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"3c0dbd3d-43ce-4537-bb1e-a115f438ec38","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":167,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"02e4c000-96b3-4d93-9dec-9c59fbfeae8c","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":167,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"8a4bb7cb-2f74-442f-9689-94f3326cc672","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":167,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"bfadf604-d865-4242-96d9-3dc3ba2a9211","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":167,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"18813f4f-0614-45be-b105-60dad8e46ea2","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":167,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"f264e6d3-bee2-4eb0-b1eb-bf2b575c8213","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":167,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"1d233c55-a721-490a-9cb5-ad9b053e7fbb","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":167,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"585f0388-a49b-4674-9d2d-2e7a04e20b75","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":167,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"6187299e-abdf-4574-944a-06502d91c753","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":167,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"991b98ef-2bb3-488d-afcf-ad19b84d1a6c","block_type":"box","text":"constitute “qualified dividend income.”","page_number":167,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"d34b388a-01e6-4a18-bacd-bed4f5e5ac16","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":167,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"a01e40be-0926-41da-b896-c8d442e703e5","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":167,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"a46cde05-73ac-4fff-ac9f-0ee2a626b847","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":167,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"754f2a87-51fb-4502-a8ee-a4aed7936a9d","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":167,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"17f3cc14-af30-4997-93af-3ff2ecbc2620","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":167,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"0fd0c161-0415-4d64-8e25-21838ae5c90a","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":167,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"6da8890c-b4c5-4de1-bff9-4695c9df09d9","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":167,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"27f7d6cd-bd4f-4368-a13f-62c02f8bbb30","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":167,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"434b77af-6455-4b9e-9261-820345f74a21","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":167,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"5a4d8cf3-df48-448d-a337-bcda8f7d558e","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":167,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"578482c9-9db1-44f4-ab9a-3ddebc7fec28","block_type":"box","text":"against their taxes.","page_number":167,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"031bfdd0-6b36-42dd-9c0e-0f0997aed281","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":167,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"cfd9b1da-09c1-47ba-a869-16c39f44c876","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":167,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"1050b234-1b26-4ef8-b60a-ca2a826438c1","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":167,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"ab5d8ce8-6a69-4bde-9f8d-552a779b5d10","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":167,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"53410eaa-0d9e-4682-9278-1997a3952436","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":167,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"6e61ce28-58b7-4a4f-a864-202e41d02869","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":167,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"0c06a592-b234-4d67-9f48-d01b16b739d3","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":167,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"a38b1239-8218-4efc-910e-c4a3beaa5499","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":167,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"826485c0-4490-43c1-b1df-9016bff38421","block_type":"box","text":"dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"c6caddc9-a410-4744-96e5-9919949abe22","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":167,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"605096c5-df5e-4b80-a98e-c2a947cf13bb","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":167,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"a5037a3b-9b20-4ea6-8780-3b3d8a6cccaa","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":167,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"62746ce4-5d2b-4ddf-8631-0a10333af0ed","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":167,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"fc4b4000-a71a-4b32-86f9-f57950b5ece8","block_type":"box","text":"II-130","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"52fa9d9d-3d44-44dc-aea6-6abde3b1de70","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c826686-da42-4e1a-84e1-dad9809a6695","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":168,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"f649642b-f03c-4e73-9c15-4c28173d6748","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":168,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"1d962901-3456-4d27-a318-97be1d8c0bd7","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":168,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"848c27c8-2ba7-41d1-9ffb-e6999d2bb641","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":168,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"d19eafc0-2c42-4f18-bb62-687378010bb3","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":168,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"94770ba0-3274-46ef-b391-4a72a2af05cc","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":168,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"a8b2bbf1-1a30-4c38-96ee-d607702b712e","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":168,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"93deac98-e795-473c-9fed-b57da42021c2","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":168,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"2f9a15ef-ed84-4009-9eba-7550fa5a5de7","block_type":"box","text":"taxable year.","page_number":168,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"9909f6ac-93c3-4e09-a9f4-8445b5ef2fa2","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":168,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"a571e603-58da-415f-aee7-709dc70853ac","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":168,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"02c18faf-880c-4a8e-9dde-7dc6d6093e1a","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":168,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"9f0c3a32-bd62-4f09-b491-b0c207690818","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":168,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"2d592fcd-7c7e-40fa-921e-2deb5710b31b","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":168,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"daaf7f64-4446-4afc-86ec-bb53d79af762","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":168,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"a060616f-b607-4faf-b318-61cc78f889a7","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":168,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"593f492a-cf39-4822-8d61-f31b0e5c0611","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":168,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"3a785106-8d6c-4809-9974-ff60e562591a","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":168,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"9ca1c59b-e103-4ef9-ab78-264b254d2055","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":168,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"93a07074-681a-4f98-a0cb-94414e61ba41","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":168,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"d6d514dc-186e-4d73-80de-0991d097dd8d","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":168,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"1a075b72-774f-4f19-8634-adc848f78396","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":168,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"7461e5af-fedc-497a-b60d-97df64db97a9","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":168,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"c06b8d12-67d0-4c72-a0eb-ca0efefe57ef","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":168,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"ca1df376-738f-462b-a7f8-019f9d0e6932","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":168,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"1b2749f3-542b-4bde-b3d6-cc9b27628d91","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":168,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"2c1dad29-aa6c-4810-9066-f2f9d5c1e739","block_type":"box","text":"special tax rules that apply to their investments.","page_number":168,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"4191278b-8ad7-47d5-8af2-1998405ff484","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":168,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"cb6bda8f-6286-41ea-aab9-3b85d85a1ff0","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"fd8d6738-ebfa-4ff4-988b-c047e7671f4d","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":168,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"d54b5b06-c431-417a-9c38-38dd833ca1f9","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":168,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"e045cb3a-1bb8-444c-89ff-7d22625c4842","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":168,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"4c52efc5-ea39-495c-a625-5852513f1faa","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":168,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"792b4694-06eb-44e2-b17d-8bcf5193ab9c","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":168,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"30bb63d3-bede-40cd-847b-6e64fb56860d","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":168,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"070f42e3-38fa-4d48-83a8-b4f8398d836d","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":168,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"61e9884d-4817-4eee-ad8d-08ebbc667355","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":168,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"ec2aad48-7d3f-40a3-8954-e581abfbd1fb","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":168,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"a79c466f-4357-417f-9760-0bb04775a8ff","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":168,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"3158038c-2b5f-47d3-93dc-b25630acc19c","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":168,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"5a0bb559-0eb1-47de-8def-cfbfc5c8c9bd","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":168,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"dd9a894b-a4a5-47d1-87bc-0e55d2c89335","block_type":"box","text":"redemption of such shares.","page_number":168,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"10390823-28e3-4ea0-b22f-a0d8d835a54e","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":168,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"844472be-6143-4c3b-b230-fa7c8214eaa6","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":168,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"e77b6022-8403-400c-bb79-7be941b8d10a","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"969e873b-0c32-44b7-8aee-c5aaad5961b3","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":168,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"a567929b-06ca-4a29-8666-1050e571c9dc","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":168,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"3392f38f-4000-40a3-a4dc-e703b3b33cbb","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":168,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"00d18c4c-bc80-4eb3-9a3d-2844681e652c","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":168,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"74df99a3-3c63-4836-887c-d7cebdc30bde","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":168,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"d3ce5ad1-cb6c-4119-93f8-3422b00c3fb6","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":168,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"bd8337b4-9c26-4f8d-950f-1c79f170d671","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":168,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"0c87552f-d48b-402d-88f1-d7eeff63c162","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":168,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"52078653-e360-4564-9f9f-79c9d880bdfa","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":168,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"3545eae1-c8f5-44da-80e0-11ccdb992afb","block_type":"box","text":"II-131","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c9dc0151-c56d-45c4-a227-62b28b79ee24","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8fa6c34-48bd-43f5-8c91-d08abe442a47","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":169,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"d91f0a1f-10c8-49dd-a686-7a1d92d6bd5d","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":169,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"5a8ea583-9086-4563-b2b5-05163cdc2ba1","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"bfb50ae2-d524-4630-83f0-40b2cd692e80","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":169,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"90b90592-feca-4427-91bd-e8389273a714","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":169,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"f3e179a9-b89d-4ca5-ada7-5c8c7cf7302b","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":169,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"7f305813-c709-44d9-b8fb-e919b588fc40","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":169,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"dff965c2-3437-475a-8c41-0d9538658c80","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":169,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"ccc2ded3-8309-4eb2-891c-f486d8542a10","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":169,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"3a03955c-a465-4e3c-b844-061aa97aae98","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":169,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"2426c859-f526-4503-9b26-a9baf313daa4","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":169,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"7861a218-4692-4ec9-89b7-6d6528e573fe","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":169,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"6cd64904-08c0-418e-a52c-8c9e4881f157","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":169,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"1746d8dc-51b7-41de-ba7d-41b504ee3842","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":169,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"0703879e-f513-4691-a268-3471775cb0a7","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":169,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"3208fe4c-7d30-4456-8551-3de4adf96a70","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":169,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"6fe117fe-5b68-4f08-8bc6-bf4d674c629e","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":169,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"e76e74df-4547-4786-b41a-7d6c317b0d0c","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":169,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"6b862ee4-d10a-41c3-8518-e8ca63d9a8e4","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":169,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"2dadd489-55c7-40d8-97a3-23dcefc92c97","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":169,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"2d9c067d-872d-4007-8e47-07d7f9ee8109","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":169,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"51698738-ff99-47cb-9b7c-862657bf9b05","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":169,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"f395418f-d6a4-4650-92ac-826a7320e85b","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":169,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"ac319d63-1285-4e5e-a070-29fe317db3f4","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":169,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"976a246b-5dcc-4cb3-9028-1bc190775bd6","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":169,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"b47346a2-de51-4a9b-a639-896499047331","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":169,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"e5ee29b4-2047-4be0-ab50-a411636cf4b5","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":169,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"ca45756c-5938-4e72-9b5e-b8c279ad8627","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":169,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"c257b3c2-e614-4a87-8112-97cfadbef7fa","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":169,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"e6c2349d-61f9-4c17-8c7f-d74351bcd996","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":169,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"4d5e0343-d6aa-468a-9bce-53dadba74c0f","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":169,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"5e70a92c-97bc-45fc-ba10-f308d46d10f6","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":169,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"39d3692c-72a5-4dc5-b90b-9e5e330953d7","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":169,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"a5d1da8c-72a8-45c8-bf35-7d8d23be1327","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":169,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"ef3fae4b-455a-4ce7-9159-b0100658ebaa","block_type":"box","text":"in subsequent taxable years.","page_number":169,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"89e47321-deee-46c9-91c6-4a93caa0a897","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":169,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"2bc91327-75eb-4199-91e0-eb207da8d098","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":169,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"25d6e800-5488-4db6-91c0-bab1c245d42f","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":169,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"9510e8d0-bd2a-491f-abbe-bb331c82d6ad","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":169,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"98b6a6c3-5d2e-481f-94d2-4d9dee887d5f","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":169,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"d0300af7-c7ee-40d6-bff5-ad7534884995","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"0d84d734-bf29-4fda-9180-bf18830cfa0e","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":169,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"585dfbf2-e7f5-49ed-bffc-9d36896e673d","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":169,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"035a90db-778e-40ff-837c-652ab14249b0","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":169,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"1c039041-6986-4a82-8e13-c9e8c7263106","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":169,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"80c75b8e-e3be-4426-ac2f-108c647bf520","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"c752f7e9-bc42-44cb-a52c-6e17bc05c5cf","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":169,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"4589ddf6-4b96-4341-ae4c-af48b304ae98","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":169,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"21d8bb94-cb3b-41b7-8fd4-d55eb497910b","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":169,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"3a74d6e3-a374-4aeb-910f-7145ac66e551","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":169,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"b594dc2a-fd2d-41ab-81f5-f730d1374823","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":169,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"df2c2a77-1202-4c18-87c2-745d6d78768f","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":169,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"4a39d67d-c0b8-4939-9ec0-1dbca4bc1870","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":169,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"5c97b97f-e3cd-4a72-85c0-7973c75aff89","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":169,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"c6006662-a25c-4c93-b608-c67f9c7e7190","block_type":"box","text":"dividends under these rules.","page_number":169,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"c4b41f53-9cc6-4c68-b8f6-e3d0d9af8a8d","block_type":"box","text":"II-132","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b6b61e0e-ac15-405c-87ec-aafdc1455070","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fae2bcf4-f312-4f2d-bbde-a3c7d6dd6c0b","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":170,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"07994499-c81d-4203-9994-633b1d211d05","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":170,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"281977b5-4813-4276-873f-97cf2638d64c","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":170,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"379228d0-c520-4e33-a829-c2aaabcfea40","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":170,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"09fee214-a84a-4d12-9418-9aa2745ea5ce","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":170,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"da1eb6ab-3bc5-4349-8083-b5f405769955","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":170,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"3f93a3d5-64e7-495b-988d-8e94367efd23","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":170,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"4d32ab91-a33c-4a6b-be55-17e3fc40c6c4","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":170,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"29b03c44-0c78-4279-bc82-f5a16a12557f","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":170,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"e160c26d-3f0b-4704-a539-bb670231c43e","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":170,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"153489a4-3aad-4466-9590-001c23b76600","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":170,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"57069d94-37f0-40ae-afac-46b610ab725e","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":170,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"55f519fa-0e97-45a6-957b-5a745feb43bf","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":170,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"8ed4e372-0876-4b88-b698-afcf9037718e","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":170,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"1b5c94d0-1a42-45cc-a5ad-d44c1223ba40","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":170,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"62ced8aa-45ff-4f45-92e2-51720d074eea","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":170,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"8b91e1ea-3814-468f-82f7-5a3714e08f1f","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":170,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"eb9a9bab-ccdf-4975-836d-b4f44946b20d","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":170,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"07554877-894f-4c01-87da-5ac25c67055d","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":170,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"b56276fa-0c7c-40c3-abfd-e81b46225203","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":170,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"e6eb1e48-0b27-43d1-86fb-ceb3fce0fac4","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":170,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"a503b5d5-d87a-425d-8482-b95c7a8971cc","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":170,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"9853ad23-5ba2-4166-a82f-ec3327b1cd0e","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":170,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"c47647b6-804e-4f4e-aa05-9d8fd556e28e","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":170,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"bd02a7e1-20dc-4c14-a71e-90c4aedb6d94","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":170,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"70752fd4-bcb1-4c25-aa73-f0c7185dd03d","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":170,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"e5d6c10a-21fd-4918-bd72-7a9ebe400216","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":170,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"9f08053e-c56f-4fdd-97a5-cb8d12101d74","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":170,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"6f3f9719-2fb2-4a75-98e8-5c963614a839","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":170,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"8b285b5b-9673-4693-a0fe-facc133f3487","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":170,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"4cf43438-dc59-41ae-95fc-c375831a2a93","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":170,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"c46feaa0-5b9c-4e49-a16a-66af3ce211f0","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":170,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"61b621dc-33cb-46f8-8fd3-83c00ef53288","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":170,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"a28be806-328c-49d5-bebb-e68360c60b10","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":170,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"e3741f02-f52a-4e73-a95a-312a73a6d1c8","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":170,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"acca6afe-03c8-4adc-bc49-6bd2074b7839","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":170,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"65d3a891-4492-42c7-8c08-9b46bdb190d1","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":170,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"b39f83dd-e954-426e-b6e9-dca754ba38b8","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":170,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"d9003b10-740d-4b4a-b0bb-d9dd59475d39","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":170,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"1cffea9e-b62d-49d6-bb1c-fcefaae7fbbd","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":170,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"6a98aaeb-839f-4dd0-a10b-a20c4abb396d","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":170,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"4bebd7e0-082c-4483-b6d3-ad51e4e05d66","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":170,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"5bb37f88-66dc-41bf-b130-ae59ea0887f8","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":170,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"82eade62-4254-4538-b3f1-a32361a1f1dd","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":170,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"e1bdd757-f14c-48ff-a251-bbe4073dc591","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"b78a7c79-d135-46a3-834e-0233e499f7f0","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":170,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"b4b4ca10-f913-4242-8920-2daf13c5667a","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":170,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"76df7110-a06a-4ce0-b768-2cfb53413046","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":170,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"9f3a5250-cbcb-48e2-beb3-a7cd9a1b2a34","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":170,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"8330a6a4-20fa-4f03-9705-89343897bde4","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":170,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"c66a3b20-85f6-4e2c-a7c1-11087c088e6d","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":170,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"1f89c57f-a3f8-457c-94e7-84eedbf44e0c","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":170,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"110c8842-5003-4d7f-abf7-ed7066662883","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":170,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"96a0d221-6666-41c8-8c5a-ee4886e1b0cb","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":170,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"19be0a27-179d-4096-b375-91e167eaee3e","block_type":"box","text":"II-133","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7cb21e64-f453-4e05-a824-b6110b9b49f1","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"219b827a-1366-4fa0-9250-0b641d3679e6","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":171,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"12da2430-61ea-4d17-84ff-d15ddc0a7655","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":171,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"d231bc9e-9e22-4c19-8ba7-3cacd4aba8f6","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":171,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"b3b55eae-d75b-41a0-96d2-dc2fa74b11a7","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":171,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"57a75240-4c79-47da-9a02-f3f5c156271d","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":171,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"180d74ee-5160-410d-b660-da50ecaf7442","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":171,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"238bdf3e-5b69-4d74-b5dc-0379447e0922","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":171,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"62591d8c-a785-47f6-a415-192897626a25","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":171,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"8350d0f3-75b9-4a09-8720-d3daf2f88ba5","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":171,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"81f141f4-8207-4cf8-82a7-e1783b2550ba","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":171,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"08b2c6b2-ad5d-40f5-b8d4-85e5b4a4e776","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":171,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"ffed7b92-f89f-47de-8c93-a4c5b08fbea6","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":171,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"00712fc6-dcfe-449c-8ac7-d4be6cdaea37","block_type":"box","text":"investment opportunities.","page_number":171,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"c00444dd-8695-43b7-b078-aa9afea33d30","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":171,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"cf36bdd4-c16b-4698-8a3e-0f8233f032a1","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":171,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"f5ec60ac-0ce5-45ea-815b-9d7cb4da0b83","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":171,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"db6c7449-6c53-4252-bf4e-7600135a32eb","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":171,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"fc960be5-376f-4930-b3a4-94ff49ca36ff","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":171,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"fdcf3dc4-cd24-494a-abc1-984e43a35faa","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":171,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"e4e42727-6115-495c-94ad-3140c410d73f","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":171,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"d7d0d75e-1beb-4b85-9057-0b49e347c840","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":171,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"1c939a04-b4ef-4515-b0bb-3270be13c5e7","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":171,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"2a4974a9-12f7-44d8-9cee-a6cdf00a5958","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":171,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"084c630b-d370-454e-96d7-9adbcff66a30","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":171,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"8ca86923-d69d-4bca-ac53-8dcaed358bd0","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":171,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"25f31019-16a0-4a66-8d47-63b0dc79564c","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":171,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"06bb406d-c800-4114-811f-cda620daec30","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":171,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"da0c05f3-5933-4d31-88d8-e0361f97c1c0","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":171,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"119608ed-2e49-428e-af7c-a5a3dd9f3ed5","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":171,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"3b06a2ec-cdf6-4ad7-8c11-32175a1a536c","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":171,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"ad3ab2ef-4bb2-49d5-89d1-49cb7d111374","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":171,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"7aa073d9-d59b-496c-bff5-86dee4c5c31c","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":171,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"1cd3618a-44c4-4343-ae37-c37fe7041c6a","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":171,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"fd70f202-5ef8-45dd-b62b-a7208a2aedbe","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":171,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"55287db0-d16e-4391-ac48-a0655a3ee01b","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":171,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"77ab5741-8020-4f7a-a71f-ba6e8608073e","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":171,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"986afa53-2238-47b3-ac00-63dd71b4fbcb","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":171,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"b92314f1-5922-46d0-829c-d7611957dcfa","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":171,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"86b8ab5b-82a9-430b-b8fe-c7630c787515","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":171,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"46a0454a-b279-4601-8faf-7272713d38f3","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":171,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"fb01871b-3f81-4f57-ba85-5b4bf5536273","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":171,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"f6c1e653-8ad6-4757-9ffd-98ab47e39497","block_type":"box","text":"positions in its portfolio (","page_number":171,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"b2112f93-e5b4-49fd-b3d8-7df08513fd88","block_type":"box","text":"i.e.","page_number":171,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"26286de8-15f6-45ef-843e-afebfd7488dd","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":171,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"e7682abd-e232-4da0-ba56-76188fd33945","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":171,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"91d0a773-4f9c-45cb-be22-e970bf8b380a","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":171,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"ab41c893-4aaf-4bec-b6d5-e2d039787177","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":171,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"81488c07-cd91-4fd4-9af5-19834b7367a6","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":171,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"91345876-5aa3-4521-b134-1d0372dc261b","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":171,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"e81109b2-41c2-43cd-902a-3d536c708acd","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":171,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"eee15177-3a36-43f0-9a48-cd1bdbf631da","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":171,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"2bf28794-a60f-4121-9f37-7a7cfc6bbb1e","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":171,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"3eda14b7-70e7-4cbd-8b4a-d91aa6c40c9f","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":171,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"7843e0a0-8ace-46a1-a8c2-86c472e5f603","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":171,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"47bd8985-1231-4fe5-8005-db0680af73de","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":171,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"02911964-2127-4fab-9819-2876069dace2","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":171,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"18e895c2-5b24-4836-8f36-08e7cf5fbcde","block_type":"box","text":"II-134","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"28952f29-5ba7-4942-9ed4-70480b2d6489","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb8928b0-f8af-42f0-b39d-6ae90a6678f8","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":172,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"78221044-621d-443f-bfa6-172908895a3a","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":172,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"db2e51ab-39f7-4f97-bf2b-f1e05aab9284","block_type":"box","text":"capital asset.","page_number":172,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"753ff2e6-5d4d-4150-871a-49aa3e200a46","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":172,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"8dda1cf6-9e35-4ffc-83cc-9eca33c64845","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"70521492-1b39-44c9-8f9b-bcce38cf4267","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":172,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"447ba0e0-51d1-4abd-ada4-395465a66f0f","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":172,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"51e1fe9e-dde2-4545-9d03-7a09bff7aeeb","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":172,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"04a65700-a040-4cbc-802a-c8c1cb6628d0","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":172,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ed1d5b2b-efb4-4d00-857a-1d917cc4e0c9","block_type":"box","text":"Fund were to invest otherwise.","page_number":172,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"dccadeb0-4695-4fcb-90fa-526ad3d94ff1","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":172,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"94a5697c-a722-42d2-96c2-4fb70b3f498d","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":172,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"2b201264-d241-487a-ab20-5d12bcb9619f","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":172,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"cbfc132c-949e-4783-9e28-6fecd47337bc","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":172,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"0aacffec-0e8f-4600-8c4c-fd921145818b","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":172,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"3935342b-3441-4c46-ad47-de34d48316ca","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":172,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"c4929c38-8a59-4a35-b9a2-a33da55ff415","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":172,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"1899e042-d51c-4206-95a6-576cef8c7fde","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":172,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"cc045f75-4e32-4365-823a-e6dc7e47cea3","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":172,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"acad6b8f-84a1-4ea6-9f81-1c5fd320920d","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":172,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"ec19162e-0067-4ad9-910b-7ba7cf4aaf91","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":172,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"6e451b2c-58ad-43c0-859e-c23c23103b62","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":172,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"41fa7167-cc3d-4add-9ebd-35c72d6529d2","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":172,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"eb6405b2-e1a4-4c8e-9b4f-11a5c07a25d1","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":172,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"caf93f99-dfff-4543-be83-96f39c94c782","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":172,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"7052eba5-004b-41ff-bb54-2577fa7e4b03","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":172,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"8dc4a582-8f35-4928-9d8f-f43807e15099","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":172,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"2f8bcdad-5681-4b5c-9082-f11e438a1c39","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":172,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"28fb7ff9-96f8-45e5-be7e-38dfbc839435","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":172,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"046ab87d-fce1-456e-8d5d-585b57135713","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":172,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"23f26aa4-d2c1-4129-8591-62ac4360ebcc","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":172,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"3af919d9-cfd8-4443-9c19-44d128838338","block_type":"box","text":"PFICs.","page_number":172,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"34f70990-3270-4d50-918b-a6558baccadd","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":172,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"4476bc16-4bec-4898-a382-e5cba84b5dd5","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":172,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"0f743283-7213-4d2f-bf50-4b1e84e808b5","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":172,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"f97adf06-47a2-4c86-bd11-8eb526859e78","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":172,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"e51df038-c30d-4629-aada-ebc04a44fe50","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":172,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"7596111b-4b92-4463-b588-789ece304130","block_type":"box","text":"difficult or impossible to obtain.","page_number":172,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"6c70f070-a334-4034-9b92-535bd80bcf22","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":172,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"10e24987-c6e3-49ff-9dda-cc808111e812","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":172,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"ae358323-3947-4938-8c0d-1c13316ff538","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":172,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"6d5dbc38-6ed5-40ba-a9f8-cb140e61713f","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":172,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"03d24710-7392-4f1f-a51d-ad07269b65b8","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":172,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"f090e06d-f6b5-414e-92eb-61f0c7843f21","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":172,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"da563cd5-cd02-430e-8ea6-6a194595f912","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":172,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"79b30b1a-3d34-444a-aa6b-a1fb901f8607","block_type":"box","text":"Municipal Funds","page_number":172,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"0e8c5998-66b0-4eae-bba4-c5b1fd932263","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":172,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"032d2020-6246-43ba-b1bd-5bb4f4a5eaa4","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":172,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"036d7bf2-2642-4bbb-91e9-0458370d6564","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":172,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"0d34be71-81ea-4404-8edb-498b6e7f21a2","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":172,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"9204035d-ce8b-495b-8d45-e8f7f4803414","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":172,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"1b33ded8-1ec6-47a7-a9ea-b8d7efa45b40","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":172,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"21f6a66c-aef9-4464-91c7-42ae97e84a58","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":172,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"b2859e8e-83dd-424a-9ae8-856f30b522a8","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":172,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"866b184f-9382-4d9c-9049-2b802540e852","block_type":"box","text":"II-135","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12b3fec1-0841-40e4-a4aa-4d8188eb4c5f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c80a70f5-b4b3-4537-a179-5105d8fecfb0","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"4f122a44-f9ed-4c6e-8b98-f72d39d75de2","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":173,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"4a5bdf37-a026-4dd4-9c8f-8fd798a30db4","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":173,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"cba459e0-d8ac-48df-af1e-fc7bb65d0020","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":173,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"ea3198ef-9a93-4be9-8c2c-bde537e5cf34","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":173,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"04d7b75e-8877-498e-b045-0d2d444e81a3","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":173,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"886a7562-fec1-42b6-8119-f71671e2a5e4","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":173,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"f3494c8e-1535-4dc1-b894-2f4200e4d09f","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":173,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"622dc9ae-0ae2-45b3-b467-c921da7b5a51","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":173,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"4bc97780-b108-4963-b908-213b29b41d46","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":173,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"b9de8a07-e73b-4257-82b7-7a91a78e1098","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":173,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"367157d7-c8e4-487f-8077-56687bcb05af","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":173,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"8af7b17f-94e1-4465-8cb3-a70c3d35054d","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":173,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"1e9f7607-a1a7-4baf-980b-cc0de4e8c4bc","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":173,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"2be0d034-9a47-47fc-af49-f995e85d03ba","block_type":"box","text":"constitute exempt-interest dividends.","page_number":173,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"ce5250b4-ac89-4225-a4c2-485e5c2fdf98","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":173,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"b7d135e3-0dcb-4b20-98e1-d37c25e715e6","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":173,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"91f8f251-d49b-4dd3-b437-4289b24ec2b1","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":173,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"599d6577-a026-46d3-9281-2518bfeb3146","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":173,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"6887b4cc-7a2d-4cba-a5db-096138e26b66","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":173,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"ef41cdaf-3c71-4c78-ba72-51d3d4e77066","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"1a8fe948-cfac-4245-a11b-e41bbfe2de12","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":173,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"eda5c36a-6cab-4edd-ac98-a5b7769434f5","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":173,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"f1e722fa-8d6d-452f-a6df-7722e3a55ebe","block_type":"box","text":"income dividends received by shareholders.","page_number":173,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"c09b472b-2a16-4ff0-b0fe-579b3a8c87d8","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":173,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"a3e4c3d5-e5b7-44e2-a321-5fca8144d2a3","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":173,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"4ee773a3-e345-4f32-a551-dc9544d8dedf","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":173,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"e643c499-63dc-4914-adf6-d02c81a33f5c","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":173,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"30a74b94-91be-41ab-a8fd-c122b8ac4799","block_type":"box","text":"the accrued market discount.","page_number":173,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"ca6b411d-6bdd-41c6-bb3e-6fa4037d1ccd","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":173,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"e5979c29-d33c-44cf-a4b6-cff78649826c","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":173,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"bd1a2fe4-9942-4f9e-9ee6-6fda05eba1b3","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":173,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"8e01f126-a69a-43a1-b8aa-b10e6f7c25e3","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":173,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"81055da5-140a-4640-8603-225ea4f03ad4","block_type":"box","text":"e.g.","page_number":173,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"a92d9bb9-cc7f-4b20-a073-c0457c826d40","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":173,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"15df242c-f2e1-4bd7-ae26-8b926570390c","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":173,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"594fcba2-4b22-4835-b36c-cb73d52ba334","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":173,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"61c405d6-5448-45a3-95ec-34fa8c5401ad","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":173,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"7a88000a-e70e-4e3a-909c-398ae4a37f3f","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":173,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"dddd2db6-c292-4625-ba00-42a9ca62d251","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":173,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"9ea24ee3-7790-47f6-970b-4055c334bc70","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":173,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"efa52293-897a-4606-94ea-e6f5fa057740","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":173,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"3f1a0fa9-cc12-4d31-a581-05b72181ca71","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":173,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"d1695edd-fed7-4e18-993b-df547a4c82bb","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":173,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"14896be6-472c-4c5e-b29f-87b8c703de22","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":173,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"a27de8b8-fd68-48d2-8f5c-195499b2220b","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":173,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"531ae6eb-b969-4d29-a5d9-79a50ef37fc9","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"04d59ed6-23f5-44ad-a882-8513f2228446","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":173,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"7b4abbb3-d200-471f-8f0f-d4fd131d66c1","block_type":"box","text":"within each applicable state.","page_number":173,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"05332766-c11e-4724-aef5-ef8db0d05f6e","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":173,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"b89218aa-c3d3-4289-a30a-b787485a5d25","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":173,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"2b6a3e21-aa86-4c98-a441-ff57d8395806","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":173,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"e1c81a90-3089-4c0f-91fa-7bcabb393eb3","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":173,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"bd0acf2f-188c-4a66-aa6f-d4448b610731","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":173,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"f5d4fad7-5ad8-4a00-a53b-0da0a9269355","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":173,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"d6e8a78f-7b0b-4fa0-b31b-094ca75c3e04","block_type":"box","text":"II-136","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e56bccdf-92a3-4df4-8fd9-a3769f76536b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55cd7353-5649-41b7-b566-56b6e47fe29b","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":174,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"c630095d-c9c1-40c5-9a13-97707522dcad","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":174,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"da96aa1e-1347-40af-874d-a18f598ce1cd","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":174,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"fc4efada-6504-402f-beef-53e8145d37ba","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":174,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"6956c3c6-2b22-44c2-8929-965e6458007b","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":174,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"c3ebf6e3-8503-4f56-8cdd-dbfee957a14a","block_type":"box","text":"exempt from state income tax.","page_number":174,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"524d869f-6a9d-44ec-ba09-c3b79244b974","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":174,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"f711408b-fcfc-4d8a-8b9d-480527da6032","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":174,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"e09089b0-12d7-4fae-8008-83de0fedf0d4","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":174,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"a47dbfa0-2802-46d5-b458-c31197382cf2","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":174,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"8d36e57c-3667-4375-b437-570ae44cf408","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":174,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"83865995-53da-4d37-ae9c-31d4feea7ed8","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":174,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"fa215ffe-1bc2-4dad-a130-52cd90cd82b1","block_type":"box","text":"decisions may have a retroactive effect.","page_number":174,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"c1c8d654-26f5-49f5-85b1-cfb92ecfbe0d","block_type":"box","text":"PERFORMANCE DATA","page_number":174,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"1907bf41-8ae7-4154-9cac-3d065004acd2","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":174,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"50450533-4032-491e-b31c-1a26ac192c71","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":174,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"65004935-8fa9-4d98-87a0-75c2beb8393d","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":174,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"0deb5499-fbbb-4da9-b004-b9479a531664","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":174,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"adc2121c-d7c9-4364-bb59-7d6e10c43319","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":174,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"ac77ef67-5d0e-42c0-a20b-9123f2f9f21e","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":174,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"97e49c6f-acd7-458d-9d21-81f911428055","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":174,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"d50f8fb9-b85d-4fc0-89f6-71e73d9503ae","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":174,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"5b10d56a-1633-4001-a177-3dab67e02128","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":174,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"256080b6-f7d1-49a8-aba5-fa61dbaf5d32","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":174,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"1e310dca-71d5-443a-8063-b811356334b0","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":174,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"50cf8b27-3a6e-49a4-9d5a-a06d859fb5c7","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":174,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"df04315e-2f75-48d5-959d-fbc64737d83b","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":174,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"a3d69dc7-00c9-454a-aa40-8c1be6267f36","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":174,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"29e9db32-0de8-4272-8d0c-c441d36ab8fa","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":174,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"1540f143-152a-4d1e-af08-03244347a3d8","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":174,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"0796ab3d-b6bc-45cf-8dbc-8756337254e0","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":174,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"f5d4c50b-7c82-4b0d-a09c-b8fed69d5bd3","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":174,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"8d44011b-f45c-457a-853e-03c8931f7e88","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":174,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"97ed32d4-3e81-462e-a923-c1e772e98957","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":174,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"0c83ba94-8f8a-476e-a643-1034db0052be","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":174,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"b27c02eb-d135-4a73-aae6-b13a3a5decdf","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":174,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"27bb27fa-dc21-44a0-a131-f8c23b151ca8","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":174,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"4701a2c4-377b-47ff-9b08-bae8b6acdb93","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":174,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"6b052fbf-06a4-44e1-ad2a-464a9099a1b9","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"85c2860a-04e6-4889-b6d6-0337c018f8fb","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"cd09f7df-3f03-4c29-abed-a1230972c709","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":174,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"700df9aa-3c96-4444-a7c4-0734fdfc680a","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":174,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"e82917e9-f0c2-45bd-9f0a-9c63a9e54f57","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":174,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"18a90dde-bbaf-406f-9a19-f233f8b7005b","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":174,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"a4ff4e5d-4a32-4275-96be-ec1af8a4560a","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":174,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"dedfde21-9a33-4a15-a3ec-8a3486401889","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":174,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"377651a2-0e99-48f8-bd38-efa4df296e1b","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":174,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"646bcbe8-08f2-486c-84de-422a7f811ec4","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":174,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"3f094120-393f-409c-b137-5dd73fbf1ffe","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":174,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"673a1206-7b51-412c-acf9-8b5a65516cfe","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":174,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"ec631f88-6255-4716-9d1f-3b8cefc3d87a","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":174,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"3525db33-7da8-4016-ac73-373f4a2c9adc","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":174,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"1ae7ad3b-f779-4277-828e-3b7d778470a3","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":174,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"666c9533-f9db-475d-a3f3-7bb6bbc6a425","block_type":"box","text":"II-137","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"99a472e0-2277-46b1-b2b7-7841c0393dbc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d7e8eee-c569-4c9a-b571-a349074afcb9","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":175,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"b84ebcdc-421a-4913-962f-f0f66aba4f25","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":175,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"104b7de5-2ea4-4d6a-9f12-3e6b3ca3d0f8","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":175,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"dc55f827-becb-4651-bf18-c50acd245013","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"2dd7e35d-5c77-4b00-ad1b-44d709515a7e","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"f8f1e6ec-1d5e-40b5-bb3f-199ba1ce216a","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":175,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"aa77edee-87f2-4771-a59d-ee69307a7ba5","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":175,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"97067e6d-75eb-4ead-9b36-0d540bc8c306","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":175,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"34f87633-638e-4063-bf4d-6aae4b7fa910","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":175,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"50c689e7-57a2-48f5-ac63-890f8a090cf1","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":175,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"fb610ed8-42b6-4161-8f7f-c729e0b2bad2","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":175,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"ac96230c-f0b3-4c47-a6ad-2eb5f8f346d3","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":175,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"da2e88e1-b94c-43de-a96a-99eab11a5c2b","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":175,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"4d925951-2ca6-460c-80d2-bd3f492f5686","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":175,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"cfa9d8e3-bbe0-48d5-b1fc-7dac481bb4e2","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":175,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"90d58b83-5720-4fd0-82a0-f90028417717","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":175,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"47f26bf6-e512-46f0-9287-e050318f475c","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":175,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"7c19768e-7f11-48a2-b08b-cba3ec788581","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":175,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"8abb00be-8630-4256-a83f-7666a0bdeaa5","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":175,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"a78746ed-4883-41c3-b79b-316c130baefa","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":175,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"ff787da9-c16a-42d3-bd9b-d715d13b6e72","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":175,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"d5c75e5c-9373-4576-82c6-98d1ab3e6a79","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":175,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"ebb2e93b-8c4d-41ae-aabb-b6b0be6d40c4","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":175,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"aeeb1074-e876-4251-bc15-80a7837ad1d8","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":175,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"1222f41b-9e3b-4663-8615-7d7a2ab03bbe","block_type":"box","text":"less than their original cost.","page_number":175,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"625c5118-62eb-455e-84ab-e8bdb4aaf6dc","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":175,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"1e3f54f5-fd10-44a1-84f1-34927207310d","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":175,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"afc38d2b-0a9d-4bf7-b08b-5116bfae1326","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":175,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"fc623876-fa83-40d2-a714-87f6c5a296d8","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":175,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"f7c6b653-a3eb-4334-9fc2-3e98b99c78df","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":175,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"4e4efc40-5bd7-4b4c-84e3-ba1269e9ce99","block_type":"box","text":"lower amount of expenses is deducted.","page_number":175,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"2136ddec-aa73-4973-bd5a-b953842442e5","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":175,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"6904bdac-3153-4237-8bb8-e0235b830d17","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":175,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"4544d296-58a1-4ba0-84dc-954ed8c79240","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":175,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"28120e08-c6f5-4537-8c7a-e11ad9a8f8ec","block_type":"box","text":"Money Magazine, U.S.","page_number":175,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"74966214-2d4d-43bc-96b5-d9432dcd1df5","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":175,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"10bf7128-f95f-4d95-9f58-fdaeee8e844b","block_type":"box","text":"or other industry publications. When","page_number":175,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"2e080ab1-390a-48b0-92c5-108b5ac3b744","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":175,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"931e9721-00f7-4a58-832a-fe5213bedf5a","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":175,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"c2e55bb7-0bbd-406d-9d7f-8619437cf643","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":175,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"1cd4f414-ba51-401d-8aad-fe79523417ec","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":175,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"113c19c7-4aaa-497b-8776-4180956d0fc3","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":175,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"01cbad8b-5737-4bf1-89fa-f1aa803dd07b","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":175,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"7379800f-3def-45fd-923c-95d555aefcb7","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":175,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"8dae6bb1-dab3-4a20-97b8-f16f7a655b4c","block_type":"box","text":"developed by Fund management.","page_number":175,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"581d493a-e121-437d-b010-d10afe9a471a","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":175,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"f2fd2407-ace8-497f-bcdc-f87a4bc89514","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":175,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"995b4629-40ad-44af-9d99-ea9b9327e67b","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":175,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"91f18747-dc07-4e42-a044-22433485541c","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":175,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"597742b5-95c2-400e-84d8-7a8b3fa0a096","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":175,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"210e2d53-e1e1-4ad4-9961-a29955f60234","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":175,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"fbed2eea-2117-411a-ad75-2e9ce94aa948","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":175,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"68ef245e-14f7-4747-a0ef-85b5a7e58b33","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":175,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"25aa0f83-1e4c-4ffe-93e7-01f7a66dc746","block_type":"box","text":"II-138","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cfc5c3e5-b96f-4c38-b089-216ee59cde42","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec2fdc89-ef9f-4539-aaa6-eb1d75fadfa4","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":176,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"3fc61978-2bd4-4a1c-b0fe-81840fe6e189","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":176,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"599eb6c9-9f5f-4c1c-b961-7f4b75c14df1","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":176,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"f7170740-8536-482b-8f77-2b6ec36b1d0f","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":176,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"1df467e0-9338-4906-8201-80c92fa062c4","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":176,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"ea49a68b-414d-4954-b397-c1c9f0082e3c","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":176,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"c96e77c1-34cc-4992-9540-0dcfac2ba955","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":176,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"d91d2573-af7d-4d93-8cfb-51a646c231e2","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":176,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"f7840515-c0ac-4c58-b19f-b35ce0c976d5","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":176,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"ce9b6e9a-2dd2-4d00-b801-67cdec6fe718","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"c7ddf0bd-d7bf-45b3-a119-2c1ec1aca227","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":176,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"2f36f70b-4a31-4a31-9e47-e741370d25eb","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":176,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"15000470-47f5-46c2-9b08-2a2cffea5fc5","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":176,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"c5fa8672-1d27-4d8f-94db-611f78f77249","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":176,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"40e49096-f25e-4306-b987-9841f44e5362","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":176,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"aaf3b4a3-e7c5-4df8-8245-f41854ed8107","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"1624fbd1-c72b-40a9-8e9c-0baacfef3ede","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":176,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"6790c542-4488-4018-ab0d-35d4734dc685","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":176,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"476f6d0a-186b-4d56-87fd-ee13f639fc74","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":176,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"5f1a2ec0-2d1b-4519-83fe-9251343f5cfe","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":176,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"e91bf8c1-e156-46ff-b8f3-588c8dd533f9","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":176,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"3d16ddb9-d147-4481-868e-5d8b099f1750","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":176,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"3e45bf8c-bdf1-4474-9ba7-df458916a93e","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":176,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"a5cf8844-c953-485d-9d69-f5049679dd76","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":176,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"2b06904a-3a2f-4f80-a410-a2d64b132d44","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":176,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"5439a7f3-c50e-4bc9-b049-dd23e363a4ba","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":176,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"c431e5fb-32cf-4d07-9bca-c74e551b9464","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":176,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"46c8d829-7f4e-4e54-853c-f8d2a52b022c","block_type":"box","text":"GENERAL INFORMATION","page_number":176,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"b80f4036-5a59-4b2e-804a-e9f1dfc8f1a7","block_type":"box","text":"Description of Shares","page_number":176,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"3bce798c-937c-4c20-a4a5-c2bd7777d919","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":176,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"1f470c6b-060e-4e52-bd9e-34e4e2d9766a","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":176,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"a0ee4212-eef5-48ed-89f3-fb7d3634635e","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":176,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"75ee3999-fda4-4df0-bcfa-40d9070fa12b","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":176,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"89bc49e8-10e8-494c-87b3-0467b7888efc","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"60a5fd54-d8dd-4770-b62c-9a88d29f55b6","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":176,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"d85e6ffc-c1e9-46aa-9265-b9865cf529cb","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":176,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"97db5c4e-7b4f-43c5-84d6-f8e5b5cb512a","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":176,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"7d91f4d6-804e-48ad-a345-97c1fa94faf3","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":176,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"1a6fda4f-30fe-4c6f-95a6-e27888473170","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":176,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"58742f4a-ba18-44cb-b033-a7ae0741ccf5","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":176,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"5033ae8c-be44-4052-8592-88532d79a551","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":176,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"76827ad9-0b7d-4da6-b5eb-beae356a536b","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":176,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"d8003964-97be-4c3e-8384-e1bda1a8ad83","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":176,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"64365bb7-c54b-491e-982f-3bea435dd940","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":176,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"46b96d5d-7755-4881-8b2a-81473c92052d","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":176,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"c7934b1f-7a93-477e-82f9-353baba5470f","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":176,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"0f563471-14c6-4e1e-91a0-3dda24063bdd","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":176,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"20a281bb-96c6-4eff-b9de-69fb08994082","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":176,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"ef133c60-19f2-47d6-9f9e-37e97f891520","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":176,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"c2fc9cc7-39b6-48d0-a169-930a5a4986c0","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":176,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"f561e289-b897-400f-8ce9-b8d3ac25689d","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":176,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"72749e7e-00d8-4816-885e-7c02c74d3dcb","block_type":"box","text":"II-139","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb33d072-054d-4d1a-8768-48bef6cfc8e5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b36300b-4eb8-406a-93c0-a6ecf83dfa79","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":177,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"939e037b-5cca-4c84-b105-e6ce02aed9c3","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":177,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"f3bb8f4a-f289-4bc8-a084-28edfb3ed166","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":177,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"0c1dbf0f-9d7e-4c14-a2db-ae228b99e1c7","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":177,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"8fb1eda1-2fb5-4baf-9b3f-5b66532ca2cc","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":177,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"f91a4719-07e9-4c3d-90d5-ed6e16dc0b4d","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":177,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"b12e0f5e-f508-4245-9b36-bc9e341a1d54","block_type":"box","text":"Additional Information","page_number":177,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"77576e3d-6ff8-4ebe-bd82-807704904a7c","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":177,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"79a8325c-edb5-4024-a26e-a08b50d20d5e","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":177,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"85208322-d16e-4264-9beb-3d88110a0f72","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":177,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"ae94beb3-f6b7-4d09-84be-06c1940c4f88","block_type":"box","text":"such name to any other company.","page_number":177,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"7576e784-a08f-4d04-a424-79e2d311d11a","block_type":"box","text":"II-140","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ce2d174-347d-4882-8fd4-a3785074e250","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38cf8113-b79c-4cb7-afab-3b7a69f5a858","block_type":"box","text":"APPENDIX A","page_number":178,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"387c4b38-34f7-4380-a94d-50e7ff06984c","block_type":"box","text":"Description of Bond Ratings","page_number":178,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"9306cf89-d96b-4c89-a2b5-4f7912e349a7","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":178,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"fac881c5-4fbc-4ab7-9daa-d7202d1906ba","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":178,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"1d3117fc-3210-4d97-afe4-2648235061af","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":178,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"88434e5b-0c3e-4acd-bee5-38b5f8442158","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":178,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"8418e3df-7497-4646-8618-f7f89410c8ad","block_type":"box","text":"securities on a particular subsequent date.","page_number":178,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"6789aede-baea-44e7-93b0-fe0cd4f509c0","block_type":"box","text":"NRSROs may rate specific investments (","page_number":178,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"7d80c271-17f5-4f22-baa5-d4b90fde2ced","block_type":"box","text":"e.g.","page_number":178,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"0b155825-d5ef-4398-ab2c-14a6374da121","block_type":"box","text":", bonds), issuers (","page_number":178,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"71e7e4ae-74e4-47f8-9fa3-d9d130524cef","block_type":"box","text":"e.g.","page_number":178,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"e7894a24-0706-43b4-bafa-0f77ad6c33c4","block_type":"box","text":", corporations, governments and financial","page_number":178,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"0ce18862-fdcc-41d1-8cbc-5787eb3998e3","block_type":"box","text":"institutions) and/or programs (","page_number":178,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"3141aae9-dcf1-47ab-8673-832f75ba2dca","block_type":"box","text":"e.g.","page_number":178,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"61179bc1-24dc-486f-bea8-b8398460a186","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":178,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"fcc9750f-a538-40ef-afc4-4fb910e385fc","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":178,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"2abd2c7f-0155-4c95-9ecd-b2f8e8ac7367","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":178,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"aee78a1c-6181-40bb-955d-2fa776854669","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":178,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"a6288e94-0453-484d-b443-048dd2a70d9a","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"a25ccb6d-8723-4b18-94f6-804d58975bdf","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":178,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"f4331cfd-6f90-4948-a731-5fb8afeb4127","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"7f5261e3-144d-47fb-bbb0-b60694d72174","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":178,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"95fd793a-8365-43d2-9fc1-e2740cafaf2b","block_type":"box","text":"security (","page_number":178,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"d93a1501-05cc-409a-9e67-30009ba62a22","block_type":"box","text":"e.g.","page_number":178,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"721f95b1-2190-4af8-8e70-f25d8e1ec3e1","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":178,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"6461fa31-019b-4251-8275-d81c310ad5d9","block_type":"box","text":"highest of the multiple ratings.","page_number":178,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"37a441a0-eb98-404c-bd3a-f4a1508f0309","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":178,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"1d2400f5-150e-4b67-a002-868b045ee559","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":178,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"42181acb-1063-45f1-8158-0c29a70ab5ff","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":178,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"07923f9c-d9d5-43b3-ac50-61234b78004d","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":178,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"a2f2d6a4-7b73-496b-811a-842e9d035aeb","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":178,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"587880f6-da25-417c-a8cc-dc09d6e1074d","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":178,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"98cfb0b5-c9fd-47e8-8e3a-6ff8db2c03a3","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":178,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"aba0a7df-8b33-4897-8947-4a38a417b797","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":178,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"ea4210b9-5171-4235-a2e3-125c650883be","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":178,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"e5bc98f3-4194-415a-9bab-c027218e1685","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":178,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"56b6b1c0-7ebe-4597-8fc9-23f14f8faf92","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":178,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"38e6ac83-e706-4967-8dd3-8b52c536f827","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":178,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"773713bc-1f1b-499d-a652-626161246255","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":178,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"8f6bc81a-33ce-407b-abf5-7dec91d385b8","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":178,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"1e4dc8d6-7319-4b2c-82e5-cdf6f76e44b2","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":178,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"b81f25ca-4b8d-4da4-9274-6bd4b5f17f05","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":178,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"df9aa219-c7e4-4990-bf72-71d8005e10df","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":178,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"95d27fdb-05bf-4467-ba76-31c1e3353646","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":178,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"bdb56e07-6f80-4299-b343-c351bb757525","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":178,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"094027e8-bff9-4414-8a20-48db5dc70a52","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":178,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"1daf53fe-8971-4ad1-afb2-0e16e03a52e1","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":178,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"1f55a636-51b6-426b-928e-febb5c0414c1","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":178,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"e87bd8a5-9b36-4fb9-a3a4-6aacc59fbe60","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":178,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"9bc1fdcd-8146-40ba-9b6f-8e246e423900","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":178,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"cb2998cc-f557-43c8-8934-8dc0d614a75e","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":178,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"1f1db20a-a33b-45f9-bdf9-209004482c18","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":178,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"b3ffbce5-69f5-46f8-b64a-bd100eabcd57","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":178,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"a704cbe2-e8fa-42f3-acb7-bf146aa364fc","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":178,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"ac79140e-ebc4-42b1-ba90-77b758e50ec8","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":178,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"98ea2540-955d-491e-99c9-1c72dde61d98","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":178,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"152ed976-d08d-4b3e-b468-0bacc7741218","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":178,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"a468d7b4-dc6a-42d4-82d6-6dd92c514874","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":178,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"2ef97045-106c-40e6-aaa7-869c54bbd96d","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":178,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"66cc50fb-ebaa-4151-abdf-5de2f8ce7ba0","block_type":"box","text":"upon standard sources of variation (","page_number":178,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"cc1aafbe-1c35-4f76-8c1b-f74cd0426129","block_type":"box","text":"e.g.","page_number":178,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"aedd89ce-385f-4df3-98c9-02afb663165a","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":178,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"a34e9731-b525-4289-bccb-5ea54c8c650e","block_type":"box","text":"A-1","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"89c3e96c-c043-4223-bb53-5b8a971c900c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bec6b4ac-a802-4835-bfeb-d4c2b28e1032","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":179,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"60c5de62-50b4-4be0-b7b7-9a2134bc0fbc","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":179,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"467b0d47-a8cf-48f7-8d68-e8447fe1abdc","block_type":"box","text":"e.g.","page_number":179,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"b7d9dd0e-7735-462a-98cf-2583f2d05d93","block_type":"box","text":", equity indexed), absent","page_number":179,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"cc2c6484-fb81-4402-addd-6a2dce10533f","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":179,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"7935b546-892f-4bf6-a2cc-c1f7cd86e344","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":179,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"74f95d2c-bdb1-47d4-821d-1e46180ef551","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":179,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"ec2ddbfe-0681-4cab-a6ed-6154f98620d3","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":179,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8530ecf2-5a87-4054-aa63-a300bb3e75b9","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":179,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"ebde039d-1567-431a-897f-8111b26a64ec","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":179,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"248532a3-96b0-4c50-9f7e-ba09cbd15784","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":179,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"0135ada8-5c2a-4a93-8d4e-c2fd9900f9c0","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":179,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"ed7ebee8-13e0-474f-a4c2-3b22ebb19e50","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":179,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"29dd1c0d-a365-4a61-80d7-4e37eaaecdfd","block_type":"box","text":"i.e.","page_number":179,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"81ef5da9-d5ca-478f-a7e8-1b68989fa8d6","block_type":"box","text":", ratings on nonfinancial","page_number":179,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"61a552f9-2971-4631-8e13-cfb5bbb55bd4","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":179,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"d68d0943-6fb2-42ba-a109-5a26fcbc7902","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":179,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"2a9afaaa-8969-40b8-a381-41052fef6094","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":179,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"8978cc82-c12f-41d3-868b-86140e4704d8","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":179,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"10e74bc4-8a48-4f35-9c24-c2bdc218e500","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":179,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"479d323e-3dff-4154-8696-14e2585b5d01","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":179,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"7e8f7752-42cf-406c-b2c6-9fda836a13d3","block_type":"box","text":"of time.","page_number":179,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"4005448f-07b1-476f-9a4f-3ebe465fa0c3","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":179,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"41b5d91e-742c-4da9-ac61-d1f60ed03dea","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":179,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"30c961b6-7273-43ef-83bf-2a0cd5b32a16","block_type":"box","text":"risk.","page_number":179,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"e1928513-bdd6-4a00-afea-1fbde1261e13","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":179,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"2b8a0469-e8dd-41bc-88ba-7c210f29690a","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":179,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"a590afff-0093-496b-8bdd-52f8730b49c1","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":179,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"bf2f6df8-e019-402b-95e8-ee127896515a","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":179,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"1a23bbb3-b8c8-4236-a653-d62d4ab895e5","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":179,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"c81c729d-96b6-4ef9-8e4b-a33256f64f46","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":179,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"500c3dd9-cfdc-42cd-be36-8ab77f40fd69","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":179,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"3d4e044d-e5ee-4830-8821-7c7e502212de","block_type":"box","text":"credit risk.","page_number":179,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"af5fd5a4-8728-48e9-8449-6ee954db04a4","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":179,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"cc5fed96-75e6-44e4-9783-6dc108d5ed54","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":179,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"334dfb62-cb9d-4a7d-967b-28605e89bcdc","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":179,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"b97df0de-5379-49dc-8a5e-1e2510a50d9a","block_type":"box","text":"of principal or interest.","page_number":179,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"6b821cc2-5574-4ee2-973a-dc5c51341397","block_type":"box","text":"Note:","page_number":179,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"ec2479f5-8ac4-4eba-92ce-74811e6ad665","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":179,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"f0a822c0-bd44-436d-8511-f31e184a9396","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":179,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"c4b0507a-e717-40fd-af39-6f511058993d","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":179,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"b664951f-fe84-48fb-84c9-c09c8b37f201","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":179,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"0b272e68-947e-4201-bb62-4498e1487491","block_type":"box","text":"companies, and securities firms.","page_number":179,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"11230656-03f2-4ac7-b510-c770857c5261","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":179,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"97438c5f-89b3-4328-b3bb-4648cbbae361","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":179,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"32afa9a1-d5dd-4d6b-8141-ac7da6f6ae3a","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":179,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"b5a9cf23-8be5-44fe-80bb-18374339a933","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":179,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"ae6a4a49-1936-41fb-ad07-f8f42fb43b98","block_type":"box","text":"that security.","page_number":179,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"5cf80742-0f6e-43ca-9614-8e78b548d7f7","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":179,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"9a8f5f5c-65bc-4aab-b1d7-e6ba1f154797","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"70751798-cd25-4e26-a243-572dfaaacfec","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"de950557-3c57-48ad-adb9-716a2e275d72","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":179,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"fd81ca29-6548-4854-96e1-fe72ab855f7a","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":179,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"d5d735d7-a4c5-452c-9cbc-64711de85744","block_type":"box","text":"categories.","page_number":179,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"c8d4c9cf-49f4-489b-9b3f-7cc5befbb1db","block_type":"box","text":"A-2","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ca1037a1-89d0-4dc9-a5a0-2bc32205b005","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c301331-15ce-4ccb-90b3-f1f167e78b24","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":180,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"460ab6ad-256f-406c-a2d9-07cc0814b8dc","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":180,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"b6117fef-657a-46b2-887c-b32b43ae3389","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":180,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"3d763ef0-70fa-4b48-b220-ca74e32f7d95","block_type":"box","text":"an issuer’s self-liquidity.","page_number":180,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"eb110325-ad9f-413c-b4fa-f3bfa62ceecb","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":180,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"d9eb53f4-af36-4044-b403-d95bbb654cf5","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":180,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"2284be8e-3185-4baa-97a8-3709c092b8df","block_type":"box","text":"MIG Ratings","page_number":180,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"5785dd4e-4a60-47f2-ae94-dbf275f4a016","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":180,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"4c5eead6-a8e8-4d4e-82fe-e6392e21216b","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":180,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"1f50f0b8-6197-4dfb-9510-8bda06139156","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":180,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"a11f2d81-59d9-4345-b433-759982e055d4","block_type":"box","text":"MIG Scale","page_number":180,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"50ddd085-7de6-474b-baf4-21c4e8cd9801","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":180,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"b1c2d214-bea8-4c58-ba3d-3ac688c9eb14","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":180,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"953fb09a-9602-433a-a826-503aaf709a04","block_type":"box","text":"refinancing.","page_number":180,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"b737851d-d966-4540-b4f8-2f5ed3d4267c","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":180,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"3f5737be-96f2-4906-83dc-8556f46e63d3","block_type":"box","text":"large as in the preceding group.","page_number":180,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"a8e27601-fa71-4d91-b282-a5043535f88c","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":180,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"76579935-c714-43ad-80d5-d4619e79f42d","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":180,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"8d80e47d-1c90-4241-b8ed-e12b8b1581f8","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":180,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"7dc78607-6ff1-4afe-b52b-f86af61632d9","block_type":"box","text":"lack sufficient margins of protection.","page_number":180,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"13312ee9-f0da-4c81-8d3e-898a74e884ff","block_type":"box","text":"VMIG Ratings","page_number":180,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"c7e32a8d-8a6b-4b52-a104-390ab4b88762","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":180,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"2b1e808e-0428-4b87-8e34-e48a006be017","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":180,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"276affef-fa1c-49b0-b65a-5dd8fcefc11d","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":180,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"eb2ddd48-2048-40b3-9baa-a0f472a1dc68","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":180,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"679b9a2f-09d6-4d9f-a322-a01ffdbea0fe","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":180,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"e70b3b0a-c973-4143-ae25-ff9d9b758303","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":180,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"ae9faa77-279b-49f7-9102-ed9bba594f80","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":180,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"51c806b9-fe51-42bc-8294-37ae2de943c5","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":180,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"9d278d87-1b39-44ac-b294-d4267febd354","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":180,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"6c735613-854e-4858-a25a-8c7d11080654","block_type":"box","text":"grade.","page_number":180,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"a27d178c-fb83-4cd9-85dc-e8429a7178b2","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":180,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"ad28006f-08b9-424b-90cc-9dc6ce391c42","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":180,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"998ea3ce-5dc2-4d4f-a28e-e4e16ec868a6","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":180,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"cd00df39-279f-4197-a5a8-febd70f0cd65","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":180,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"1f39ac2a-7bf8-4ecd-bf7e-fd99c5f820e5","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":180,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"f4408852-ea58-4d33-b965-a00747138804","block_type":"box","text":"liquidity of the corporate obligor.","page_number":180,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"32b821ed-0562-420b-9863-b9e50525bed3","block_type":"box","text":"VMIG Scale","page_number":180,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"c541d09c-010f-4a8e-b2ca-91774126e96d","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":180,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"cd17397e-a872-4542-a3dd-050b517020d4","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"34be3378-ba90-496e-a2a8-29891999927d","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":180,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"72228ab3-a28d-45cf-800d-dc4cba1a97c1","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"e30f5325-3734-4755-aa2d-c8bab4f5f9a6","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":180,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"5156675b-37d8-4216-9613-aa7089d08e88","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"3254dcdf-3cc5-4c3f-8946-e41e722912c7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":180,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"3c8dd7ef-d23d-4b99-8514-bb2aba2d2d42","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":180,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"9adf4c08-8eb2-4f20-83a1-962fd7044061","block_type":"box","text":"may lack the structural or legal protections.","page_number":180,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"a3f4084d-308c-43f6-9cea-490c0d0df7f7","block_type":"box","text":"A-3","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"87484834-59ad-4fce-80ed-8d3af9306472","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ae87b61-0993-4259-b32b-d2c277ead15b","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":181,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"9c6217b5-799a-4103-b505-b915b509d825","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":181,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"ff6130b6-205f-42fe-9e0f-924e81c2269e","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":181,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"47399a07-772a-43bb-8b51-b35e3a20d2b1","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":181,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"a7d50e8a-671e-4b7a-9f54-5a827872cd0f","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":181,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"d049a77a-9dd7-4bc5-bb06-c7c6248047cc","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":181,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"4a39f21f-52b1-40e2-ae4d-761c287f0c78","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":181,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"02147e2c-5f42-4226-b3e6-03eec73e0ac0","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":181,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"81ac4b7f-57a4-43f0-a05b-a05c525817b8","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":181,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"2ca00d78-2bdd-4210-bb95-1cf7c9ede4c8","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":181,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6815a68a-096d-4ca9-a096-213c3217c531","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":181,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"f4543e22-6185-4e5f-a791-d8ef97503dd4","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":181,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"adaddad8-6828-49de-867c-3e547a1f2147","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":181,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"066ca508-106f-4c0f-a050-3bc11fc60ddd","block_type":"box","text":"from these guidelines based on market practices.","page_number":181,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"a25c8e3d-7e8c-4425-8e2e-27cae1fc788f","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":181,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"b2c279e5-a244-4ff9-b505-e45097a4f3a7","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"f7cef06b-455c-4250-90e5-04d1007a0c67","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":181,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"0bc755a1-06c1-4e21-a8e8-188b9dcab191","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":181,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"ad57fc2d-bcd1-46a9-aad2-66417403e498","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"7377136b-87d6-48bf-b1af-2c41a64b3258","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":181,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"a61fa38a-326e-4ec8-a813-6996f5f3457a","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"9f2c61aa-60eb-4dc4-adfd-612b35681964","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":181,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"fce93128-5297-417f-af36-748af76e1b3f","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":181,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"4831cb21-e9f2-4a9e-8c52-c0f8f53e9ea3","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":181,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"08e7f00b-0a57-4c1c-b24d-b8fc9c8fa2ff","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":181,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"d55e96a6-1aaa-4b83-99f6-72c08b08b96c","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":181,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"8364348c-9218-4138-898c-ef605a833290","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":181,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"a42d9174-cfe8-4e23-87e9-4c0e63bb4999","block_type":"box","text":"obligations.)","page_number":181,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"9ee38c3f-194b-43b3-b104-dee474a419e7","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":181,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"265a102d-f9d6-48a3-8ef6-65736a040eed","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":181,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"a3c9592a-0acc-4979-9c62-674997bb19df","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":181,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"c70f6dea-44bb-4575-9744-2815de657207","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":181,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"b1b802dc-cb40-4ff3-8f3c-a02ee13011df","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":181,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"14fd099a-ad0a-463b-9432-0c70b95d32a4","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":181,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"52545ce4-9000-46a2-8a54-7e67f4a6312d","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":181,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"7399205a-c8ea-44d7-9ea1-2b8b8e60862a","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":181,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"43ff0d8d-816b-4952-a09a-61a1372844cc","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":181,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"2d3e212a-0e1c-4434-b1fd-cc24de7ae691","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":181,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"eceec710-98ee-4615-9d8b-2b040d24afb3","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"e2802714-6a0c-49ba-8f2b-01229c4c8123","block_type":"box","text":"BB,","page_number":181,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"31990fd4-69b6-4591-b291-566b18c7dcba","block_type":"box","text":"B,","page_number":181,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"a489f7d6-da51-4f16-b978-2b982ecd2da9","block_type":"box","text":"CCC,","page_number":181,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"1bf20816-d055-476d-b97b-b584745c4700","block_type":"box","text":"CC,","page_number":181,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"f2eb247b-7c70-45b3-94e4-2830095a4284","block_type":"box","text":"and C","page_number":181,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"4dfc6c15-0a40-4f6c-9091-8960a0b8a535","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":181,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"edece389-93b9-4dd0-a9fb-20d7c19f5844","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":181,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"d16c0d79-7cde-49f5-94d2-aa174d86562b","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":181,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"cb425bfc-3c41-4b9f-861b-73844ee785be","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":181,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"d2d4fc12-3428-4e48-a585-5fcb1783d20e","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"9c6ed887-3fc7-4ef6-b4b2-50ed3db6247e","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":181,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"8ee94fe1-98b4-4138-9928-3a1acf076bc6","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":181,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"5eeba2c5-8446-49cc-8cbc-1d9ce5c73501","block_type":"box","text":"on the obligation.","page_number":181,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"7edab3ef-0bc4-4ed8-b9ae-99d0c1d2d3b7","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":181,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"264558c9-15eb-45d0-b67a-cf822831ca1c","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":181,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"aade21d4-e6e7-41c8-bd03-1d89ea87a247","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":181,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"1201111d-8ab1-445d-be02-08356fce4d2c","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"f7f2fbed-512a-48a2-b8d5-62af1e3bfb9a","block_type":"box","text":"A-4","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"bd95fd07-6c08-4d15-8f22-9195e2410573","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d752cfa9-ef9c-4786-bc97-bb0b9921ee38","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":182,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"d06d3228-8b42-4422-85f8-378e7fb170ec","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":182,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"c54b37e3-8944-436f-9cc5-24380a87e756","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":182,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"c3dce9ec-c827-4ba8-b9ba-810230085700","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"61b55b81-d308-4b5b-95ba-472dec6054d9","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":182,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"13061ad0-f391-4845-a8a9-7dcbdd1cd082","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":182,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"2deacbfe-94c8-4ed0-ace6-105fd6f0751e","block_type":"box","text":"anticipated time to default.","page_number":182,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"a3dd06fb-cd46-4591-aba0-c74ee8702d62","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":182,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"8a1c84bf-e99a-4f72-9868-c6db125ec4a9","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":182,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"5214e9a7-c043-4068-9c0e-4e251e716a00","block_type":"box","text":"higher.","page_number":182,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"49fba64b-afcc-438f-bcdd-1ba2c22a075d","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":182,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"2a84c55d-5b05-43ad-a2d0-5b0638fc28f8","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":182,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"2aa7118c-1f53-4fb0-bf02-1a43f36e1251","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":182,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"ce5d660a-6316-4568-82a2-8adc304ee0f3","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":182,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"76c843f6-aabf-4f21-8885-ef59adda6123","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":182,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"bf53175c-16dc-490f-94fc-cd7b7cf62f95","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":182,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"e3a8e41a-be18-496a-9e57-d5bf793af3fa","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":182,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"9e50821f-9a0d-421f-a62d-7387c5cd26e2","block_type":"box","text":"restructuring.","page_number":182,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"d44e727f-ef8b-45ec-8280-232071d80ab0","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":182,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"66ae2be1-2af1-4716-86bf-bb71dc9909a5","block_type":"box","text":"standing within the rating categories.","page_number":182,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"b96a6766-39f5-4833-9ce3-87a0e2774ff6","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":182,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"7091bc0e-30e9-4a3b-bcfe-9421a846933d","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":182,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"10340547-89a5-4b0a-afa8-ed1cc569821b","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":182,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"9c24e49e-9a2d-4753-a60e-79b3bc2e94eb","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":182,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"61ea15c0-ea52-4693-a376-83eef1e7bd84","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":182,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"fb7a4837-bcfb-402f-a873-3a2bc5071faa","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":182,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"19de61a7-7ec1-415a-bc10-690217c2eb9c","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":182,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"69b68454-433e-4f28-aea4-157cfaef43f8","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":182,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"572362c4-fa95-4d11-b4c2-d8533706fe60","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":182,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"abafaf78-7d20-4b0b-a95e-bb349c37d992","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":182,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"88ff3866-4d7c-44cf-8b8d-5421c9416f1a","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"26b58511-cde4-42d0-811b-10c03e245e19","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":182,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"366f1018-3679-46f3-a501-e042f771db29","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":182,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"e1abd535-23c5-44cd-add3-56dea00052d6","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":182,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"6d7a5d55-81b9-45d9-9aa3-ec7890869e8c","block_type":"box","text":"financial commitments.","page_number":182,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"5cb061c4-4b08-49a1-85c1-528327e8540b","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":182,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"85393376-b52d-470a-ac46-0f9a39b44e50","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":182,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"165adb78-1edd-4fd9-a38d-44913e4ff26b","block_type":"box","text":"commitments on the obligation.","page_number":182,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"8ab40ab1-7fff-4ca2-b439-99e87f36d0fc","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":182,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"3fffadab-e255-4e8b-a555-c1746d69cc78","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":182,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"1780f2d5-15ff-4821-9b22-443d8d160d2b","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":182,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"e1f7185a-51a8-47cb-a475-8c6ccdfbbf84","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":182,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"5f5a7074-81bb-4e18-9d65-180b28d65a55","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":182,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"8eb950b2-5b32-4189-8198-cb3e6faca819","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":182,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"0a35391d-3e57-4a95-898c-a359cd6c1b9b","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":182,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"dd71c598-3289-49dd-b0da-73134633d4ed","block_type":"box","text":"debt restructuring.","page_number":182,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"716a2466-d2b5-4b2e-9bb6-0c30fa9d6539","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":182,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"296e4611-c118-4745-8df4-68940cf8b520","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":182,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"93695187-3a0b-4c50-bc39-e3c6fc5eb7c8","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":182,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"48056739-ec09-4c64-9887-17c4630c84e9","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":182,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"ac99dc13-a1ce-4681-b607-d5571531e9ac","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":182,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"1e28f1fe-b6ff-43e3-a1a9-27e876dfab3d","block_type":"box","text":"A-5","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"3c341575-78f5-4c6e-96ab-601638036964","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"640c65d9-210b-466f-8428-487a7b4d557e","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b526a2e2-a24e-461f-8a75-0631ca58c58a","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":183,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"7719aee8-a969-4f84-8a73-19dc235461e7","block_type":"box","text":"as a note; and","page_number":183,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"fdb4337b-37ad-469a-8e59-123fb260ae3a","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"52c7c041-5f2d-4511-9bbe-0074d4c1bbc4","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":183,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"3d9d381d-3c3c-493d-a905-3283c0a176cb","block_type":"box","text":"treated as a note.","page_number":183,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"427b1a7a-1abd-40e1-a457-e47e0643a625","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":183,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"5ab58ca4-297a-4803-bc01-80796eee7ebb","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":183,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"fcf82028-1525-4f3a-b994-1f007d33274e","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":183,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"8c00c70e-bcdf-43ab-b8f3-9d2a3cc30785","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":183,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"8bef1a3b-935b-41f1-b5e9-cb1ec0426d2e","block_type":"box","text":"economic changes over the term of the notes.","page_number":183,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"0b8477ec-3f23-47fd-a5d8-4902f8adb497","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":183,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"9765b720-9974-470d-8c23-34c5ea3e33f5","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":183,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"52be0cf7-fcbf-4408-8e66-db6bfbbb4e6e","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":183,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"98a87be5-3abf-4bb4-852a-96b0da0fcd52","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":183,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"18b7159f-901e-423b-a58c-4784a10a7c8d","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":183,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"75391c88-add7-4364-a08e-43050495bfad","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":183,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"e5c20be7-a69b-40e3-938b-f8f042c19e7a","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":183,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"ae05c8a6-944b-499a-957e-97bc42f36d35","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":183,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"d641ab27-943a-4bf4-a541-fc8443a4d095","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":183,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"f29239fc-6eb7-4b4a-ab93-367e181dba83","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":183,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"d71c055b-7087-4185-851e-ed0080801129","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":183,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"962ebfbf-a9ba-4a71-a0c6-18ddd4f70352","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":183,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"86e8ee49-6d51-4db5-8f5a-ea1cda4ce29f","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":183,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"7f425ce6-4bc3-4935-b75c-540e78aa5a9d","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":183,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"ddeb0cc0-dae1-4385-a407-2eb2de232acb","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":183,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"d83c8b95-2a7c-4055-932c-8d6aed9042c5","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":183,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"3676193c-13f6-448b-9df3-bca7c0f44721","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":183,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"2226cd8d-6ec8-4bb4-b2eb-8a36e50d02d3","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":183,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"01ac9535-66c7-493b-9443-4861f7f23756","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":183,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"c74e5691-dfbb-4f5b-aa47-fed7c43bc619","block_type":"box","text":"receivables or other financial assets.","page_number":183,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"ba26983c-e914-4658-9388-74c8f704167b","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":183,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"cd1dfc55-dc46-49c0-9b60-936f34f16213","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":183,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"db32511b-2d38-476e-b481-fa9dae7b1b0c","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":183,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"a96e2507-957e-4533-8a12-a15e28ca470f","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":183,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"4fe8fbdb-7b41-4ea2-8aeb-c41bb0ef37d2","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":183,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"5437102e-e38b-4035-86c1-85c53f743570","block_type":"box","text":"occurred.","page_number":183,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"5539e322-7424-4d59-b691-4c6d6934c205","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":183,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"ea55e0ef-7d30-48c5-a385-e400104ea997","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":183,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"0ae69116-75ee-427c-84b4-5d649a62ab76","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":183,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"1e897b98-2ab1-44a3-9587-2ef9df2e149a","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":183,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"fb89aabf-a3e8-4bf6-894a-2a9b22d0447d","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":183,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"6a728a83-2a2b-49f9-929b-9dd0986ce621","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":183,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"588854cb-2aeb-4c60-a241-47d89479006a","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":183,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"957637ba-8479-4671-9b5e-1e576b9c033e","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":183,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"5a7bf825-f96d-4e60-8523-5cdb609db721","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":183,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"2e07b259-1933-4dab-9087-29220c1188f6","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":183,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"18fb4049-00ee-47d4-9c64-9a2e6e8aa113","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":183,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"1764b06a-cf86-4cd9-aa27-b8f67c53ff24","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":183,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"623001dd-f2fe-4bb0-9886-496d88ac297a","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":183,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"82ee4f7b-e34c-4828-a673-5600e69c8725","block_type":"box","text":"i.e.","page_number":183,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"1321f7f8-1c63-4f43-9bc5-9fc47ff16106","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":183,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"8b25f97c-a284-4ab1-9ce4-8cc5d8fafb1b","block_type":"box","text":"the obligation’s documentation).","page_number":183,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"000d6770-5a2e-429a-b984-cf2cd8bfd3ab","block_type":"box","text":"A-6","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"fddd8c89-9cbb-45c8-96fd-5e6125229393","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41f18e90-f178-41cd-9ece-e9b7a4835444","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":184,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"3a573761-4caa-4af1-8284-58046c56356a","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":184,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"70b54f84-3d05-44d9-91bc-f9b9c42551ea","block_type":"box","text":"agents in the form of a rating letter.","page_number":184,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"3fdc2c45-709d-4de1-8280-214535a5c05c","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":184,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"44dbba97-991f-4156-a74c-94762be95951","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":184,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"a80f385f-e58b-427a-bc42-2f9a0b3a8c8f","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":184,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"6ebfa9c5-203b-4565-93ad-367177c7e851","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":184,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"9343f70c-5798-4205-bfbe-40106e613e4f","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":184,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"a0177135-616a-4592-b5b3-e74bc27729f3","block_type":"box","text":"e.g.","page_number":184,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"40236aed-975d-4ce2-83a4-bf03079e7db0","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":184,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"05ff133a-bf70-45ec-be89-63807ab98b41","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":184,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"365f00ab-c2fa-4e25-8526-56725401f7f6","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":184,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"815b6cbf-27d7-49a7-b484-758ae21455b0","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":184,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"15adb316-0f90-4774-a30f-bf2b2c0f9884","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":184,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"f097df8e-fa9e-42b4-842e-4be89de19362","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":184,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"d77ca981-2fe7-4d31-a277-7bf18ef82702","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":184,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"395b6045-6e66-424b-91f6-ae1883d94385","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":184,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"1218d4bb-b834-47e1-b343-85d0e3edb89e","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":184,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"6c35e903-7706-4865-852b-0e0788427e77","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":184,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"6b9757e3-b0c3-4e74-9f2a-3137d3cbd945","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":184,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"d61a061a-aa59-422c-ab7a-1672fcea2999","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":184,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"89af355b-a321-479e-b1c7-f00d2d86a8d4","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":184,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"c6cedca5-39db-47bb-9cc0-3eabe5dfaeb1","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":184,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"3985b654-c32d-4515-a6f3-ff9bf39e159a","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":184,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"0f935a0e-3e69-4ed6-9334-1a1cb4001ce8","block_type":"box","text":"Ratings.","page_number":184,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"688ef238-3927-4ce0-847c-648010a87520","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":184,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"3ba79853-8ae1-4114-ae3e-ae105725cf52","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":184,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"54cd49f5-f4dc-4d36-a46d-0cb60832e53e","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":184,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"9b7ebd35-a5a6-481e-9435-18bff9088644","block_type":"box","text":"obligation ratings.","page_number":184,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"7ab52a86-2df9-49c7-9e55-25528be2c092","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":184,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"16923a19-5be3-4bac-b2df-7510faa45e26","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":184,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"49a33809-4b23-4c7e-8081-ec2390200b37","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":184,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"47e294df-6108-4a50-bc88-3f2b3b715b40","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":184,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"4f50967c-a43c-408a-bea6-ed2dc5bdcc99","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":184,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"7c4b1c31-c343-44c4-9016-4c367eba7e23","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":184,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"7d30a1d6-4130-4e47-bdb4-9ccbb3723ba8","block_type":"box","text":"to foreseeable events.","page_number":184,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"23bf3b25-c40c-4ad3-9169-e909518c1c7f","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":184,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"987bbfb6-8f84-4d47-b98c-a3c0755a6117","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":184,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"7892d202-a98e-449f-9488-3627ea41bc5e","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":184,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"d08fb345-72b5-47f7-8f0e-4db2ecaa7b84","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":184,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"dc8a9286-8d0a-48a6-9c4b-56dbcf8a86f4","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":184,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"4abb3d74-f24b-4dc6-9c0e-63db813b9706","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":184,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"110e29ee-1062-47de-a7d1-280dcf0f40d0","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":184,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"7fe024dd-8eda-457d-a81e-fdabc8e3eac3","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":184,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"eba31698-4e49-4779-a88c-f557459b19af","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":184,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"05a12e49-8c25-4355-a916-01e4b5f52e17","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":184,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"03006cea-c0e3-49d9-a53b-1482788bae56","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":184,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"6abac72f-650e-4f6e-9c86-310583ec0a71","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":184,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"7c8bf799-26b8-4e21-8c7b-b1b45de99c7d","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":184,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"f841ad7d-72f7-47e1-bd46-8a044e35dce1","block_type":"box","text":"possibility.","page_number":184,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"cb9c5491-1155-4dc5-b74d-ba51248d0d82","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":184,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"61a49f5a-13cc-4565-b857-bc198c0c62e1","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":184,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"f34b8c44-1245-4041-8eaa-d1c98295edb0","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":184,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"8ee5adbd-985c-4790-b218-488d4d3f9ee1","block_type":"box","text":"A-7","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3090c60c-a83a-4405-bf68-e4f79064d41f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90d107d7-48c8-4daf-b098-f203867e2d1f","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":185,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"4eac3a25-8a4a-470e-a1a8-72a23234c2fc","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":185,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"d70d3b92-cbdb-4d2a-bc93-3cb5bf5e0ab5","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":185,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"124e0516-ddb0-449b-856a-cfba94b32244","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":185,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"397ced60-23ca-4e63-8487-c057c3e8846b","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":185,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"0d374ac5-5703-41ec-8e2b-4bca3d5d09d9","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":185,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"d0532550-39f9-45c8-be3b-420d9da87ad1","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":185,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"90edd37e-514a-4cde-acf7-a2e1776af2cc","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":185,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"8d10d06c-5200-4f06-b704-8f5eb960a447","block_type":"box","text":"relative status within major rating categories.","page_number":185,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"711a7823-4b0f-4c2f-a11f-e5fdf04df1f9","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":185,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"341f70c4-ee02-4783-a42b-fbeb9e26a008","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":185,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"b7f2ead1-df2c-4c64-87de-a857b6ba7acf","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":185,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"4dbacc2e-a4c3-4aec-93af-e81523f4df51","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":185,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"c9b5cb49-9b65-4532-b082-fb59bec3b824","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":185,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"7706e724-c362-4151-a863-41a5e2d67043","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":185,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"7906c96e-ada0-4090-9114-bd927738dab5","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":185,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"38ff09dc-f223-4ac5-814f-9343d2ac18de","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":185,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"bc5f1444-2cfa-4c58-9754-4f40103219bc","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":185,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"f58dd8ca-a0d9-42e8-9fa2-5bcff2abcd0a","block_type":"box","text":"finance markets.","page_number":185,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"36cecadc-af8e-4d84-b62e-0e5dc2f3aa9b","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":185,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"81c61f6c-44f9-4413-82f5-8d8afd73f16e","block_type":"box","text":"F1 Highest Short-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":185,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"7da0ac55-9fe7-4423-9fef-9e1bed97eb14","block_type":"box","text":"adequate.","page_number":185,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"d5a6a4e6-271c-4cfa-826a-66cd3b226084","block_type":"box","text":"B Speculative Short-Term Credit Quality. 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to the","page_number":186,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"4133fc00-8543-44cc-9b43-2b62e9b7501d","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":186,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"194a98ab-43d2-4eb5-93ec-50463f080662","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":186,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"db03536e-50f7-4120-8319-599fc9d9caaf","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":186,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"8dbbb8b0-bd97-46ed-9a34-1461f52105d4","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed 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companies alongside and on behalf of those teams when appropriate.","page_number":190,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"760a70e7-ee19-445c-b007-48e0bbbad9a7","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":190,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"570db87b-23d1-4306-90cb-adde9578e83c","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":190,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"14ab9038-606c-4184-873a-81503773f110","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":190,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"808caefc-4911-4e3d-9ab8-e80fd4051ae5","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":190,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"8b7c17ff-97fb-43ff-a144-9c1e1d18d133","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":190,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"5a2341b7-05c0-459e-9c7d-f66a8ef160b5","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":190,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"3f6e6325-7f75-4ffd-b55d-640847f61cc5","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":190,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"b9de5fd5-1c6d-4347-b2fc-6f54f54f1d50","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":190,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"0e43f553-944c-46fb-98bb-c82c3e12c3bf","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":190,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"6f252807-82c2-4ccb-8d1f-f037b1995450","block_type":"box","text":"1","page_number":190,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"73e7bdf1-efce-41a0-b495-45255b7b7f1f","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":190,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"13de65ad-b6c1-45f2-93d7-0a859dd7876d","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":190,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"45bf1af7-e388-4455-ad8a-9a63a1e2c95c","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":190,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"4a9b15cd-2322-469c-93c8-9fb4bb00eff9","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":190,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"c58dc646-1451-465f-a0f9-c1de34a60986","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":190,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"e0d7906e-f40a-4902-a1e9-572ba0130ecf","block_type":"box","text":"2","page_number":190,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"3f1f4842-43bd-4483-8ef6-3329577e5366","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":190,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"d68ca125-cd06-4dec-a9ce-639fbae82934","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":190,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"27f15df6-50b6-401e-a684-60f48bd8cb79","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":190,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"bdada1e5-259d-4074-861c-8fae7e000c13","block_type":"box","text":"policies.","page_number":190,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"268176cd-f99e-4335-beab-2393f829d03d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7a1e6885-7373-4266-941c-584532b09566","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d47ab662-cacd-4b19-bcfe-63dc40512ca9","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"802db5c1-4bbc-431c-b8f6-bab696d923de","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":191,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"5d77759d-9998-4916-91fd-1c20faf6817d","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":191,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"5c96d7ac-4542-4d71-b46f-057c55c52063","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":191,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"1a570cdd-2f49-4395-bcad-ac8a912e0485","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":191,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"543fc627-2ac4-43de-a977-3559c11a1dee","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":191,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"a6b0754d-6319-4185-8fca-f10e4a34dbc3","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":191,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"94f37eb7-0b34-42dc-813f-d3bfaee7c63a","block_type":"box","text":"this work with research, data and analytics.","page_number":191,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"06d43f9e-db39-4a5d-89ff-60217d5d3d29","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":191,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"d1bfa474-52bb-46d4-a927-6feea1f2c092","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":191,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"54359033-8382-4ac7-ba31-69dc7e95958b","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":191,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"25aaff5d-d381-42e1-b858-6f56ea966220","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":191,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"f713a021-7985-492e-99a9-b8cae4726755","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":191,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"aa193ae0-7725-4722-9cc1-c2007f31b04e","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":191,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"5770fe5f-71e7-4c14-9dab-9a82447dbde1","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":191,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"19eeb781-c9d4-42b3-a661-55684f75a540","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":191,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"8e85204b-e7c6-43b8-a1b4-64e1b2907e4a","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":191,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"be3c607f-df2b-41c3-9305-c4871893569c","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":191,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"f6d75cd1-11ba-447e-ad6d-db45afa452be","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":191,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"0f4c754a-339d-481c-84f6-a932343e2510","block_type":"box","text":"shareholder meetings.","page_number":191,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"39b5ad60-8ae2-48c3-a0f6-68e4abc379d4","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":191,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"dbebebcf-16d8-48c6-8ae6-5072e9d4206c","block_type":"box","text":"investing.","page_number":191,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"bb322b8f-2400-490e-9da6-df6ec74afede","block_type":"box","text":"3","page_number":191,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"e9c4d0b8-98f4-4a1e-9574-9b41caf02f43","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":191,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"01abd573-50a2-4650-b9ba-3b716fac510a","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":191,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"a4ff6a6b-8281-4ced-99d8-e70b44eb52b4","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":191,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"a10d9b5e-afbe-4fc0-bbb0-147e727effc6","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":191,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"dabcbd2a-8be1-4ec4-96a1-50cac557e0a9","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":191,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"23f61593-90cf-4448-bd78-83e9a02c0bd4","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":191,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"bd184681-1e2c-4c2a-866a-7026536d6a82","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":191,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"f0c966f3-28fe-471c-a026-13ed7a1e07f1","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":191,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"71067c08-483c-4085-b10d-e7bd501d9a02","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":191,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"26a80201-026e-4205-b095-2364a840815b","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":191,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"bd32b907-fd49-484f-94cf-cb2c2a8db457","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":191,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"888caf63-c585-4e1d-b98e-efe1dfa370e0","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":191,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"3aed4f38-c423-4aa7-ae68-22243d47e75b","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":191,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"f11b5126-0e1d-406d-b537-1b92ce6ec40d","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":191,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"b63569f8-07a7-4393-b3ee-e8d289904f51","block_type":"box","text":"management teams and board directors","page_number":191,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"8e1fd7f6-dcef-4bde-b767-50fe18a4fba7","block_type":"box","text":"4","page_number":191,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"2b6a71fc-d225-49f3-9f4e-307466cf8f48","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":191,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"92e312d0-78de-497b-821b-d3ce951eb7f8","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":191,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"62a15908-8c76-4032-9b74-15f2facc0a79","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":191,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"eef74f99-834f-4a99-b0c3-99bdac4b1958","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":191,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"d7a4a4cf-7d28-4bec-9fbd-3133bc2daf01","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":191,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"91de5afc-8f54-495c-9a7d-39b5dbe18eaf","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":191,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"a5d8453c-fe87-4d1f-9a26-1769c9dbc86c","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":191,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"5449f546-0a63-4636-93bd-9ed1c4f39e29","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":191,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"b1152784-ef7e-423e-85dd-93476a037b66","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":191,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"57a0b414-da20-4398-b019-466926dc6317","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":191,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"851eed59-15c2-4861-b6be-f220a99d4918","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":191,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"f776d660-c577-4209-ad24-f8b3bc294853","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":191,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"a2cdcb92-4731-45bc-8215-40d99baff9d3","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":191,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"7a391810-e67b-401e-8886-2c22f12ffb7e","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":191,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"7963be4e-e94a-432e-8ad9-d98143770b51","block_type":"box","text":"3","page_number":191,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"75af5148-5677-4ba2-b7ec-43084f1324b0","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":191,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"86a98a39-d98d-4cc0-a0d4-5f925e831922","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":191,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"48ed4956-b568-48b2-a547-6f2bdea3b99d","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":191,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"f37be96b-a014-4969-9b62-a5408a66b1c3","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":191,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"67c5be12-ed76-4a55-aaf2-9b2c8d25512f","block_type":"box","text":"4","page_number":191,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"4cab8cf1-c801-440d-a95f-ced0e3108a40","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":191,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"5c698653-98b2-4d13-b314-239ed109167c","block_type":"box","text":"boards and their members, where relevant.","page_number":191,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"edba9a0d-c1b5-4e05-8051-74356fa8fbaa","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b1db604b-a8a0-44fb-9c99-a3e813c1aecd","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"680841da-bfab-4427-be26-dd9f973cfd6e","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59d5bbe9-69a4-4753-a6f9-b9c25081ae74","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":192,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"99ee1b7e-9fac-4f6d-ae62-a1e00739dce2","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":192,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"cd8410ef-b875-4663-ba57-cb3fc2e16b2b","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":192,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"886286db-d139-4440-bd1f-742dd47e1299","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":192,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"b4087325-33cc-4f12-89c2-db31887869c6","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":192,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"77b8e72a-9d33-4533-a5d7-256f6a682b8f","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":192,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"58a6110d-8f67-4039-9eba-7eb19d63370d","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":192,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"2bd4be87-6105-4cdc-b4f5-b7c360a4ec32","block_type":"box","text":"5","page_number":192,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"bedef5e7-ee16-4a73-bb43-9f0d78a396c4","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"7d640415-4805-4b44-b01c-8865a9894579","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":192,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"53605333-0db6-4815-b723-de9d2fbceeb9","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":192,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"eeb1fa42-f284-4c41-be29-2e8e0da54922","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":192,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"4392e922-c65d-4d52-9d8b-fc9bcf953936","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":192,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"b7feba27-749b-435b-9353-ed24ee589e06","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":192,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"6246b3a6-2cf6-4403-bb2e-5e82735766ff","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":192,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"83d70c94-7bdb-4888-941d-480b2aad323d","block_type":"box","text":"5","page_number":192,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"73eb9eb0-1182-48e9-871b-1759477d9c09","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":192,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"e5276c74-5dc2-49fe-9207-0a5aaa8d046a","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":192,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"47e2294e-6abc-4121-843c-4d56ff2d08d9","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":192,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"1abbbc04-8062-4f8b-993d-648fc4161c03","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"14d81c1f-d581-4dc4-a2bc-edb21e063e63","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"4bb93f38-bd43-4cdd-b753-81c5d2c937a4","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0bd6eae-30ef-4603-a7e6-2f79dfa1bf9f","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":193,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"93bb5692-980d-44f1-9061-3bf87b271435","block_type":"box","text":"Roles and responsibilities","page_number":193,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"833bfcb2-a281-4701-83bc-441e92a2b6a6","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":193,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"7f0882de-2bb7-4c9a-a9d1-03ad8b57e0ec","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":193,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"6f295e39-5c8c-4ce3-8566-572758fdfbdc","block_type":"box","text":"6","page_number":193,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"3678d273-9b6f-41f5-860a-ae84e579fb39","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":193,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"e68aa3c6-4c9c-442b-a02e-15bfd755be2b","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":193,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"716618bb-47f5-4aac-97f1-092974ba66db","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":193,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"d82aa1e2-70bf-484c-996e-5ea731a58de8","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":193,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"2d3780cb-e76a-4d97-b636-fd5e2bef9c85","block_type":"box","text":"performance over time.","page_number":193,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"6a7c03f4-3e2a-45d7-bdb6-c72f88804c3d","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":193,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"eb985a21-58d3-416d-81a1-b60ea44ce460","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":193,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"7f6932ba-0807-4d38-a9e4-6bdd2489d62e","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":193,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"92e1826f-f9f3-4f60-b794-d4a01ce2d280","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":193,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"3e8f27d2-5d86-4025-868d-262ad8036b04","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":193,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"195c2f02-5736-4e20-acb2-9eac987f9716","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":193,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"ebab312f-3fcd-48ea-a08f-35e09b47e67f","block_type":"box","text":"Composition and effectiveness","page_number":193,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"cf55986c-f900-484d-9535-3adf8690b22e","block_type":"box","text":"Appointment process","page_number":193,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"f1e60ccf-da1f-4147-bc5a-d71f1a2ba4dc","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":193,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"c1ec7040-b884-4200-a796-8477ebf6e8e2","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":193,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"2bc76fbc-125a-42f7-bfd1-b2640140af00","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":193,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"13bf03e2-8c7e-45b2-91e4-1b58ec5fef20","block_type":"box","text":"e.g.","page_number":193,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"d1e6ca1e-e2bb-4947-9a14-0a61b74e06e8","block_type":"box","text":", sector, maturity, geographic","page_number":193,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"bfec32fa-111b-4a82-8bc8-d20eb44c0906","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":193,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"7f3a6578-9e72-44b6-8743-05d212873e0a","block_type":"box","text":"e.g.","page_number":193,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"57d806ff-177d-4f57-adfd-d135beed6172","block_type":"box","text":", financial expertise, industry track record). To","page_number":193,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"00ec006b-63be-4eb8-b3c3-44498418059d","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":193,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"77b69243-fd9d-48da-96d6-6c99c096acbd","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":193,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"07f310c3-dccb-4c45-a865-129f14d89f3a","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":193,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"47ab419d-efd5-4565-91b6-c8a04361f02a","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":193,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"7dbc74fd-f3da-4ff2-8e36-5d4e4c71a197","block_type":"box","text":"and local market requirements.","page_number":193,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"8dac79a7-8cc8-466c-b31d-6533c127e4a3","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":193,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"4753fc77-f9a7-42f3-bf57-29f1eb15bc09","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":193,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"dc28cfac-0ef0-4ee4-88dc-2c8f69ad782b","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":193,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"6b73fe54-6dc1-4963-a0b4-5c9604adbf13","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":193,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"beda7208-2ac2-4be0-8ef8-0d40d28e997a","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":193,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"d8de97dc-94a4-4e6e-85d9-5d58fd39232d","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":193,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"55dfad96-4fcf-4163-90ee-42fbdd5e4cd4","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":193,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"e8c29d40-a0b8-4ba1-b1f7-dbd335bf343f","block_type":"box","text":"Independence","page_number":193,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"ac372d63-5232-4adf-9cf2-a182de17ca34","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":193,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"d33ac739-bf46-4a4a-a1cd-81a42c13667f","block_type":"box","text":"e.g.","page_number":193,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"4b18f451-512a-482c-93bf-9a0a6653a71f","block_type":"box","text":", government or","page_number":193,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"27b13937-08e1-4550-802c-5bb8f24717af","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":193,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"869cdb35-cb16-4f7a-bf02-e647ae793a25","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":193,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"df2cc75f-7c42-4f4c-b83c-6ef63d41d7dd","block_type":"box","text":"conflicts of interest or undue influence.","page_number":193,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"e639064a-5551-4e40-aca3-6e61191d05eb","block_type":"box","text":"7","page_number":193,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"3d190c03-85da-4c22-824a-7dc65f88b2f9","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":193,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"3e97352b-8d51-4376-bf5c-e968ca43f96f","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":193,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"828da84d-3ed7-49f6-8a14-502d5f203364","block_type":"box","text":"independence should meet those local requirements.","page_number":193,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"7add06b7-d869-48a6-ac2a-befc644dee37","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":193,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"8bdb77b8-c5b9-45bd-84d6-ba0d2f1577f3","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":193,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"a85ddd96-129d-43e8-ae5c-842f51a46db8","block_type":"box","text":"composition if this is a perennial issue.","page_number":193,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"c160312d-ca5b-4793-b63e-e989af856817","block_type":"box","text":"6","page_number":193,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"d8c7656c-d919-4545-b5c6-dccbe20428f7","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":193,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"16d743bd-a7cf-435c-a574-e0932337927c","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":193,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"2e0dd362-0eb8-4a7d-afab-7d95977ffd83","block_type":"box","text":"7","page_number":193,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"aa1ab404-f931-463a-bb48-5e5602c4dd24","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":193,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"175a4f0b-7162-4b5b-a3d4-2ae4b0feacd2","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":193,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"bbccb2be-612d-4c67-963c-985e1f9fa2b0","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":193,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"2e4784f1-da56-45eb-8eba-977c3fb2e068","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":193,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"19e663da-53e0-44cf-a9bc-1cbae5161de5","block_type":"box","text":"of the company and shareholders.","page_number":193,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"b2baf9de-2f75-47b1-8e30-a986785157d2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"438f1572-151b-4e18-87b4-1ba15001b5dc","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"994ed0b8-1260-4d79-9d8a-87bac400dc60","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2bc72199-3a0e-409f-8c3a-176d71114609","block_type":"box","text":"Independent board leadership","page_number":194,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"72d4d61b-2fa1-472a-8c1c-8f054bc4e824","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":194,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"9862fe1b-cbe6-4ff4-8692-0e7c32eef756","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":194,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"b2cfead7-81b0-487e-8009-3319445dfd88","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":194,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"efcb4941-08d6-4f8c-b148-432d15fa5e95","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":194,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"b09dc65d-09bc-4564-ae3a-128fb1116d0a","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":194,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"36d1171f-db22-432a-925c-f1161e8b367f","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":194,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"87b03671-bc19-43c9-b29e-e835f75cefcd","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":194,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"930342b4-9857-46c5-b6dd-72779d622d6e","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":194,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"fc2899e8-bccb-4bf3-a3fa-b43496bf8cf9","block_type":"box","text":"how it serves the interests of shareholders.","page_number":194,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"75714d84-25af-4011-b02c-3f7ab5f57f62","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":194,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"caab5dad-6ebd-4a3b-aef2-8f928c07d45d","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":194,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"26ac472a-39dc-42e6-8dfd-61a836e6f89a","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":194,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"0d0e58a1-a9b3-4aff-8a16-2d5228808216","block_type":"box","text":"Tenure and succession","page_number":194,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"9a8a0ee0-147b-453d-aaab-e35dc8cc5230","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":194,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"13e17fb2-f89e-49ca-97f4-de4f996c280c","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":194,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"9840ffca-2a2b-434f-b1fa-143ee437cc95","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":194,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"f2da0dba-4ea3-4694-a5cc-b28ed613ac81","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":194,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"ceed48bf-7718-429c-bc29-2cab1273fdad","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":194,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"affcba11-ef56-42b7-a2c4-318afe0bcace","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":194,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"b50df8c0-1c92-42e2-b664-89ca11459084","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":194,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"917ac859-f21a-4b9e-af6f-89f14ef2885a","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":194,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"75798f7e-4cc1-4e87-9f1d-87ee644b0ca6","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":194,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"9a9fd835-238f-4346-9668-c3f55b144149","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":194,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"8c4bc0a3-2adc-4eae-a25d-acc46cce65b2","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":194,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"e0f5604f-ef5b-433d-bec4-d238064fb72c","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":194,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"6393ecfb-8e28-4f3a-b2bb-24c73bdc62fe","block_type":"box","text":"for their continued service is not evident.","page_number":194,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"a8296cd1-ad99-4f3f-b34c-037efca5667f","block_type":"box","text":"Capacity","page_number":194,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"139c101b-e252-4e70-acbe-b463ab8e703c","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":194,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"ff7c56bb-6046-4df0-ac78-fa02fbbcaa78","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":194,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"86383689-e246-4faa-b58b-796f7aa8b3f0","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":194,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"6cfc97e2-e852-4bda-91b4-908841cc8e66","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":194,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"2754b2bb-6392-468f-ab86-75bf902433e3","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":194,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"306edfbf-de35-4a6a-bab7-298feeafb08d","block_type":"box","text":"determinations across markets.","page_number":194,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"f1fc4fe6-8528-4ca6-a3b4-1e3ab1bbbc72","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":194,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"a1b33a97-d476-40a8-af9d-f260993d9319","block_type":"box","text":"their duties to the board and company.","page_number":194,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"ee224b54-eed3-48f0-ac1e-28cc37f812bd","block_type":"box","text":"Director elections","page_number":194,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"1db1e120-5d36-4af9-920f-c36e8893a719","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":194,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"c97903fe-e904-4c0f-bd5f-d96455c47def","block_type":"box","text":"structure","page_number":194,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"f635d838-c441-4941-a378-3ffdbbaf5a2d","block_type":"box","text":"8","page_number":194,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"fef3e8f5-e53b-4252-b62d-9aa458eeaede","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":194,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"090dbbd3-bb0d-49d4-a4f8-ca9696132330","block_type":"box","text":"basis of its business model (","page_number":194,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"6a37be7e-7675-435f-a759-1bca306a86ea","block_type":"box","text":"e.g.","page_number":194,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"93a55a3e-eb86-483c-aa2c-6eb3ebea956b","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":194,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"1af89011-bcda-41b6-bc8a-dce951d1327c","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":194,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"98eec564-b909-481f-90b1-0272e17ce628","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":194,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"d6ce84f8-afa8-495a-a01d-adefd5a91b94","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":194,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"163fa074-9ec6-422e-abba-18348595749b","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":194,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"f30b8af2-b25a-44c5-898e-93baafe6e47b","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":194,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"813780cd-ed03-44ae-8040-457b08938f97","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":194,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"f035e9fd-12cd-4849-9714-ddf70cd718a5","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":194,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"ae921601-6857-4a56-b645-9f1f31ad7889","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":194,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"fc3d2318-323b-4dd7-9f33-92cc12585a16","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":194,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"049d32a8-23e4-4af9-9f17-d7d5ff45a33e","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":194,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"6dcdec2c-3228-473b-8df7-93d71f9da8e7","block_type":"box","text":"8","page_number":194,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"572d99d1-d331-4d48-b4cd-ff8d80c46f04","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":194,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"d351a03a-0bec-4c43-8e7f-2d35583983d9","block_type":"box","text":"directors stands for election in any one year.","page_number":194,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"a8d6cdec-9b75-4561-8233-a433fd4575d7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c1d99319-70af-4d82-aba7-be6ed4ee8d6d","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"aa357e9b-814c-4661-83db-9bce543c95cd","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38a0522c-eb2a-4ba2-8e67-8d1c43001dea","block_type":"box","text":"Committees","page_number":195,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"12c7bc19-3504-43e0-9008-7b82dbadc9a4","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":195,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"9a739c03-2c34-48e6-bfd1-e827c1c81c86","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":195,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"69db4fc1-e480-41af-bb48-c2bb68529c5b","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":195,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"675e0778-d437-475c-ab1c-09d0dd51d994","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":195,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"22b55bcb-ee63-4432-a018-10781d543003","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":195,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"9a677463-cc87-453a-8387-ee0a262994ab","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":195,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"4d6fc22e-b1d2-47c4-92be-adcb051d6fed","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":195,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"73d389e2-5d46-4f0e-8d94-6ab0a065e35c","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":195,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"09498e13-7c5b-4b49-a974-560db3b9208b","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"285b2679-1e1b-4137-8700-5cdd04992de4","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":195,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"80b134ea-7300-4f1d-b769-a25fde5f0a32","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":195,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"af4934ce-935c-424b-ad62-cfac303a34e3","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":195,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"52fab564-89ae-47f8-83d9-751df5cbc5af","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"bd0aa126-bd06-4570-a5c3-b63371ca46ef","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":195,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"65badce3-abf6-4cf2-a616-191d31472e32","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":195,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"e468668d-f43f-4bb2-8c4a-0a6944c091d1","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":195,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"e1ca13d6-352c-4adb-9e21-0597f3ed452b","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":195,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"ff098998-ee6a-43a0-bd5c-9bffd2b86901","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"d34f71b9-9f97-44e0-96b1-d4418fc928a9","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":195,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"715c8b5e-14a8-402d-9b74-5ae1ae4c7287","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":195,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"fb1b534d-41f0-4a59-a983-65a2d1f50217","block_type":"box","text":"firm-wide compensation policies.","page_number":195,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"be567653-49d6-498a-86f1-cd741e9ed8e7","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":195,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"e76483fe-beec-404f-9c5f-f70d1dcfb0ab","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":195,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"79dfeead-436b-4450-96d2-f570ee5503a1","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":195,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"68b4d31c-bfae-4b4e-a976-d98422bd6deb","block_type":"box","text":"Board and director evaluation","page_number":195,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"06be5a96-ab9f-421e-b8ee-6ccb1b02cd5f","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":195,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"62f36f2c-1eef-4912-b4c7-2018ade207c2","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":195,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"33a7c8ed-deb1-4075-a2fa-198f8c2bbfc3","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":195,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"04725f48-33d9-4263-a996-e5ca0efe319a","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":195,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"0606b125-92bb-4f95-90a3-c0b98fadcb46","block_type":"box","text":"a result.","page_number":195,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"c0644c85-65a3-4bdf-be92-2f3f339d5f0d","block_type":"box","text":"Access to independent advice","page_number":195,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"dab847dd-c2ff-4603-9ee5-3660ff1836e1","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":195,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"9b650261-e0c9-4bdc-bb2d-946691cf5566","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":195,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"4ba1aab1-923b-4227-9c6f-48ca5398301f","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":195,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"fbe930bd-acaf-4027-b6a0-802aef6722cf","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":195,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"58edc165-c2b4-445a-b879-85dc4aa81506","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":195,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"b70babd2-0000-465f-af04-603f815a4e27","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":195,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"10acf4ee-cbd1-4ce1-8d58-368a732cf116","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":195,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"7856a87d-46c8-46a4-b0a5-4cadf1345933","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":195,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"8fa2a458-e2f1-4a51-9ee3-ee77ef39bae4","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":195,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"a9499341-4102-4051-8238-2a56711325b6","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":195,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"25b23c09-0ebe-423d-8f02-a087d7dcd531","block_type":"box","text":"performance.","page_number":195,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"5050e774-d050-444b-b62b-ec48b9a7d8c5","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":195,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"6a3993f2-91b7-4b64-9ad8-ce876f78f5da","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":195,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"0dd42de4-83a9-4ad2-93c5-ceaaf240a9e2","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":195,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"fe32fb6c-f992-4f3b-845d-b9649e4b71fc","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":195,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"3246baa7-12d4-426b-b4ec-73d6be7fae6c","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":195,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"825641a9-8bcb-4fdd-b9a0-3b7679f87169","block_type":"box","text":"recruit and motivate.","page_number":195,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"bbe5baac-61e7-4bd2-b162-859a1b10a91c","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":195,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"786ef80c-a0a7-4395-aa73-8a3c987ef38f","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":195,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"65bfefde-8662-4992-b71e-e2436f69cb7e","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":195,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"b43a2b1b-b556-45ee-b39b-7dafb16e8df8","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":195,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"1c337320-006d-48d4-9671-3a8884e8e355","block_type":"box","text":"arrangements include:","page_number":195,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"c9d8553f-54dd-474c-9f2d-6857486adda0","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"8ec82088-115e-49f9-9bc2-db4eedc7ab45","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":195,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"4e918053-c3a2-4fb8-8e0c-5724ee9cbac4","block_type":"box","text":"the company’s size, sector and market.","page_number":195,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"081e3900-85af-437f-8b87-f932cff6dab0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"54d7905d-d3a0-42f4-9289-f53db4494e2f","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"489d2431-3f20-468c-b4ac-85cfc85fd558","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c496bb8e-fee2-4e7a-b9e6-0ed7a8078852","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"d41d681a-e659-46e5-ac7c-6df47de79528","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":196,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"d726665a-2309-4815-aecc-0a0ba88a16c1","block_type":"box","text":"strategic objectives.","page_number":196,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"22019023-66fc-495d-a0bc-55b3fd861fc9","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"e36afab5-8587-49a4-9c6d-89d64cc1ef8e","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":196,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"351b3531-b308-431b-ac47-74eb4970ea61","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"56698e49-55b7-40c4-b79c-5f59720d92d3","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":196,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"63bdb08c-6900-453f-bcfd-23723298c350","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":196,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"ae419afe-bc0e-4779-b37c-988f92e7378e","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"daa4de22-a66b-49f9-8f0d-0beec8e9204e","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":196,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"76d58293-1a95-43bc-b925-2d1f7d8725f2","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"f2c324d6-25bc-4128-a16a-c3368d745f17","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":196,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"9e726207-b17e-42a5-bc99-e3e29357f8c0","block_type":"box","text":"transparently.","page_number":196,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"3951e20b-3c19-4174-afa9-35abe0161461","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"06f3f72e-9ee0-48c6-8316-ba0b9f2d2b15","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":196,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"425d0dae-44be-42cc-9146-e5b1371199fc","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":196,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"d6fb875a-10a1-4cf5-943b-624a6d59314a","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"4c6264b4-88ce-4809-8631-0d6d1d1b3009","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":196,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"b88fc83d-5c9a-4db7-9cef-e9e6823c1549","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"804f85be-e3e5-4da4-8966-7e619a61bd19","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":196,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"47335bba-1c18-4634-ade5-804862a86bf6","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":196,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"04fb097c-c492-428c-8e6d-11fa695afc1f","block_type":"box","text":"misconduct.","page_number":196,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"4b022381-38c2-420c-8f32-c4c421761cab","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"f0f068d1-fe77-4da6-bf76-dedb6f32b162","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":196,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"450cd8ff-9dfa-4572-a5dc-6b5bda04245b","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":196,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"3b261cfd-4140-42f7-bd29-a48c25f7f08b","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":196,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"676f1423-9ff4-4c1b-8033-dbd1571405a1","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":196,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"9b67bc17-5053-4d73-a26f-492bb0a12e5c","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":196,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"c5c65603-6e5f-4c84-bfab-8ecd0534fc63","block_type":"box","text":"committee, or the most senior independent director.","page_number":196,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"cf18a92e-819c-45b8-a9f4-0e5a03b6aec7","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":196,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"0760dffd-645d-4557-9d7e-83a26c9a9b96","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":196,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"96b51a55-9325-4d4b-860f-7783a4b2e930","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":196,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"ad4095c9-1d1a-45ff-a8a9-0d443f3bb9a5","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":196,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"32af29e4-d7d8-48f9-94ca-1ac4e151dbc6","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":196,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"21dc3e16-ea35-4bc7-a585-c31ec0c9217d","block_type":"box","text":"CAPITAL STRUCTURE","page_number":196,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"fc2ff2f9-6493-4139-8b67-bce17f071fc0","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":196,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"0c3eaed7-56a0-42da-8e3b-1face051801a","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":196,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"6cf5287c-dd45-4ce2-99c9-f0d799fbf752","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":196,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"e86f8e12-eb9d-4166-bdd8-0dc3e94c5ac6","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":196,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"04aa075f-fb22-4421-82ff-4cd52986a422","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":196,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"1d3df649-2f46-4c01-ba03-044e3284114d","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":196,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"85946b17-73e9-4d43-a746-b57c95a8e234","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":196,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"3cb42f4f-8f98-4621-94b6-b5006fe61f0b","block_type":"box","text":"Share issuance","page_number":196,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"a93994db-4523-4f71-8a97-492c7a8a0ebf","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":196,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"8ef7882e-cf9b-4351-a28f-af8650abece2","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":196,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"ba8f8af8-9be0-4b06-888f-ff50d6817906","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":196,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"6bd8b494-4eeb-473c-b9f3-746550d21afb","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":196,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"925ec9d0-ab8a-4170-9f63-8851cbfe40d9","block_type":"box","text":"market environment.","page_number":196,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"d000f84b-8ec1-45ac-93c9-21ba383e34e8","block_type":"box","text":"Share buybacks","page_number":196,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"a0badfb6-3b0d-4021-b7c2-5e655d85494e","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":196,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"63c10507-ad32-4167-ab51-5cb847330a04","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":196,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"67d8878a-ca9a-4ca4-a3f1-918f6078e450","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":196,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"1bcdd79c-a12f-4f4d-a251-b5bef2441cfb","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":196,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"236a426b-4f4c-4989-9e4e-da696957deb4","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":196,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"57769fd7-ca3f-483a-b9d0-a46e39b04120","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":196,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"71aa29c5-c1da-4bae-ac56-4e3615d86322","block_type":"box","text":"of the company and the market environment.","page_number":196,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"5d81a653-b3ec-4ce3-961c-1b41f6a48692","block_type":"box","text":"Dividends","page_number":196,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"81bbe1a4-8589-42c5-bd09-c9bd472d832c","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":196,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"eb950774-387a-4a33-8255-3656927c5c84","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":196,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"2276f8f9-a1b7-4a47-b95e-b78b669a255b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"826be348-f28e-4e12-8066-97289340252b","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"41bf7467-d245-464f-9ae1-a318c3659070","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d34c1fa2-1bfb-48b0-974d-ba89dbe5803a","block_type":"box","text":"Differentiated voting rights","page_number":197,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"99df906c-ee55-4644-bcc8-b20cb1bdce48","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":197,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"9d30530d-f837-4e2d-8922-4476d067fd7b","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":197,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"20f425b9-2f71-4401-8318-4c6179ccfdfa","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":197,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"f6b63200-148e-4d93-ac98-9c699ff56e7b","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":197,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"4169142c-ec5e-4946-a86a-8500f4541505","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":197,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"d854d340-3005-4648-99d2-29ffa4311833","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":197,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"e9347c81-b145-4492-adc2-304a90b78a6b","block_type":"box","text":"analyses of proposals.","page_number":197,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"db5272a1-e452-495d-8e6d-5c35ca5b72a5","block_type":"box","text":"Mergers and acquisitions","page_number":197,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"77a84fb1-6f9d-4538-8e4a-764ff0d65e84","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":197,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"f2e1bd0c-6990-45a5-8d91-dcbb795f4a11","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":197,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"6da242a6-1730-44d2-ab92-b4a2c4725461","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":197,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"52bc89c0-563f-4f97-81b1-25c5bf9aac09","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":197,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"a66edb5b-143a-497f-879d-0cda9fe7fc16","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":197,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"1896f005-6ed5-43fd-99a6-9326ec08240f","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":197,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"dcb859fd-ce46-4cc7-b334-890c3aafbb77","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":197,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"81f2ec72-e2e9-452e-ae76-1f013ada6750","block_type":"box","text":"Anti-takeover defenses","page_number":197,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"019cfbfb-849f-442c-ac6d-f3cf34b34c98","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":197,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"45c81c66-244c-4e81-81fe-cb8163b7c413","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":197,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"3b973b38-5119-4104-8ab8-41fc9a50ed8c","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":197,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"5cc20fbe-3c44-457a-aebe-e63bf36e5a29","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":197,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"fca2c780-cc87-44ed-9a9a-202de47580ce","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":197,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"c00b5e1d-a584-4dea-b3be-c8cf4bcd3f70","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":197,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"1f088122-07b7-405f-971f-d3a8d7b8edc6","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":197,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"65ec2a54-1d72-4b01-8b03-dc2ebbb3faf8","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":197,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"2251cf16-10d2-495c-be33-8226fb293a92","block_type":"box","text":"Shareholder activism","page_number":197,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"5e6a6afc-f250-42e8-b2bf-aaa5cc8419c2","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":197,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"2643fedc-fc67-4d21-ad9c-2a370f1625df","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":197,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"45e0198d-8b8f-4f2f-ba22-4d251356cfc0","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":197,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"ef9b82ad-9508-49a7-b19c-824163cb5561","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":197,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"0aa4ea71-3168-4d54-a21a-b07473cc3ebf","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":197,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"d53e45e4-d125-41ab-9890-462bfcae3144","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":197,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"aa0c5e6a-9f9a-42da-af9a-8567d9a17146","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":197,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"8fcbfdcd-ca4b-41ea-bb03-5f2ed4d8b17c","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":197,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"16c81daa-11a1-40e9-a293-b955c0a907d9","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":197,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"ce4c811c-8324-4e42-ae2f-e70a5577f2a3","block_type":"box","text":"protecting shareholders’ interests.","page_number":197,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"79a6f834-8beb-48c7-8f31-bd9b90396184","block_type":"box","text":"Significant shareholders and related party transactions","page_number":197,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"fb45d83f-5ee4-4f53-a372-e69eb1bccb0d","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":197,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"e6c51a03-c79e-429e-871a-d1c330b417e2","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":197,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"830ebcda-30f3-49e3-9ccc-64edc1b224a4","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":197,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"f83ce79b-b331-4add-8d6f-e623a4d757d8","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":197,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"e67fd938-7dde-4cac-ac2f-130e34b46c8f","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":197,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"a0d72806-d1aa-4b7d-a00e-b07f45c442a2","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":197,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"c0dd253f-b45c-472a-ab93-0d37a6039e49","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":197,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"62b01ed1-fd73-450f-b351-9eb8ffe69d40","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":197,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"63a3fd86-f5ba-4a7c-9a8a-726a6ef89c5e","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":197,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"b97b9421-9b94-40a6-b883-875b5210b7be","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":197,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"f531fb92-4b5b-44dd-b72d-46c7c285a221","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":197,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"fa8e8099-9859-4cae-b3e0-b51c46f3340e","block_type":"box","text":"audit.","page_number":197,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"3672c7b1-8f40-4c03-8c5a-f4ec6eef9bd3","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":197,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"99b6f6cd-3ffc-4d01-99e3-d4f5acffc278","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":197,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"a0ae05e9-165b-43c0-be49-4d96f968f71f","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":197,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"d0af32b1-a5e1-4735-8e4f-ebcce44140b0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6f035968-76f0-483d-a256-c77bcfe975de","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d761416e-78de-4e0b-a1e2-e05afaf2cec4","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b339cc6b-94c4-4364-a1b3-a56c92618c74","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":198,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"46c24f39-2e31-4398-a8fd-5e520ca19192","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":198,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"dc915ca6-73d4-4e9f-b82d-261d7c0de41b","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":198,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"6b7e94d6-cf4b-4184-9b66-eb240de2ef41","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":198,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"6f2035ba-71fa-4f90-837d-92397e3f0d91","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":198,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"3ba7c89d-4381-4e31-a903-ba49409a3395","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":198,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"fed278ad-e429-488d-b366-6a6bffbaa588","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":198,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"d88c0004-96b3-418e-b287-44f4c3154a58","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":198,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"1656cae5-18dc-471a-be77-eb84556b288c","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":198,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"2bf397c9-5534-48e1-a057-df0d48c75c42","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":198,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"2bc1cde9-4c8f-4204-8695-0bf90db7c1e0","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":198,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"5dda6432-9490-417a-a5bb-f8c361f3c5f3","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":198,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"f6d98740-44c2-441e-96f5-1abf2308aa13","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":198,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"be10a309-74f0-493c-b9c3-edada795db11","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":198,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"a07e77bd-db14-4540-ab1d-dfa62b0aa2d1","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":198,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"e0042b37-7ea7-4705-8ad3-4ce5659b7753","block_type":"box","text":"9","page_number":198,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"cc3e50d7-44ab-4195-8d5e-5e6e59b5de8b","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":198,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"a6669e9c-ed70-4fa7-9a9a-72336837fa2e","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":198,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"9de9915c-37ab-4e73-a853-51b122b343a5","block_type":"box","text":"standards specified by policy makers.","page_number":198,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"d18f9f96-5fe6-4c42-bcfe-5ce4aaaca29a","block_type":"box","text":"10","page_number":198,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"023f689f-93c9-4d2e-a0ef-a38a71af77df","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":198,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"ffd8dbf8-1108-4538-9f7e-6028d5f2a2a6","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":198,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"89453347-c40e-4ee0-b47f-d2acbe98bd60","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":198,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"a26b4ea7-93e1-4d0d-8eef-08cceeb30149","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":198,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"ebcb8b8e-83b8-4933-b6d5-4ed71a4dab95","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":198,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"0fed1c10-8c9e-4af2-9566-ac7ddbcf2d95","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":198,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"5fad9a65-fd31-4411-a5e2-5137fbdb3303","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":198,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"8633ec5d-b266-4ed8-9cba-8e2fec4abcab","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":198,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"7daac255-aa95-4cd9-9835-930d55ab2319","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":198,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"e2525dd3-2272-42bc-a717-026191063d26","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":198,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"745a0926-dd25-4c51-9b25-0d302e5c7945","block_type":"box","text":"remained independent.","page_number":198,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"69e5ac3f-7d51-496a-9874-466a2980d979","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":198,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"477c44fe-84f0-4566-8ea2-11f563a44702","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":198,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"7a5d77ae-ce1c-4e22-832b-024443aef310","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":198,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"9270fdcd-2868-4d7b-a3a6-256235048f0b","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":198,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"2c124e60-22d5-4a7d-9203-cfb7e54afb56","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":198,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"d5befd48-300d-4344-bd90-88f886d91e63","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":198,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"1d3956a2-eedf-43f9-aaa9-5187ff54e63c","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":198,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"50b06772-60f8-4ad4-a3ef-f4ae35e01110","block_type":"box","text":"General shareholder meetings","page_number":198,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"f1ba4dc2-628d-4c21-a5f6-dfcf423c1a1a","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":198,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"58227704-8151-44ce-adde-84d79a965e60","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":198,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"60e0b134-83c2-4177-9b83-6424a38a56ac","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":198,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"c764dbe4-afe1-4dc0-a9e9-a08945bf6ecb","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":198,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"5536c2ee-52e7-4f5f-a82a-25d3a74575c3","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":198,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"2c49ca7c-50cb-467f-9513-1111a2ce3eee","block_type":"box","text":"an in-person meeting.","page_number":198,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"bd1ccac9-396e-4870-b75a-dcc40092ef95","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":198,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"b0ddffbb-475b-4450-a72c-880108cd29be","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":198,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"3a136407-ff94-4242-a43a-e1d9a1870acf","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":198,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"7697a1c0-7c3f-4145-a9a7-754cfcbf1665","block_type":"box","text":"participation.","page_number":198,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"7fa5207b-c3d3-40dc-9483-ef53d26a116e","block_type":"box","text":"9","page_number":198,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"b3572981-c04f-4293-baf9-b0039e705b91","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":198,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"39b43431-9aa2-412a-8aea-19843f0d17ae","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":198,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"71ded7d1-14f7-466d-bd80-ac5153fa04fc","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":198,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"853e2db5-ab15-4787-ae64-b35632bda0fa","block_type":"box","text":"Disclosures.”","page_number":198,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"44aab17a-5694-4ac4-b86a-04c19d294ceb","block_type":"box","text":"10","page_number":198,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"be6410d9-4a40-4a07-bbfb-4a3095d04045","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":198,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"d3eeeb7c-cb86-476c-997f-b7c509c90326","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":198,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"e96112aa-2428-47ae-974e-1ae5f4b19d99","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":198,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"2b05c283-d6fc-478a-a4cb-a6d93f890481","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fb71a47e-e06d-4d97-8fc4-b02f967a72ba","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"401267d3-3e73-4c3a-b097-f3f3330a5f7f","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01ba2629-1672-4430-a8d3-dd4fb526a85f","block_type":"box","text":"Bylaw amendments","page_number":199,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"6112da21-1baa-4d4a-b192-cbcd6b58292b","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":199,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"fedf80b9-ff04-45d4-a588-225613ad121c","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":199,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"f413be6c-e2ce-41c7-895f-48b6820b8a6d","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":199,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"c175a464-a86d-4e88-8248-2be76a589798","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":199,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"a427760c-1297-4f71-9cbc-98baed510d39","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":199,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"9f976a74-d684-4d8c-a5fc-77e0c207cfb1","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"a06e1936-e2b6-4565-b29c-1a5d3a424a88","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":199,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"3966644e-68f1-4c58-8306-c7641f5bd859","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":199,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"7286b34e-9b06-4f68-a54a-ed25308e6e07","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"5e7378ab-fe33-4dc1-8072-6f27706ed5c5","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":199,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"f8281f0c-7601-4350-974b-692fe4135c45","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":199,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"1315e711-737b-4707-9341-c042dc54b6bb","block_type":"box","text":"nomination process.","page_number":199,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"d86140ac-07fa-466e-874c-d7d59eb4e9dc","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":199,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"c77085c8-5d6c-4290-a715-a5a37b4d1a6c","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":199,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"749af0cb-ee39-4477-90c3-6b1e70f6ad8a","block_type":"box","text":"Change of domicile","page_number":199,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"825715ce-3e7a-40fd-ad07-8f7e4f335d5a","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":199,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"974315c8-593d-47b3-88e2-73faebd11c54","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":199,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"bd46d08b-888f-4f37-ab06-13f1b5565d2c","block_type":"box","text":"immaterial.","page_number":199,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"ae68e7d3-dde1-4cdd-ac9d-a720ef111897","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":199,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"a55c61ed-ae0b-45e6-b585-0c44de7381f1","block_type":"box","text":"with our clients’ financial interests.","page_number":199,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"c460ec90-cef5-4ca2-8a2b-e2055ed64fe9","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":199,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"3390fc55-7dd4-4ea5-9bd4-3e14742a77ff","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":199,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"c9717304-7611-4d8c-b9e8-5fe129a82b14","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":199,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"11b4f922-bb50-4422-8584-caedc44a078c","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":199,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"b6db2136-f74a-4cc0-b2b0-58d52267087e","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":199,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"176bcaab-af25-480b-adf9-9a0af3a2f120","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":199,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"e2ea319e-c060-4d5b-9919-dd4e2b0e0be6","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":199,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"51cc2901-36c0-4ee3-8147-540fc2ef8970","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":199,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"381746a9-e82a-4eee-913f-e7ea63d9231e","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":199,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"c5603da0-ede6-4ce5-9507-32d7ffa84d0a","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":199,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"ad29f7fd-336b-4391-9386-e2b4b06d03d6","block_type":"box","text":"relevant to a company’s business.","page_number":199,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"9fb6b14b-3810-48c5-a1ad-193774581f63","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":199,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"fdb6f73e-32b3-4128-a248-20a472d23457","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":199,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"822d69d1-2004-4b8a-88d4-e38effbf92c6","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":199,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"358b40bf-e511-4aaa-9c09-e559e664533c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":199,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"d1e1c500-894f-4e8c-bf8b-f94c8cbfe140","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":199,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"b3ada339-71eb-48ef-8d97-3debe5edb19f","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":199,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"df8e9bdc-56c3-4205-a77e-01220a994205","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":199,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"55315465-8952-4fda-b917-07b4da4196cf","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":199,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"054b9fad-1c09-4042-a0d5-c6f662d0b0f1","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":199,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"2c075de4-b9f0-4d44-b124-078127cb98b6","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":199,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"a3d4bbff-b8a6-4dad-89a9-413f6f3a83fc","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":199,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"38f185bf-31b9-4d92-8877-8286c911556f","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":199,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"dda88f13-3e63-42ac-874b-eda11c93ab6b","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":199,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"d8237ad7-a828-40f8-89fd-2058a4eb5fc9","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":199,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"669b8a42-f592-4d64-b6f0-d2e1fbf4c000","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":199,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"65f655ab-9dfb-4949-aca7-cc05648c0452","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":199,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"7ed2e279-c098-47fa-a5e1-a58301a97cfc","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":199,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"10a6346c-a4bb-48c4-b57b-1d49c359da97","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":199,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"65525e7b-6332-41fa-83c0-f23f1ccf1c27","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":199,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"3563d7c4-230a-4ca2-897c-3315bfdbb1d4","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":199,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"6ff16b44-43ba-424b-b086-1d0083ab5869","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"74b8017c-3a12-42f9-818c-91d68693d802","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"db055782-2d07-4662-8fde-320dadea098b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57d13f4b-471b-4fa4-8795-256a766a4512","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":200,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"0e2efa5f-c53c-4c93-854e-5c9493f5dbd7","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":200,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"29f7fee4-a75f-40b8-ae60-60ca26316697","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":200,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"1051e2c5-8db4-496e-90d4-9f8d3fa690f9","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":200,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"34b0ae96-24d9-4035-8064-6c6ea8bbb24d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":200,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"1e1c5400-65d1-47c9-a464-968c09dacaa0","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":200,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"61c60ed9-7504-4a2c-b6b0-05db44593959","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":200,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"4d762f17-7a5f-454e-b9f8-965ad3f1718e","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":200,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"3d837406-2f46-4107-936a-8f5a8d337c30","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"642b92c5-56f9-49e9-a7d8-31b3a0e0e911","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4066486b-5799-4791-9d21-5fd7ce60258c","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d84eefc-d356-4ac8-b227-d7e8e6532155","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":201,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"715c7ece-be96-48d2-94ad-12dba58178bd","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":201,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"88455419-62c6-48e7-b763-93aedbbb73e3","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":201,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"da2f9245-fd87-499e-bd16-e2514ba6501e","block_type":"box","text":"11","page_number":201,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"e345bbed-78fb-4051-9639-a342dda3e530","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":201,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"204d6326-45b8-45d5-bd80-5baf1e100312","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":201,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"485d6695-a5cc-41a2-820c-05d7369a6aed","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":201,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"60af2d91-cbe4-492c-bc3d-4d2f78ca0b40","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":201,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"cb0b4b64-227e-49af-b7e7-63dda212c457","block_type":"box","text":"regulatory requirements.","page_number":201,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"30cff640-7d89-4abf-a29c-36fcc3288f4e","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":201,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"f009da9e-1cc3-4d4e-bd04-9a96647d306d","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":201,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"5fa13f66-250f-42cb-986d-1e44bcddadcb","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":201,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"84de15f2-76a5-4cf1-9227-f95af95a1562","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":201,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"fd00592d-23e9-484b-b81f-317338080a2c","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":201,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"611888fd-9950-497e-b85a-cdebd0920a59","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":201,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"97531c0f-c349-46fe-ab15-82bd9dbf115c","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":201,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"503b58d0-f960-483b-ac68-9a878b05024b","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":201,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"3cac871d-8174-4454-99b2-13df46e4df0c","block_type":"box","text":"returns.","page_number":201,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"bdbeaec7-bc10-40ef-933e-ff555fc07d7d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":201,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"94ba3440-c9fc-4749-b8e6-099000e1799f","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":201,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"66d32ee3-2727-4ed6-90a1-03229cebcd4b","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":201,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"ba5ccc2b-a282-4767-a631-7fd1c120d252","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":201,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"5541299f-55cf-44e8-bf83-5d0d30e2215a","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":201,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"0186eda2-d4f3-4db5-9121-01f4c52c343d","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":201,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"e19c48ba-d69a-4d39-87e0-1167f62a7ab4","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":201,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"9f9e20c3-fe23-450b-992e-43328b6416a2","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":201,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"b5cf9b90-80e5-40c4-ad0c-bef9d4995f4c","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":201,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"a1aa3ca9-895c-4d52-a969-b61439afb647","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":201,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"e5339eaf-3888-4d02-b785-0faead2a87d3","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":201,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"26954f64-2bf1-4abc-a5a3-897caebc4357","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":201,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"c959552d-ffc2-4b0c-802f-2578ca96f48b","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":201,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"4755d7b0-2bff-4d05-a4c8-ff23e3d777cd","block_type":"box","text":"i.e.","page_number":201,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"6e845db1-333a-4d2e-8e7a-7501bc782e94","block_type":"box","text":", one in which global","page_number":201,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"1cb596a9-e4e4-4bd6-9066-e48c84785f22","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":201,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"28a5e971-359d-4b50-8516-22e82b22ddf7","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":201,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"1ed9fc49-04eb-498a-b0cc-2d172b1c4bbc","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":201,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"038c66b3-1e84-4f6b-ab10-ef0eae9a1fd2","block_type":"box","text":"client.","page_number":201,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"441ab65e-ae51-4b09-8818-eac7ddc9e1ae","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":201,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"e8010fc7-aa4d-4c1b-9369-fc63633519fe","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":201,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"d0306911-7ba0-4be2-8798-e0760ccd7992","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":201,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"a9581ed7-69ab-4149-b4d3-7584df733e17","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":201,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"7f5454da-fea7-4993-8b9c-c44920d9162c","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":201,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"c6c8d414-af28-4970-8ba6-1795e3e707af","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":201,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"dc47ba03-bc20-490e-87cc-f9f8d837c53c","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":201,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"39ef65a0-0fa2-40e0-93b3-19da98595ae6","block_type":"box","text":"1 and 2 emissions.","page_number":201,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"b81803d7-6638-4a84-a533-b2cab5dfbdda","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":201,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"8b146d28-be8c-471a-9f1e-6758a9684e5c","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":201,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"c5759f18-6b6f-432b-8a1a-8eca04d6a93c","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":201,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"c3b61dc0-4226-4336-b27a-863323905751","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":201,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"4a7e4892-681d-458e-a542-5e5051388556","block_type":"box","text":"11","page_number":201,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"3e169827-c18c-4025-9fff-d9dc9227ebb8","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":201,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"0bcb9165-d51d-43fa-9ba2-a4510d0cf5d2","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":201,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7a98a147-616c-472d-b147-a67c5d940c6e","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":201,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"4553a3f0-6518-42c5-a432-6307a1ec9b35","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":201,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"d007cc53-c915-4ae6-a803-4bf15049850d","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":201,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"90544f38-5208-4c5b-96be-ceb6cc822dbd","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":201,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"8a645a98-9196-4fee-abe0-bd1abbe6e54f","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":201,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"e89699bb-fdd4-4fb0-b8bd-b84b76a7ff62","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":201,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"0aefcb93-766c-4235-89d1-c54d80b5d67a","block_type":"box","text":"sound governance framework.","page_number":201,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"53c99c42-7122-4535-b80d-6e113620dd7c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"88dbff36-6301-41ec-856f-f3e725b11c2f","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"78dc20d6-f6f5-48a7-8b7e-dec86f20e9f8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ef3cced-c8d4-4793-846a-9a867cf67c65","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":202,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"9a3edd01-da2d-42b0-8263-767509a06e14","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":202,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"d0633074-46fe-42f1-8f03-52717c1abc86","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":202,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"326d58a4-d5c5-4c06-b563-48dfeaedafe5","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":202,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"c2c5da37-fcd9-4f79-a7f9-ebe11073ae06","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":202,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"5cca3a43-b110-4b25-a67d-f45b1649b000","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":202,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"848b2657-2b8b-4f2d-9984-54ca46120db9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"45489181-1728-482f-ba83-943d193bf04f","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f5567155-abbe-4a68-85ff-e12d07fa6a31","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0e7ac68-cd5a-43ab-ab04-d711c589d93c","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":203,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"71b23d4c-c3ea-4ccc-b388-0fded7aa8f25","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":203,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"db0f897a-956c-4e42-b5ac-12f45c07a9e3","block_type":"box","text":"Oversight","page_number":203,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"48b7efe0-65a5-4315-bc29-014baf77e7ba","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":203,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"5682d698-fc70-4d3e-8b8f-4c27b9c36539","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":203,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"59322302-c48e-4908-ba76-2941e24e121d","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":203,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"d17c89ed-36ea-4e80-ba76-bdcaea76e701","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"7f72298e-ec0a-4051-8719-8f9fd9f74ccf","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":203,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"96b34441-340c-4162-89c9-37f8eaa023c6","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":203,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"1338e17b-33bf-4670-b1d1-25b3858b991a","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":203,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"665b12e0-6c3e-4ba0-a26d-c8c9a3959eee","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":203,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"96c967e7-d6bd-440f-ad52-60d1e8de2a62","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":203,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"c2eb2b05-b789-404c-8495-6742c1af4b54","block_type":"box","text":"relevant active equity investors.","page_number":203,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"6335541d-d63d-483a-9735-7b7daafaa31c","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":203,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"3c1013e9-50bd-4217-ac1a-953581c55550","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"6f319df4-028d-44d1-a580-202c80da3f7d","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":203,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"76fed85a-e436-45e3-b93c-05d607549ae2","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":203,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"7535a030-7876-40d8-ba6f-c0ecb1694d4f","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":203,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"749ef12a-5b2a-42c2-a070-856bb1d7dd82","block_type":"box","text":"third-party vote services providers” below).","page_number":203,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"d8b95e39-0600-4763-be55-e3f12f04ee27","block_type":"box","text":"Voting guidelines and vote execution","page_number":203,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"6189b80a-e61a-487f-bdda-1f09a4beeaac","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":203,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"5787bd8e-f0d1-484b-9abc-c9f774eb24d6","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":203,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"09b27947-1761-4f83-ae4b-58d760b9fe02","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":203,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"dc152469-e554-4198-bd08-7769e40e9a97","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":203,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"e5144286-67c3-425e-b953-c753764a43c2","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":203,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"906987c9-9e8f-4333-92fe-93e73d090bd9","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":203,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"f7429d23-19a7-4d43-9de8-d81d622780b8","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":203,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"d4f48477-c469-40eb-8bda-21e4093e896f","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":203,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"65308f8e-738b-4464-90da-320c0e614299","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":203,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"4b4582a4-bf12-40ce-85ea-e2082f06e3cb","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":203,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"91cbce69-70a2-4484-bbd0-71a34576ce30","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":203,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"f87668c8-0d8d-458a-ad49-ad29a2fe29c6","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":203,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"62360995-268e-4181-8a81-2de3e98d8e1e","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":203,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"eacd57b2-bd93-462e-a6e8-119dbb622581","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":203,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"918105dd-e143-447f-8081-71e315be621d","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":203,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"62a1bb5e-8da2-4688-b4e7-639cc3941cb4","block_type":"box","text":"corporate governance and feedback from companies and clients. 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We are not supportive of impediments to the","page_number":203,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"c7cb7101-2f0b-465d-8d68-7d84f6bbc793","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":203,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"9ef8363b-ad97-4075-aea8-808c326091f4","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":204,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"2a44e429-b130-45a5-80da-829b8c6d075b","block_type":"box","text":"leverages its online platform to supply research and support voting, record keeping, and reporting processes. We","page_number":204,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"d11bdad9-d03a-49cc-ac4f-44d24c0a4268","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. 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outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":207,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"1cd948ab-8c74-424c-a6eb-b0235db93787","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":207,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"b770a755-1063-4d50-9b64-7b92e3a4dc41","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":207,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"195a4c7c-6e9e-467c-bb1c-181dca2711c7","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":207,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"b066dd00-ef81-4959-b41f-371514b0d111","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":207,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"4c9aa2de-ea37-45e1-9f61-51749380e61e","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":207,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"2166c851-2d42-4126-b22e-08802a50924e","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":207,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"98a46f32-d4fe-4eec-9be3-c41a817e20b7","block_type":"box","text":"Appendix A.","page_number":207,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"8169bfb6-fcba-4f63-836e-0ef111e029be","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":207,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"2fb11c38-012f-4830-ba61-0ab13923f105","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":207,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"849968eb-8060-432b-9311-231faeea0b55","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":207,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"bbffa4d8-e451-4164-b1ec-4909ba99c53a","block_type":"box","text":"Conflicts Management","page_number":207,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"c32a7cd9-0835-4762-9b3b-4a27e26594ba","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":207,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"a4b2d19c-07f2-4eec-bf36-61fd6f184afb","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":207,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"66246c37-24e6-416d-86c1-cfb9a05f6c30","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":207,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"eef61c40-22a8-4472-a8fa-795645b8767d","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":207,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"8600620c-d26c-4262-af93-68e039bf1baa","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":207,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"54682472-7b4d-4521-b430-87e8613c7e27","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":207,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"ffb6636f-7f9a-4815-a0c4-7c63f0b2756a","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":207,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"5f2dff65-866f-46f7-b085-afa8bb278699","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":207,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"85aa4fa4-55e9-4625-9916-c28333474ff3","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":207,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"73744088-fa42-4f74-985e-7a4e573c41cc","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":207,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"6b09ad1a-564b-4c10-be08-d130f22343bd","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":207,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"f5ab0463-b682-442b-ace5-2f6b2eeffa42","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":207,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"3813f21d-cfd8-4f96-b93d-f0d8cf026709","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":207,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"b2b40a29-f29f-49a1-8853-7b506ee390e5","block_type":"box","text":"connection with proxy voting.","page_number":207,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"2c83dff2-3d99-4b6d-a871-04f70436183c","block_type":"box","text":"Reports to the Board","page_number":207,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"d0d88b50-81a7-4a5d-a4f5-aab33415952b","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":207,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"2dd96ab1-7d9d-4b1f-a3c2-3968751abea7","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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BIS does this through:","page_number":211,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"6f8aa864-6881-44de-9b3f-ed1d260caa01","block_type":"box","text":"1. 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Voting at shareholder meetings","page_number":211,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"8964d48a-7163-4abe-bdac-72f8a80ec94a","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":211,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"05847fda-7e05-41bb-9235-0fad844c18fa","block_type":"box","text":"to vote on their behalf.","page_number":211,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"87310b58-bfff-4777-8485-cb5e36164ee3","block_type":"box","text":"3. Contributing to industry dialogue on stewardship","page_number":211,"box":{"x":69,"y":256,"width":388,"height":11}},{"id":"1b31a32e-05fd-4e85-bfbd-e4378f57d0dd","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":211,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"f5521544-e0fe-4d5b-acec-6db77a7328e3","block_type":"box","text":"clients’ investments.","page_number":211,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"b4dfa215-0ccc-4cdc-a70a-73179e505cd2","block_type":"box","text":"4. Reporting on our activities to inform clients","page_number":211,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"edeee3ef-4a59-4da3-9d2b-2e94e31623d2","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":211,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"abfcbb4e-749e-4e29-a421-554cc8f60eb1","block_type":"box","text":"publications on our website and direct client communications.","page_number":211,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"d664ff6f-6c40-4e28-8aa8-b1fc7b94b7f2","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":211,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"e2bfae3c-d096-45b7-8bd5-3fe03b111a4a","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":211,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"cb77d9d6-a53c-4c81-9ed4-fbc7cf442fac","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":211,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"c0862752-a3a2-46e5-865c-6f290a49dc37","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":211,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"194a554d-0655-4d3e-bd5b-88fc6db04ae0","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":211,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"3264418c-f9c6-4acd-a8d0-8d5fee14e008","block_type":"box","text":"2","page_number":211,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"be829666-b5bf-4afa-889a-00f3d6501244","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":211,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"96c3fc24-7d86-4c86-b147-202d6ae73529","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":211,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"367be704-2a65-4310-ab0d-cb8831523769","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":211,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"0d903dda-1f73-4bd7-8685-32386e542215","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":211,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"d5072287-211a-47cf-89e6-a3dd34db5b88","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. 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Our role, on behalf of clients as long-term investors, is to better","page_number":211,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"a828c5e5-fab6-42d3-be58-77395e8869ee","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on opportunities to help protect and","page_number":211,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"4c0be718-ccb0-4e22-987c-726b3115d3ac","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":211,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"ea90b326-fe34-4507-872a-7752d1c6d771","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":211,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"4b4d8961-561f-40a6-b5a1-37027601cfb0","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":211,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"230ff4e0-6a56-45f9-be1a-656bd6553d61","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":211,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"9fe2f8ec-663f-4753-b132-629f2a508fdc","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":211,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"df30c9c4-c735-4abd-b49f-533579586618","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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Engagements provide companies with the","page_number":211,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"93764697-d347-4657-bda9-3fdf462c4c05","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":211,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"83dea348-d813-4479-8fa6-51d49d3a587b","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":211,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"50178b58-e0e3-4cc9-8f8c-6ca5b978a6cc","block_type":"box","text":"1","page_number":211,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"4aab6a62-5fc2-4ffa-8fba-7c7f8e4e16ab","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":211,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"76ecfb5f-7bab-4441-bdbe-d1389e3a2e28","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":211,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"a251fa22-3508-41e9-a623-2892c3c5a0b2","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":211,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"0d1d2a20-b8ec-42b5-9231-d75220e5ffd7","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":211,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"72620b58-4fcf-41bd-92db-a75fb7b0dc9f","block_type":"box","text":"2","page_number":211,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"54cac964-66e9-4c12-841f-f275bcd0bb0a","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":211,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"a675330b-1c59-4364-b2d1-08b0f9275427","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":211,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"b3a702e9-6765-4ac6-b94d-61deafd399e7","block_type":"box","text":"material business risk or opportunity.","page_number":211,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"f3a2dfc9-7cfa-41f0-8c80-527c97613fc7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"32159330-5869-45eb-898a-322954e34cb7","block_type":"box","text":"Global Principles | 3","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"88b5350a-5f25-40b0-8f8a-172591fca1ea","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa3a26db-c9d8-4c6e-ad49-171d67778b52","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":212,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"f099bbeb-c6e3-4969-9277-57f7880b00cc","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":212,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"7145b210-2c4a-4f0f-a706-1faeacba2c61","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":212,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"23487760-a5bf-4bcd-9300-bcc8ae6a8b63","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":212,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"029b5325-334e-4891-8dbc-bb32504f41ea","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":212,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"73d28b96-1f21-44c8-9ea6-09b19296e968","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-party research,","page_number":212,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"91504072-8981-44a2-873f-c2eb40c7a346","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":212,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"0ab7b755-061a-4467-94da-42867f756cef","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at companies","page_number":212,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"cf2ad1ca-7c71-42bf-b4f4-3e65ab3b9d1d","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":212,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"1188d6c5-e003-47bb-9382-368feab77067","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":212,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"7e811d5c-fa97-4052-afeb-42e1a9ab9569","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":212,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"8c2f1473-cf8c-49c3-bc23-9cb3f8f24bea","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":212,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"ef339ce1-0f54-4332-841e-5c56bf117c69","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":212,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"cc1f0d16-fa84-407a-8ad6-d9c3e9f1d197","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":212,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"a7561961-c6bb-4e79-9f13-a4f1416abcf3","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":212,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"21bef092-4cb4-4cc5-8743-ee2c9f176743","block_type":"box","text":"3","page_number":212,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"a4c3ab97-300c-4c00-8371-3f50b3dd2bef","block_type":"box","text":"For example, in","page_number":212,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"eacfb57b-a28a-430f-81de-451af24a6871","block_type":"box","text":"most markets, shareholders have the right to:","page_number":212,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"5e692cdf-7997-4489-9076-fc051b3a5cf6","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"e4105c10-f662-4cb6-9db4-c799f70e0829","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":212,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"d3f7ea0f-437f-4835-bafd-7827d20ca565","block_type":"box","text":"charter or bylaws.","page_number":212,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"613dda0c-3c52-4321-aa7d-7271fe280ad6","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"d42805fc-7c28-478b-b8f2-33aa9f2da113","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":212,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"09f0d3e2-aff5-43ee-8b73-0e95bbb9af15","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":212,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"39ca0541-4386-4be4-8a74-ef7dc2b20941","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"c387edba-370c-4427-a699-82f1bf5c57e2","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":212,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"43fe231f-4707-44c3-af97-898f1e47658d","block_type":"box","text":"are material — to make informed decisions.","page_number":212,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"67aecf47-514f-4589-842f-82bda274d5b4","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":212,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"4a03beb3-6112-446c-844f-52e3f20353c3","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":212,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"e572a80b-1f58-48f6-841d-371a2e2a5eb0","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":212,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"b5c9d8c6-d721-4e3d-a836-08bc751b7fcd","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":212,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"02e41ddd-f58f-4238-9397-4c264b6a0e69","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":212,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"cd6e234b-bdc2-402b-ae8e-5f6b89c33d56","block_type":"box","text":"4","page_number":212,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"502f8bac-7042-421d-b79f-0a73dc387af9","block_type":"box","text":"3","page_number":212,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"bc2f0ea9-082d-4362-9724-783336f7ddd2","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":212,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"e7e2e0d8-ca25-439e-aa3d-5a117388d471","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":212,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"9141d645-b47b-4010-b2a0-bb70789a3d3a","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":212,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"da01f96d-d960-4582-9078-b685c28c0e88","block_type":"box","text":"4","page_number":212,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"5f8615fb-9b93-4823-a04c-9d423a24a9a6","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":212,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"40d7ca73-7f79-49a4-b635-af16c9bbfb67","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":212,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"830e5343-c6b4-42cd-b04a-7a0c34715d37","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":212,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"8fda34e5-84b5-4dbb-a419-bad9bd0cf30f","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":212,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"8c1c6430-5136-428e-9f31-32dae121bbba","block_type":"box","text":"guidelines.","page_number":212,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"88fe8912-b6c7-4425-b837-63c3c420a3b3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b5cfba8-56fe-4b22-9580-37a92b7f464b","block_type":"box","text":"Global Principles | 4","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"fbcb7a31-ba13-4de8-b404-933a458dbfdd","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e626851e-f4f4-4f7f-8e76-a9018cd4329c","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"26eeca44-467e-46d4-be33-2deddae5158f","block_type":"box","text":"Oversight role of the board","page_number":213,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"bda7dce7-e8a0-4199-8b0c-3a308acd1b95","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":213,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"fe0d2716-5864-4b8b-b08c-2c7a75a3b520","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":213,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"6504c869-8fd4-4d3c-ae80-586aeb3264c9","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":213,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"74c6ac4f-95c2-471a-a890-f4b1555a91ab","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":213,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"fce7a341-d9bd-45a5-b712-8883c7b9ed1d","block_type":"box","text":"long-term financial performance.","page_number":213,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"8535eb56-a2eb-4822-9cc1-fe1c94ad56e5","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":213,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"b1667c52-90cd-47af-a39c-249605b6f7b5","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":213,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"28625dab-3274-43a5-b5c6-5564a4398f8f","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":213,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"17549abf-ec72-4c4d-80b2-6d65764f5c65","block_type":"box","text":"the business environment in which a company is operating.","page_number":213,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"df717d55-65b6-4094-9765-42fc052b71ad","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":213,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"b9bed786-23b4-4b00-aee5-ba832e13034f","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":213,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"3d2ba4d3-ae61-4520-a850-15489f0c1e19","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":213,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"91887a25-c532-42ea-b153-7d963305e2c0","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":213,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"4bda7637-0eab-4b8d-ab6a-931b40bb50ed","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":213,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"da9f5862-2862-4c2b-b40b-0f0c3a075639","block_type":"box","text":"mitigating such risks.","page_number":213,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"48c2b80f-e695-4221-8548-927f3bb4f027","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":213,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"19b307c9-17ed-459b-82c4-b706bbf979e5","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":213,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"fcf788b3-8cfb-4e7e-b416-3463a027b08d","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":213,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"d6ffbb98-90ec-465e-bb98-b97a684b42d0","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":213,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"722d3ef1-831a-4cc8-b2eb-01eb1d7034e4","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":213,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"4f4cf412-2396-41a1-99f1-2274530b977d","block_type":"box","text":"strategy.","page_number":213,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"a96d891b-ec18-4fb3-af04-0428e7889c9f","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":213,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"83711634-716d-4ef7-9e9d-d34ffba92cb1","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":213,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"91eecb4f-fd3a-4483-af39-60928471dd64","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":213,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"d41b151f-54fb-4e53-9b8b-440ee5dc6fd8","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":213,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"49346c3a-2a46-40dd-8bcd-bb37bd6b2e22","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":213,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"2770b12a-1211-46b2-a6f8-3e6549dbc95b","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":213,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"5993cb8b-c76e-4bfc-8c25-35bbd95d2f8d","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":213,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"07baab34-8a1d-4c79-890a-64c634c01abb","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":213,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"8ec17710-f02e-42b1-9e0a-bd3d0d4091f1","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":213,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"8b4aa0b6-3e19-46db-8a08-b312e80a9452","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":213,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"156c7520-1b55-4ac8-b7b6-32b98baea435","block_type":"box","text":"Regular accountability through director elections","page_number":213,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"4bfbf217-406e-44e9-90e0-36a1c201149a","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":213,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"a50d6432-8c72-48a3-964b-22fc5f3921e4","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":213,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"ee5894f2-968e-4d33-bbdc-090ce98baa43","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":213,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"ccfdf3b4-d139-4c9f-885a-3983b6d6b41d","block_type":"box","text":"5","page_number":213,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"a50cb4fd-1115-4796-8a00-55c3e9fca539","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":213,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"ec257f0f-3925-4e4f-b4af-1b1b7995389c","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":213,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"62d2fb76-889d-4a82-983a-a0d716f65c2c","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":213,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"6fc60179-b0f4-4e37-a47c-17d7e43b7432","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":213,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"1f90a24d-9cbf-4b2a-9e92-e1c4be2acbeb","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":213,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"07fb8d2f-50e5-478b-821b-c89106336931","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":213,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"dade3e61-820d-496e-8d57-28d8d41d6920","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":213,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"eaf85d14-92cd-4b29-94e3-e6265f328ce3","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":213,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"cf2e3133-3095-4736-ac79-48f420fab1d2","block_type":"box","text":"5","page_number":213,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"ff3d6dc9-4284-4a30-9ff3-5e167a400d27","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":213,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"b2594828-4320-4224-875f-da83997aec8a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":213,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"8f761901-3316-4728-af25-28ecceb38d82","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"893a6385-27ad-44d8-a495-3c95376606b9","block_type":"box","text":"Global Principles | 5","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8189c0e4-9562-4217-a295-4d32f2fcfca1","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b69df724-b00d-4a65-9c90-5acb63a0e518","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":214,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"ae20bc42-ff15-418b-8f23-99908bad7e0b","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":214,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"d1d911b4-6243-4a7a-9e2b-2cba5e1e38d5","block_type":"box","text":"recently.","page_number":214,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"fa64c9fc-179c-43eb-a09d-3381215128b0","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":214,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"1dd0e00a-b80a-4421-b8ff-ccb6ba8ba553","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":214,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"f5bb3f52-2e61-4523-82ff-ec382b9fb469","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":214,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"f0c0bbfa-4888-4d02-959c-01ee8f6c3dd2","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":214,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"aeb1aa6a-44c0-488c-a014-32a708a396ba","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":214,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"21c2fd81-c402-432c-adf6-6e55da0931e5","block_type":"box","text":"Director independence","page_number":214,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"8c332635-2347-4baa-b14e-26f45fc59f00","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":214,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"5e3d1686-a90f-4218-9e58-30c387ed6185","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":214,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"37d4caac-90d0-4ae1-8dd0-5e0326900c02","block_type":"box","text":"6","page_number":214,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"5627afa9-0ff8-43b3-9bdb-2d5f9f7e9204","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":214,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"75116aa2-b9d6-4f27-8f2f-cf069991cd05","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":214,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"98c5b220-91fa-4f8c-b9fb-7df22292b89f","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":214,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"ace5d26f-e1bb-4dad-a159-d6f8cc25db26","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":214,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"317280ce-2f7a-45cb-a1fc-30aa51cf92be","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":214,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"61308851-847d-4364-a99d-46a3a9688bdc","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"819598ab-2c72-48c5-ba73-8588ec290422","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":214,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"e34d27d5-1194-44b3-a183-00656b414322","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"3f87c48f-33f6-4ad7-8889-31fa0eed9f1b","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":214,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"2d3f48ea-72bd-4976-88ac-ea01ac7d7d3c","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"c5adfe89-e23d-4775-83ca-7a938e19ece7","block_type":"box","text":"Interlocking directorates","page_number":214,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"8240f955-f783-43cb-bb88-d3f7e16018ce","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"b76a2b5e-eb6e-424b-9cda-080d62163355","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":214,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"6dd054fe-8db9-45f6-a4e9-6026b7a7720e","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":214,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"ada1fa3f-fbdf-4e52-bb18-0eb73323eec8","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":214,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"d1b6dcc7-e0b6-4839-8d55-8bf7c016a9f5","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":214,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"c86ffc9b-325e-40ab-8c19-dabb9718d514","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":214,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"41a51daf-4f42-4024-8ce1-fcd1f6d1a296","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":214,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"64baa471-15ff-477f-9877-b92d48de073b","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":214,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"8ba8f020-8907-407e-b52c-500429eea177","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":214,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"2c45b113-c7c5-4097-9c4a-8f35dd313d07","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":214,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"08d37da6-7b98-4b39-9b4e-28a57a94f81d","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":214,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"a6dce8e1-b33c-43c2-b992-2bb20150244f","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":214,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"649c9df0-f3f5-4b4d-bd51-ef7c23cac79b","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":214,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"3181bd71-1745-4e16-acb0-bcd57add888e","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":214,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"2d1f2ba7-6360-4891-95e2-36ed41facb29","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":214,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"0baf5c14-e548-4564-b42d-955630237229","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":214,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"a7896ebc-2d78-4887-9ae2-a62eed9ee683","block_type":"box","text":"Sufficient capacity","page_number":214,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"515db9df-e932-4e37-a5eb-9002b8ab71a8","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":214,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"4161ffab-8b43-4239-9a6e-a69cfa29d2d3","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":214,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"a8f3cf21-32e3-47c0-b92f-e8fc10758837","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":214,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"d5945333-583e-4a84-bf78-b01b9ac1fffd","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":214,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"fd9aefff-5c9a-4f3d-aa7f-79f3b0788dde","block_type":"box","text":"Board composition","page_number":214,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"ea7ac9a0-926b-437b-8bfd-ff5462dbc5d8","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":214,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"0c7fc637-6e7c-4472-a945-178e1ce52d12","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":214,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"b4232251-46d4-486f-b40f-d7c4601ac116","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":214,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"07125c85-d82e-4f14-b986-b4b9ca3834df","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":214,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"74400516-b462-4060-9488-ba9ab616c07e","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":214,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"741a2ce8-79f0-4088-8310-c2820c586464","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":214,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"596ebdca-9aba-4c91-91ed-b975dfa1179a","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":214,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"8a50090e-9549-4881-ae55-baa22ae2a223","block_type":"box","text":"6","page_number":214,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"78bf27ea-b8d6-4603-bf49-526925c0d297","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":214,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"5a9f6aaa-d764-43d7-b58c-2e4dbc788097","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":214,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"6d46e036-9790-419d-b907-0a87f784651a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fe66c30e-0b64-47fd-bbde-e018b002b291","block_type":"box","text":"Global Principles | 6","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0975bb47-f81a-4c2f-b9ef-511a15aa07e5","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec7b4961-d6ea-4d43-abe8-34bfaffd503e","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":215,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"d55d41ae-98fa-42c0-b18e-741595bebb67","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":215,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"d4902118-5d19-4af9-a830-b4d2d7d7075f","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":215,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"6ca6d145-d534-47ef-8360-ab1e2f9b14cc","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":215,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"65c9cb7c-83e7-4eba-856b-6b764cda29d0","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":215,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"31fb6b5f-d7c4-4e85-81a6-beb5dd0687f1","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":215,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"ed6c6b79-b4eb-4af4-8ee2-73c8820dd247","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":215,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"95701157-b533-43ba-8f41-33e3d31a791f","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":215,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"8ce0df16-3514-4e5b-9909-7b4b36d97dfe","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":215,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"4052cf7a-633d-463e-b182-762ec372b9f2","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":215,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"17e656f8-c27a-4470-a58c-1c95f23e4228","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":215,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"167bca8c-4120-4f0c-8fd5-c7bb3c1e8fec","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":215,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"2a1f0a9d-c6e0-4c1d-852a-a92713cd5969","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":215,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"10e495f1-58df-4b74-b37f-e3b38010b35a","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":215,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"7b2924fe-b28a-49f6-91d0-63a8d9196b28","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":215,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"4dbad0b1-1bc2-448c-ba67-d9c3da4cc9df","block_type":"box","text":"systems.","page_number":215,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"9ff45a72-c9b4-499d-a25a-33ee4e9a0b04","block_type":"box","text":"7","page_number":215,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"bff0fd09-2b07-4736-a103-b54629099fa6","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":215,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"8be5cc09-6e46-4b4d-859b-1579924fefe5","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":215,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"cdbc03c2-2219-4a04-8978-5ac8a3e90d80","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":215,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"24ebedff-6cfb-46cf-83dd-fb1af35e27e3","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":215,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"a72735f4-382b-4622-b461-fdece378f0db","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":215,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"677f6b48-cc52-41d1-8e56-61cb9defa0b9","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":215,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"c07f1cb2-3495-4a5e-b66d-4b64df287fec","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":215,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"473af127-fe87-4e95-bac4-a86202c22023","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":215,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"ebf30a85-0660-45e5-8fd4-ebf2e69e7a56","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":215,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"35b375b7-173f-4a47-b3b7-7205e2405390","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":215,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"3b13f394-c4b2-4bab-9562-ca35fef46aee","block_type":"box","text":"or internal audit function.","page_number":215,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"c43a14fa-9f8f-456e-83f7-9c15b76b571a","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":215,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"49a19079-c659-4c9b-bee2-4091fb0b02f7","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":215,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"bce6e965-7b60-4a2a-addf-8166e1c5ada9","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":215,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"1835a8f2-74cf-4203-8cf2-e83ec9f1a49d","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":215,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"b2558f4c-e140-48e6-b767-c0786d3b028d","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":215,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"9f3dab52-c83a-4042-baa5-0109bb7f6094","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":215,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"0fdd5e0e-8b5f-493f-b013-f5e58eb2c4e8","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":215,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"509a61c6-b2a8-4bb8-a534-4f266cef59e4","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":215,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"1d213f62-fe24-462b-a991-7ae664a0e803","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":215,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"5c4b6ef2-d495-4cff-a495-558e5bb74e18","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":215,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"1242a9f2-e82a-4d94-b051-5386dc44e248","block_type":"box","text":"risk.","page_number":215,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"d602d81f-ff7d-4ece-84d8-6b1797df222b","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":215,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"20779fa7-3da6-483b-a185-157c50b01b53","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":215,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"c00a91ba-bb1f-43d0-902b-c64387b2e238","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":215,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"4b8b09bc-c921-437d-9423-fe2491ce0fa8","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":215,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"72e7af68-83f6-4060-9882-63b0bc8a9422","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":215,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"e1442208-de15-427f-b2db-08366bbba237","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":215,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"eb03e35c-e743-4b55-9567-beaa156ea159","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":215,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"392a8ac3-3940-4055-9536-10b7776e9a28","block_type":"box","text":"7","page_number":215,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"9dd44717-c6e2-44df-89b7-0cc8e10fcd20","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":215,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"a5543584-dfd1-464e-bfeb-0f35a032420e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":215,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"3673e5f9-68b3-4238-a59a-9ab1e0728983","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":215,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"c9a3749f-ba83-4682-be8d-fabee0ac410c","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":215,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"226e19b5-4e26-4d76-a6b5-36d0ecadeaea","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":215,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"4fb889b9-95ee-46a8-854e-14a258464178","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"287998fa-34ab-4f0b-9fee-fd686ead3571","block_type":"box","text":"Global Principles | 7","page_number":215,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"3efdd33a-a6ca-4c6d-a66b-21d1365c7ba8","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e24558dc-f312-49f4-918b-c57d75f7f31b","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":216,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"617762d6-0253-4c4c-b0b8-fab04ff1f7e0","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":216,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"efac681e-eb3d-4836-a547-4beff237f70f","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":216,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"bef6f67b-6f55-4312-a358-9f251685c249","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":216,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"ed779b83-a168-4494-9729-a74d67271204","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":216,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"5cc504d0-72cd-43ff-91d0-86b51855b3e0","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":216,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"673d8b13-0ea4-4296-85d5-814eab5011b4","block_type":"box","text":"minimizing costs to shareholders.","page_number":216,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"157a2d11-ab5e-4fb8-8114-d1bf5ad66cf1","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":216,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"cf7f77f3-5dd2-48ec-9a0d-667353bc5ce6","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":216,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"a7709476-8941-40a1-b8d3-dc9c17881d46","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":216,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"03171315-ece7-4114-a609-f538ddb3cee4","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":216,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"300f8248-01a7-4fc4-a7e5-f46d728aab40","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":216,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"474f055c-224b-487b-82b1-0df572a7e94c","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":216,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"c976ab34-434e-4562-998c-d9db5b1f066a","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":216,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"8c8858cd-f76a-4175-8818-a879b1ebc4ee","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":216,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"09f6ba4e-6545-4dd2-80ce-54cbd7d24901","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":216,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"788f1a23-ff63-4f1e-a01f-544392b17e30","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":216,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"d2b2e30f-8d42-43b2-ac1c-6af469cb2d8e","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":216,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"e9594709-bf11-4751-94cc-4c742047163b","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":216,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"ec7dd1c1-6a31-4abe-8666-fc79c0025de7","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":216,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"2657292b-46a2-4bb1-ad10-ebe9fd2224ee","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"c4190e0a-5d72-4c78-b4d0-0dd47d9a2f4b","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":216,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"930844d3-c95f-47f0-b7a8-8cec51adf2de","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":216,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"4a68d915-8456-429f-a010-f89ecc5609ee","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":216,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"df0932e3-4dd5-4e5a-90ef-49f74b2476b9","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":216,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"0f571ed3-1a2e-4cf3-bb91-625eac105189","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"a9db4ad0-3397-46c6-ac35-b385086cf40d","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":216,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"1d0cbee6-393c-4978-9c6f-ad07e189151a","block_type":"box","text":"ownership.","page_number":216,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"f332b64d-c8e6-4d14-87e3-ddff7eaef631","block_type":"box","text":"8","page_number":216,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"cb8803a1-bcae-4fc3-bc21-c0639d8ce6b2","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":216,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"be4e118a-046d-4fc1-888b-441cd160cc00","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":216,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"39f81ad9-9307-46be-b530-cbd2c0bcaf94","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":216,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"6a1ce324-e959-4186-b05b-4799a084bb9f","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":216,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"4fb06ca2-4034-49b7-bcf5-b957506963a5","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":216,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"a589936f-5979-40ed-846a-bfc0fbe91ead","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":216,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"13fc39d7-62cc-4217-a26e-09c8ebda50ce","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":216,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"387d5792-1861-4337-b0fa-efd1be99c4bc","block_type":"box","text":"results over a period of years.","page_number":216,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"36c9ef79-afcf-4ac2-b6db-1f0514e1a69a","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":216,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"5e94392c-4524-41e4-bb97-8e47728583e8","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":216,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"4f1645e9-ab65-4786-98c4-2fe0bb8e52a4","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":216,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"ad0778a5-84d5-426e-8c1a-ec8ad3c0b65a","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":216,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"20fd1732-0efa-4308-bd7e-18dd928371a9","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":216,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"be679293-bb7f-4604-9a68-33c872ccab53","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":216,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"bd1dba99-24fd-4e66-8803-8a997ece5414","block_type":"box","text":"executive compensation strategies.","page_number":216,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"71f8542d-9767-41a6-a804-77e5d3f188dd","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":216,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"eb47050b-8bb4-4412-b06a-432dae38d010","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":216,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"ff00ecfe-197f-4f25-bbc3-f92905169e67","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":216,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"5ca16795-cd79-482f-8fa0-09748004ad65","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":216,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"0844a5e4-adca-46dd-b272-477400ba52ea","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":216,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"1dd27aba-d9f0-4d65-8997-3f9147c4ccf4","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":216,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"d9ed4435-3118-46a2-a0e1-d639a18aa70a","block_type":"box","text":"8","page_number":216,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"90b141bb-987c-4520-a95a-11bf021ab4b5","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":216,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"dd3b766c-ed15-4433-b693-1fa4fe2b524b","block_type":"box","text":"different markets.","page_number":216,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"aaa9f063-cf4e-4636-946d-849f84abd68a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"188067a0-cab7-4e28-afaa-e0eafee62ef6","block_type":"box","text":"Global Principles | 8","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"34c73022-8d62-4875-9806-41fe901a5bc6","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49311cb5-9a5c-40b6-8eca-5dbd696d83d7","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":217,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"56c1ad59-d81e-4528-8428-e49a7ec71512","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":217,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"e92bb2df-8644-4e72-9aab-886732e05920","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":217,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"c09c8f75-782d-4be8-acd8-8cc7890d5f8d","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":217,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"cfbedc53-f8eb-4d6e-9a45-c9018e33a4ad","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":217,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"389c436a-6380-4ed1-bc0e-44fa8e88fd06","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":217,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"6a0583cf-65a7-4f7b-a04d-a0386534bbed","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"da3f5505-2d0f-41f0-aa53-28d35b6891fe","block_type":"box","text":"whom they are charged with overseeing.","page_number":217,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"cb9b6318-3a2b-47cc-bef5-45bc2162f568","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":217,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"c04ccab3-f264-4ca2-8645-ffc8e5d38b65","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":217,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"7fcd2396-1200-40e9-bc54-345df1e6aa1a","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":217,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"97f90d4c-0f4c-4977-bd0a-75400d20d113","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":217,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"58b881cf-3d07-4e93-b41e-32d1c9376053","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":217,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"3e6ba19b-5dd2-4309-931c-c2c2f624071d","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":217,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"baace0fc-374b-4a52-a8fe-6d88b9962a2d","block_type":"box","text":"structures.","page_number":217,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"3c808172-6a71-4367-af40-eadab34c0ff9","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":217,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"44fb22a6-11cd-4a64-9d52-80315b4070ed","block_type":"box","text":"Corporate form","page_number":217,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"cf097232-3b90-4568-84c0-df94c7c18186","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":217,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"af670f10-d789-4961-aebe-e2850d6de6e2","block_type":"box","text":"the company’s purpose and business model.","page_number":217,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"03800f6d-acb3-42db-a03f-cab8a284fec0","block_type":"box","text":"9","page_number":217,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"2e466d41-bdaa-4df9-b336-a13ce5db6fc2","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":217,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"6d32a09b-b108-4932-a43e-4a76d264971e","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":217,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"0db2a0cf-8a10-4d3e-ae4d-3d1935ba37db","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":217,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"aae65b8b-694d-42dd-9b21-cf0cb06aafa7","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":217,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"8d0612ac-bd8c-4860-bd96-d4edf31a9b12","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":217,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"2f1f414a-77e7-46bc-ba27-f85946fc847b","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":217,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"5672bc05-4f4a-4ebf-b76c-d5b731223d45","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":217,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"9a9aefe1-bd81-411c-bc84-64cecc4b471c","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":217,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"50ad3dca-fc29-483e-ad90-5b340c2ca1ff","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":217,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"d640f4e5-37ed-43eb-9b8d-0f55465922c4","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":217,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"331addc7-2489-4508-978b-00e91875515f","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":217,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"cca12639-1c5d-47c5-9e9d-eb18b71f92ef","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":217,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"813c6a67-e87a-496c-ad4f-9b215c05f385","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":217,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"dc532049-a7ad-4694-9475-36074ce656ab","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":217,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"0a739438-2aa4-49fe-bef9-c04a5d2cc5cf","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":217,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"3f152001-c184-4847-9f81-ddd4ab0cfda8","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":217,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"607052b8-0a72-4cfe-a8f4-137e3c80f2e9","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":217,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"e398ae14-923d-424a-ab17-86f9ab69cd46","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":217,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"9363a3c7-7dff-493a-bfcc-5d585fac3a9e","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":217,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"22bd9aa4-d703-4646-a4bb-c1d5bf452d45","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":217,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"eb433732-6d3a-43c5-b186-a3371b572d7c","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":217,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"5dbb7104-7b58-4222-909f-204b336ce6fa","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":217,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"618ae07a-d0e4-4b35-963f-cc15f9598730","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":217,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"cb8b4a23-ee66-4474-ae33-79616733d52b","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":217,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"ee9b079c-5760-4962-9cbe-5c717b1b3797","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":217,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"b402c3d0-4f4a-48a5-af39-bb42f5198166","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":217,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"5b66c1e9-df6e-49be-961d-bb1d3ba59dc3","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":217,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"68c163d5-77a0-42fa-b0f4-a197165b14cb","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":217,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"f247e1c9-cf43-440d-b7b0-f5661741aa61","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":217,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"77c73923-7da7-49fe-a9c6-39fa2da52634","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":217,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"418573ab-aedf-43f6-88d2-67ecb435c030","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":217,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"fd333138-1444-4e40-873d-b0bc24b20227","block_type":"box","text":"9","page_number":217,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"3da4fecf-8178-448f-a3ad-58b5f430e8c5","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":217,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"c8afe502-6489-407e-a566-b8193d23435c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"33c0dcf5-d241-473d-8572-0b4daa78f29d","block_type":"box","text":"Global Principles | 9","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"2807cf3d-992d-4afe-8cac-9b09f8442983","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"355e8932-eec2-4ed0-9050-854a8a9cbe3e","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":218,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"70ca66dd-35e2-4957-939d-ff177bbb182e","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":218,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"bd9fff02-4c57-411a-9c3e-1087f880ca8c","block_type":"box","text":"long-term financial interests.","page_number":218,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"6cedc766-9791-433b-9b27-20a2d393e992","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":218,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"eca51ace-3d1a-4939-857c-b576d7f3c789","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":218,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"1158f9fa-9e0f-4590-bded-cce13d5a5318","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":218,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"67736d2f-b2a9-4e2d-948f-a3817b200994","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":218,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"633faf07-77bc-4eff-ac4a-d3c934c46166","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":218,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"f4749d5f-3839-409c-8efa-351c79aa9cfe","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":218,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"d5388801-0d96-4827-9e55-c301a5fba8fa","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":218,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"faedf73d-bf37-487d-bb8e-9b892d3f49dd","block_type":"box","text":"term financial value creation.","page_number":218,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"d456f9f8-6a91-4ba0-88a1-c7ef417b17b7","block_type":"box","text":"10","page_number":218,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"bac09699-0550-4d57-a6e7-9f65221f949b","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":218,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"0cb5fff9-612a-4d3a-82b6-21b0cd8ba3a6","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":218,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"bfe9061c-46ed-4321-93ad-7db62113e78b","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":218,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"3ec7da43-1b63-44ed-8cb1-1c7c74fd9e08","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":218,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"f5c6dab9-e136-4af8-b78d-47da083d80e1","block_type":"box","text":"industry-specific metrics.","page_number":218,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"9fd5632e-9554-41ab-96a8-2416a4a95482","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":218,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"ab460671-00ee-446f-b569-9fc785de67a5","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":218,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"5ab6fcad-bfc6-4f1b-8d1e-b7a5ba51fdd9","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":218,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"c1b45dcc-9e13-45e5-8ce3-8f8ee0691ff2","block_type":"box","text":"11","page_number":218,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"9d0f784b-4808-475b-b858-e93bbbfc893d","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":218,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"70c1549b-d27d-42d1-aa89-8398bd763b5a","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":218,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"d5b4f038-90e1-4818-8d5a-cc3e7a8df3aa","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":218,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"c6f980a9-d802-4ff3-a49b-d58d4d685351","block_type":"box","text":"specific.","page_number":218,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"d2c23e25-6846-47a4-bb36-8941ca7930d6","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":218,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"34a86367-c526-41b1-9182-79a1db9dfe4c","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":218,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"7d444da6-76eb-445e-af38-e64529770c05","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"a59df612-984a-418b-9ad3-ca740cb6c138","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":218,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"d6c742e1-82f5-4e97-a4d1-6b17949652fe","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":218,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"ae2dedbb-86e0-482a-858e-f63b6098c238","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":218,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"580cc981-2ced-4d6d-8bcd-abadcf425383","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":218,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"368de0b2-a230-4a5d-935b-e2e2b6188b44","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":218,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"c0877005-07e5-4fc6-bfe8-343513d312d4","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":218,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"7c580835-1759-490c-a17b-1187b6e177e5","block_type":"box","text":"10","page_number":218,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"7fd3d673-6e49-4e96-bd94-a97d8bbb8097","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":218,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"911e7222-9210-4ee4-b3df-2b6a7c05dc08","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":218,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"0a1bb21e-0ecf-41d8-8574-63e1dfa0ed9d","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":218,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"8e80f97e-2cfe-4bc6-91db-59c91fb761ed","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":218,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"c991d897-20e3-4e16-835f-eedb64a63a9f","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":218,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"238cca1d-ca4b-48ac-8177-813a18f88577","block_type":"box","text":"11","page_number":218,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"55d931c8-b7df-4b5c-b9bd-763078f0504b","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":218,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"55d96263-1d05-4974-b5b7-d2b09a4242a9","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":218,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"143b241c-8d39-4202-8293-01ae60f1ef98","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":218,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"c857e570-92df-4a1f-b7df-85f00ca120c9","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":218,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"3a5fe490-8f4a-4c4f-b7f1-5412812d955f","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":218,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"bd57aa7e-145a-4c1d-8fca-e26128be5f34","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":218,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"e619d53a-e110-49d9-a8e3-35bb5e0f33a3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ac6b0bab-90a0-4dbd-b0cd-f95d18449164","block_type":"box","text":"Global Principles | 10","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"bb94a25d-f65f-413f-a495-daac87841cfc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6dffddfb-fe2b-4ff0-94f6-2b4732f39be4","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":219,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"807064b6-f624-4f5c-9699-057f3bd7c66b","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":219,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"c8efea54-ac85-42df-a5a6-8ef5461a4d56","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":219,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"c073f21e-3e15-4c33-86f4-394864a21551","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":219,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"477ebc76-77b1-4d16-8fb7-3137f9a74030","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":219,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"f11b2e42-7c1a-4002-8e59-7d77e4e955c6","block_type":"box","text":"12, 13","page_number":219,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"fcee0c47-e6e5-46e0-baf6-919e17dc35a4","block_type":"box","text":"From company disclosures and","page_number":219,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"26b0e13a-aedd-4168-8b55-f410e749d023","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":219,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"0fe4a4e3-0ad0-4b87-b67d-f98e24bf3b0e","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":219,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"7c5dce3c-e596-4405-8dba-87400ccc0a04","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":219,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"1e885e2f-e658-4b8b-aba9-c384e96f5c27","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":219,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"e25772ac-3ce9-4bda-b751-05dd45c8d4a1","block_type":"box","text":"viewed as best practice in the market.","page_number":219,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"52a0a3f1-b97e-456e-aa68-0429f569efdf","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":219,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"b17f8b43-0b73-4045-9e25-d98e4c04d411","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":219,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"90a5c00e-585d-456e-8209-bb5b2d0aba95","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":219,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"c3a7c077-3972-4865-9a29-34ffe13cc702","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":219,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"c59eefed-9eef-4bd9-a1fa-e22e209f23ce","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":219,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"07302002-5270-44c2-8ee3-02eda05eaf8e","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":219,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"214e33fb-9277-4d22-a3bb-aba5a5d7c1f0","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":219,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"a1f1b13c-7ef0-4abb-a895-a208e6cc196d","block_type":"box","text":"interests of their investors.","page_number":219,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"adaa67b1-98fc-47c2-9842-d727faae5349","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":219,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"1036dc73-20ee-43d0-b3df-9e62a7b7d56a","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":219,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"af7e64f4-c320-4b5e-92d7-57978c8b915b","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":219,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"0d33e49e-db87-4d6c-82f5-2dbb40533529","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":219,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"233238fa-7f67-42a9-83f7-906fbf6536b3","block_type":"box","text":"good-faith basis as methodology develops.","page_number":219,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"bcbc4550-e071-4a6b-a60c-64c5841b6c5f","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":219,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"9ddea259-e8c3-4c88-837b-e23c594653f1","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":219,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"5820e52e-1228-4edb-9c42-75c9237c31b1","block_type":"box","text":"generate long-term financial returns.","page_number":219,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"928d4e91-077c-4c78-a09e-318844ebd9b0","block_type":"box","text":"14","page_number":219,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"79963587-b682-41b2-aa0e-e8ecca91e8da","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":219,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"5f4b16f4-3e26-405a-8731-65f69e68d865","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":219,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"8aa6b39a-b2b7-44c0-88eb-1d6c3302d5bd","block_type":"box","text":"15","page_number":219,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"191da9b1-f17a-4bde-80d2-d2866e15f856","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":219,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"c1696b54-d11b-472d-a2cc-53831c346a5e","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":219,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"be7f5f89-9d28-47d9-8e1d-93ed94e2711b","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":219,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"e409da4a-02f2-4097-ae3f-6df0920045c8","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":219,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"65ca1350-de5e-491d-aab3-c1ac227b4c3c","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":219,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"02414926-07a5-482b-94a0-9b8b077f214f","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":219,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"0b7977d3-7b64-4b39-a0a9-35d9254cdc9a","block_type":"box","text":"12","page_number":219,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"932f0cd2-35a3-4058-9838-54500fc45863","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":219,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"cd1b5499-f52f-4d0a-9699-2203588404ab","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":219,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"b9e84306-9225-40cd-9d9c-27eafc20a3ad","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":219,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"5781edbe-c91f-46e1-ab69-48b043d1c5a5","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":219,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"111a122c-d302-4e9e-95a3-64a675fdf71f","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":219,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"43bf2f33-ffe0-4a7f-89e7-db3f3846099d","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":219,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"2ea8856f-323f-4139-a22d-e1c03f072fbd","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":219,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"f14598a9-8277-497b-a122-dacc6263416b","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":219,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"f1165f67-05a6-4d7f-a021-15fcc91af7f3","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"e929b794-4310-4755-96d0-55d1f58ca81b","block_type":"box","text":"13","page_number":219,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"7005c21d-cce2-42e9-b8c1-c07ea09a468c","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":219,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"a5b0f731-8079-475c-9966-630a4dd37cbf","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"2721b1ef-902d-4e70-ae79-7794b63bd175","block_type":"box","text":"14","page_number":219,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"6ba091d7-a9b5-400d-bac1-75c9c2f955f5","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":219,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"6153e2d5-52cb-4fd1-a110-753ef83e74bc","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"76507fd2-9233-483d-ad54-b7191a11fb4c","block_type":"box","text":"15","page_number":219,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"16108918-05cd-42b3-bab6-b1eba9c1bf3c","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":219,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"f98b2bea-a253-4ae2-8465-848cd4d21ccf","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":219,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"9669d903-c5aa-499e-83b0-0116bff348d1","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":219,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"50a5d879-f633-4833-91d7-927e74d6b1aa","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":219,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"c3a5a037-135d-457a-813e-e2b181273991","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"2355697f-5294-4bc9-a776-d9eacdbfa285","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"56275e5d-9e3f-4e87-a3e6-7155074844f2","block_type":"box","text":"Global Principles | 11","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"76fafc1b-5544-45eb-bd4c-dd79a73853f1","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbef3303-0f63-408d-bc00-66944f9e6f2d","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":220,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"156c41ff-c807-4513-8b18-91e5dc04afe7","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":220,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"3940622a-513e-4162-a46d-79e7041ce310","block_type":"box","text":"16","page_number":220,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"ab23437e-8218-46e0-8d79-3d45b0d9db39","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":220,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"d98c174d-adbf-4de0-9056-ede9beca22ed","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":220,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"932a90ec-042c-4dbb-8c91-9730f4cc7363","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":220,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"405442da-9a62-4ac9-b8e2-8f6c0c586977","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":220,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"51384bdf-c955-4094-85d1-d7fdc0ac6092","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":220,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"aac591bf-778e-4223-9e74-7de22345c0ff","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":220,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"8be28d71-e5b7-4310-b304-db1a895bce99","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":220,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"d8fecee8-44f4-4bdd-a609-105ede3da8e7","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":220,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"9fcc8759-4425-4902-b647-03794e56d1ca","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":220,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"91f712da-d290-4fff-affe-8e5d51b838ae","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":220,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"1679f467-1f55-4d46-8891-684978980231","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":220,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"7f5c5dd1-9412-4587-a2f6-ad76f63e5aca","block_type":"box","text":"impacts.","page_number":220,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"5dac3171-9534-4fde-9780-8c0dfdfc9bf5","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":220,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"9b73f31f-f32e-4941-85bc-157176b753b8","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":220,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"7cd088e6-2bd4-4669-94c9-b388dfed6041","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":220,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"48efee65-b5b1-454d-ae55-501b4a62551b","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":220,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"bb518265-e5cc-4104-8d49-bc5e3bfc24a2","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":220,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"f9abfc9c-e8c4-4f06-b18c-9e46521a1611","block_type":"box","text":"clients at the global and regional level.","page_number":220,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"69870ff4-05f8-40e1-b345-8aaf0e72372d","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":220,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"85640c60-33c8-4a88-ba9c-6642e8f5c306","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":220,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"7a1ed941-2f1e-482b-81f5-a674606cfc1b","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":220,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c321a532-b487-4236-bac6-f583357a2f15","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":220,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"28d45a37-f906-4650-a850-8d58688561c3","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":220,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"224444d3-b671-4c3a-826f-e73c8e94250a","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":220,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"b53a4cfb-946c-4ece-8714-06827b14d7ad","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":220,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"f1498e4e-a85b-4d5b-b9b0-99094d4acd83","block_type":"box","text":"are independent from the investment stewardship function.","page_number":220,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"0db9f818-ddac-4a21-a689-5ea1ecb19424","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":220,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"501de233-c2b7-4946-9e1a-b8a53f927699","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":220,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"56731fe2-beb9-4f6b-995e-c1ed9e772417","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":220,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"9a9256ad-4492-45a5-a89e-6c27085df664","block_type":"box","text":"VOTE EXECUTION","page_number":220,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"010d4e30-0daf-4cca-8ab2-ffc719deb73a","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":220,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"ea06fb29-a8bc-456d-89ec-bb4f6bee142f","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":220,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"828ac4b7-5b76-46e2-9104-bd4e1ae78d98","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":220,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"f6e5a09e-d90c-4718-9fa1-a01c75f744b1","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":220,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"971ed573-8d2c-466e-a030-209ae8318c5b","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":220,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"40b4312f-2905-4e52-a351-f297ead89dad","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":220,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"8891e2c4-394c-4e28-819d-b4a892cea59a","block_type":"box","text":"management policies and procedures,” below).","page_number":220,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"e0ca4618-e4b5-446c-8a1c-0c756ae048c1","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":220,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"cb0e0c93-4afe-4788-b920-1779a234a53a","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":220,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"8c77c097-bfcb-48b7-8869-abfc234475fb","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":220,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"d0968ad0-3b3e-497c-8001-ddee22fb7677","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":220,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"be18652d-75e2-450e-a393-47c1d0cfe7fd","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":220,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"df91e5da-97fe-4f66-8f19-4c557d8cd3c7","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":220,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"34140c26-f02f-4fa5-b100-71bb0e2497d8","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":220,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"9cd8e22e-800d-4f25-8198-f649a3bd268d","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":220,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"de980f2e-3e57-4dd1-bc18-13a550ea256b","block_type":"box","text":"16","page_number":220,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"7551ba4b-40c0-4263-bafa-bf1d0b885011","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":220,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"70f3673e-55a2-4ac7-99e5-ac67c1c209cc","block_type":"box","text":"December 2025.","page_number":220,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"acce710e-dd1b-45a2-a296-7771e029bfec","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ebcfc561-d6b5-46d5-bb2d-5d8e299b8797","block_type":"box","text":"Global Principles | 12","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ba95a711-5132-4aa0-b5b9-5bd94febe2fc","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64bd1c68-961e-4f06-aa35-4bba09d2f7f0","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":221,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"0098076a-b27a-435f-b5e6-afcd0e862d41","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":221,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"cdf524d3-2319-4eea-bfe1-93df99461837","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":221,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"85b22592-0297-48c1-b9b7-6af1eee1fc68","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":221,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"1245daba-cc58-41f1-939e-ec84e1604bf1","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":221,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"d29b7bc4-fd5b-4363-a6a9-61b67738fa62","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":221,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"9618be9c-e619-4b8f-be14-6d6f0d71b6d7","block_type":"box","text":"enterprise-level vendor management activities.","page_number":221,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"2c588fb6-a1ce-476a-b735-8a2d9cd3a49c","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":221,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"31febbe6-93ce-4c31-b6bf-465f04a6220c","block_type":"box","text":"activity. 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Lending securities","page_number":221,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"8e1c7165-8790-453a-ac46-7c878031a9b3","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":221,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1c67e596-0ba0-41f9-9667-06f9e8eede56","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":221,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"fdf85ff0-85e9-4274-8126-f86b5c6aaa65","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":221,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"c754cef2-9859-4a4f-9bf4-842a00e1f2e5","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":221,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"b3273bd5-53d4-43ff-8f27-ab10d85c7b38","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":221,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2cc1c9b8-1f29-417e-b138-690f3c101cbd","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":221,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"79977dd6-980a-42fd-835a-4c7fc0527f3a","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":221,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"d011e984-1f31-4bec-8496-c70d1802fd71","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":221,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"7e3e4bf8-8a19-4afd-962b-bfc23ea4e7c7","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":221,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"3e90a915-b844-4e42-a489-27ac595e6f37","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":221,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"2ff82ea6-a992-4e8a-b9ea-dc081da0316c","block_type":"box","text":"of recall consideration).","page_number":221,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"3f290c69-95f1-4878-99cc-78670e987306","block_type":"box","text":"17","page_number":221,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"30d2895a-f862-47c5-bcf5-bd27b8d43f59","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":221,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"1d5aa18b-b617-4447-ae42-5e4be7539031","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":221,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"626f1800-a6f7-426d-abd4-98c7c0c5aa09","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":221,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"afbd0f05-f1c0-4430-afd1-e70588dfae09","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":221,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"4a3c0a8a-0f15-471e-ae42-b7eb70ad37a9","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":221,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"5d3429df-923c-44ae-925b-5aa3079be74d","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":221,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"b28737b5-31c2-43df-80f8-97ed7d5d1e33","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":221,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"6e6c52fd-7df0-474c-8b67-d3d2d0453468","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":221,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"951420d7-cb48-4542-839f-93418f2fafae","block_type":"box","text":"and may modify it as necessary.","page_number":221,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"fda414d8-53b7-4fad-a68c-8574b51b71ee","block_type":"box","text":"VOTING CHOICE","page_number":221,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"41496773-431f-42f0-a1c4-31daa1aa90f1","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":221,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"647868f2-bced-4f9f-836d-bd66555b36d7","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":221,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"7a7a11da-21b3-4492-8e55-f9b31b2168bc","block_type":"box","text":"18","page_number":221,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"b2a2de9f-4732-45a9-9965-0b068034c4f3","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":221,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"eacffb74-6feb-4b6e-989d-e0702987028c","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":221,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"2ac72f30-1aaf-49a6-9c0e-015a6d669f68","block_type":"box","text":"17","page_number":221,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"95584119-92b5-43d2-aa12-71f9ca8462e0","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":221,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"0534f87b-cd53-4486-8a40-aea1c83146cd","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":221,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"f969cdd0-1e05-4b2e-9301-cf43962abecc","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":221,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"b9c05c66-e715-41af-bb48-fa526efc9358","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":221,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"575e3309-1190-4af2-8fc6-29bbe1b011aa","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":221,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"3878f46f-594b-4f2b-88fb-0c907029bfce","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":221,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"a9498f2f-2ae2-421f-9776-5681657374b4","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":221,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"1b242009-ca78-4c61-8fa8-384ca0710621","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":221,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"8543b7f3-b967-482e-a92b-1811180e68ca","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"67713c01-3596-4d4e-88cd-55c5b0a7f3ac","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":221,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"fb228dd0-0e38-4b68-b688-b34fc63f1f32","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":221,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"599004ef-5ae9-40b4-a2ce-02db1fc56869","block_type":"box","text":"including the decision to lend securities.","page_number":221,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"142f8138-81dd-4149-84a0-5c170df7b102","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2d04abe7-cb30-49c0-ac51-8fc1e70d80b2","block_type":"box","text":"Global Principles | 13","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1eeb1cb0-21ac-41be-bfb7-90c86552faca","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aac9dcf1-8c4d-4d38-b6fa-09cc492fe541","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":222,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"a94e02f3-cc59-4297-84f5-e6e7067795bc","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":222,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"7c550687-25f6-4b6e-ba99-af1470878181","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":222,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"3f846650-cd90-468d-ab8f-0be807b3dfa9","block_type":"box","text":"19","page_number":222,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"c1839080-9b58-440a-a88e-66052bfc80fa","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":222,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"50379c8f-657e-45ff-8007-6692aef5d1d5","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":222,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"c2ae6a71-0be9-4432-bce4-a3297dcfbb18","block_type":"box","text":"20","page_number":222,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"7911a4e2-0e5f-4e42-b50d-5e8a8977eeb5","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":222,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"10f518ac-0e18-4ae6-a1be-bc6f93361bf3","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":222,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"caba3846-e1f0-4d8a-bbe1-63d0f269f336","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. 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We inform clients about","page_number":222,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"fe992693-2041-497e-957a-2fe8639f39cc","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":222,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"20100b79-b250-4066-9298-ef322e12b515","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":222,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"f1071b2a-94b6-453c-ae05-67e80f6fdfc6","block_type":"box","text":"invest on their behalf. 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Further, the Guidelines consider the","page_number":228,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"2848b268-fbd1-400b-a1a2-c870f228b94b","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":228,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"ec732034-4241-424f-adcc-a20bfa78fe9f","block_type":"box","text":"does not.","page_number":228,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"c33994d1-3250-4424-9978-a0cb151469d4","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"b494df2c-d300-4d0d-be57-997143270d19","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":228,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"dcd85c01-dd92-4496-9d16-ecc19f4117bb","block_type":"box","text":"limitations:","page_number":228,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"dbd6c3ac-f973-4e62-89a9-1498e24fc244","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":228,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"b4365060-06e1-48c2-96ed-7d868806de82","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":228,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"1496cc4c-857d-401a-9145-69645db8d29f","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":228,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"c65ead18-1759-41dc-b721-95de17c11abc","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"6b9ede55-80e1-4fc1-8186-9ba33a87695b","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":228,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"98bfe1b9-8efa-4798-8798-1a615902bd83","block_type":"box","text":"The boards and executive leadership","page_number":228,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"9f4c526e-0c54-434f-9676-766edf00c923","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":228,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"aa4eacbb-8d95-41fb-b813-f3b0e75f8deb","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":228,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"f7e2ae35-5793-48fd-8b78-2f32d260b9c5","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":228,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"cd73d144-73c8-491d-b5a5-ee2cbbea9327","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"35664ab3-71fd-4787-842e-c06cdc399bf3","block_type":"box","text":"12","page_number":228,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"0ad51f18-15b8-4467-9834-b9880416d6bb","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":228,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"ca3f69b0-f0e2-4e06-973c-05e90ebb6d57","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":228,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"4204a1d5-b06a-4dac-92ad-fcee049dbef6","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":228,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"cc35a6e2-1b50-444a-96c2-1dacbb9d267a","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":228,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"2714116c-1b8c-4765-8936-bc42c05688b8","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":228,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"86ccc39f-372e-4918-9717-b07c3dc23d21","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":228,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"cb59190d-6028-4d14-9995-ea688cd0064a","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":228,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"99e1af94-0bbf-49e8-aa1b-81fa6bd73bce","block_type":"box","text":"Corporate Disclosures","page_number":228,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"0462cd84-c8aa-4aeb-9d5e-5088aa7a1460","block_type":"box","text":"13","page_number":228,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"6038a7bc-dd57-4d40-8f48-40b15509c7b9","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":228,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"e9800574-c4ca-4d43-bbce-1506f21876f7","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":228,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"a99d4995-798d-43e2-a61f-f15f3875ecdd","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":228,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"1c8ef661-4e57-4e03-9447-a55855cc35ec","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":228,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"4ff13029-9862-4992-b340-a2ccc89d5a00","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":228,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"25928bc1-4a73-4ba5-b9a0-086fb8e69d13","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":228,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"474a8bdb-f52a-4581-8c1a-11eec36fd5f1","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":228,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"48de4013-f327-4442-a038-e9b3716bb693","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":228,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"2f70817b-de1d-4e65-97f5-a0d5b6ec81e8","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":228,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"736dcf90-5807-44af-b9be-99a48a793e36","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":228,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"55d0fe55-f57b-4708-ae43-0c17f5ebc6bf","block_type":"box","text":"14, 15","page_number":228,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"640a4f50-a098-4c46-83b0-563fa488955a","block_type":"box","text":"IFRS","page_number":228,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"995f8b20-f6e8-4b3e-bd0f-dfab1b5a1824","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":228,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"e3459301-1d42-4b9f-a8af-1b015158dbe8","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":228,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"dc302e46-77ee-4219-b7fd-de86dd76c3e8","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":228,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"78902fae-09a9-4d92-acf8-1e7be903b433","block_type":"box","text":"and assurance standards are developed.","page_number":228,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"a7c56c39-6bad-45fc-b7c8-89e3832a9983","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"40eed834-39b9-40a4-a4c8-aba5503daa2a","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":228,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"f1e56bde-504a-496b-9c13-9b6f3b4665e3","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":228,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"3a1ee13d-a85c-4b66-8c80-380ff9d87d7e","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":228,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"ca33caa7-c314-46d4-8289-5b1ef1e4e5fd","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":228,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"829d3c22-a590-4866-a8f1-f343e8c57ed0","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"1a2ad7d6-0688-489f-afda-0263a3d56f62","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":228,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"030a204d-0d54-42a2-8f91-81a0be1e6caf","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":228,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"2c312685-1ff6-48b7-bfac-aa4810e2ea52","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":228,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"adb75aaf-adcb-4de9-be1f-71ac51b612dd","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"365c038a-101a-4524-b141-44d06c0f0635","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":228,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"8e329088-87b4-46e9-85dc-f2f9cb943587","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"6db8ddeb-6364-489c-b7cf-4e587b55d9d4","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"9aea0665-006d-4262-8166-338c8e283dc3","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":228,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"3f688165-ec8b-4a83-8417-2dcb941c411c","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"27b39198-8cb6-459e-a06d-d42f89b5489f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"0b9a0f02-6b7a-4507-93d2-f4febc6d16e8","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"ba505f9c-6336-4b48-95f4-f3f65a2d1cba","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":228,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"9eda7388-5111-4d70-a503-7ddf33aa2ec6","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":228,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"e5791780-d4ab-4c71-aae4-32041e6dda46","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":228,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"a6a77294-2a64-44e5-863d-1282b4cb9f26","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":228,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"d0e5b810-5b06-41f7-8cae-33b0a4d82ae6","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":228,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"3ed4078f-9dbb-4d91-9cc5-f8ca4408590a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1c8049fd-f8c5-4780-920f-b7d95fd5820a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d242cd61-25c8-492a-82be-224913da0d99","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8000e97c-bd73-4b11-aa82-5f9312136c3c","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":229,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"24a2e7e5-9a07-4182-b3ab-448429f78612","block_type":"box","text":"16, 17","page_number":229,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"6ea7afaa-29df-4781-b8df-1d72e9952f89","block_type":"box","text":"In addition, the dedicated team looks to","page_number":229,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"85a2c163-c85c-4fdf-905d-6a8670f7562f","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":229,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"a67e6be1-b16b-414d-ac14-8e7556903c7e","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":229,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"25a92574-ca2f-4776-88b3-fa36588595bf","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an important role in the low-carbon transition, scope","page_number":229,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"6b75f33e-3d01-496c-8792-85af44b2cc13","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":229,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"14fbe83e-2515-446d-be4a-63a93470e17a","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":229,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"bb13027a-5770-417c-b5e0-89924d9c03e2","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":229,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"fb0c4974-a14e-48af-a84e-da04eeae6357","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":229,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"58eb4529-af0c-4404-8e0f-ad72cfbcd859","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":229,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"86f17d7e-f046-40eb-8615-8cbf959ef6ef","block_type":"box","text":"transition risks.","page_number":229,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"9ff9f4cd-37dc-4970-b2f7-1b44c1da1b0f","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":229,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"c114821e-a470-400a-b9ef-685a5957926e","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":229,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"28448f40-bd7d-4997-9f5e-92e6bab88267","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":229,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"32e06839-5193-4a7c-bea4-94a3cf692e04","block_type":"box","text":"Transition plans","page_number":229,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"eefcded9-d179-4402-9955-5d26cba569e2","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":229,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"abc69762-9098-43c4-b92a-662a7f4a33ed","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":229,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"15eddc33-1743-4d04-9fe5-da3100811248","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":229,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"4b0dcb72-4a05-4a9d-add4-d12284e0c0d8","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":229,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"b3e4bcf9-2c29-41a7-9b97-2fa7e7eac6b7","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"3d97b3b7-eec1-40ff-9566-3c4d9cb67bd1","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":229,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"9e02ce14-ec64-4eed-9aae-f22bafdbf478","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":229,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"0bf7c5ed-a21f-472f-a3bc-24837c3b551b","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":229,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"e7d3b145-02aa-4e76-b592-4792c50b95b8","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":229,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"d2d2d5de-f25f-43a8-bd4d-8ad816e27838","block_type":"box","text":"material to their business models.","page_number":229,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"6a4eff4b-eeb1-4118-9be8-50846a5c4481","block_type":"box","text":"19","page_number":229,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"1add2e8e-5c42-456e-a294-c6d03c8c7370","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":229,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"87275536-e398-4a9b-bfbf-b8d0572ac816","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"7843f96a-6fbf-4d37-8bef-25662197c0ef","block_type":"box","text":"20","page_number":229,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"c5b1de1c-ad96-4563-be07-8c5da82401ef","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":229,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"502949e5-05e1-42c4-b5ce-371723dca4b4","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":229,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"6a0ea659-277b-4414-b91d-02810112554c","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":229,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"f6fc72e6-e5a6-43c5-99aa-3f363e0d6e33","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":229,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"033da4b2-bfcc-4783-bd81-8268966fbfd5","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":229,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"066f73d7-95df-4d97-89e7-eac4f7774e94","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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The Guidelines consider the whole board to have responsibility","page_number":230,"box":{"x":102,"y":148,"width":796,"height":11}},{"id":"487e9410-c0ae-48da-b08d-1def84ae737f","block_type":"box","text":"for oversight of the company’s long-term strategy, including those aspects related to the transition to a low","page_number":230,"box":{"x":101,"y":163,"width":765,"height":11}},{"id":"a76a9624-276b-4318-8024-b855f589e0d1","block_type":"box","text":"carbon economy.","page_number":230,"box":{"x":101,"y":178,"width":119,"height":11}},{"id":"d6832638-1408-4354-8838-c0592fc27b5c","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":201,"width":6,"height":5}},{"id":"ac7b0c33-99ed-4b2d-82e8-ddacdd1d2181","block_type":"box","text":"Management has established a robust low-carbon transition framework and long-term strategy, with clear","page_number":230,"box":{"x":102,"y":198,"width":747,"height":12}},{"id":"8f7832d4-f987-4547-88e5-2717a6f8f2a5","block_type":"box","text":"accountability for delivery by senior executives.","page_number":230,"box":{"x":102,"y":213,"width":333,"height":12}},{"id":"7e9a7530-3408-415b-9fcc-b28ed256a695","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":237,"width":6,"height":4}},{"id":"7c8a707a-385b-4223-b6dd-0d711c6b911b","block_type":"box","text":"The capital management strategy explains how the company allocates investments to (traditional and next","page_number":230,"box":{"x":101,"y":234,"width":758,"height":11}},{"id":"49a8ff44-3f6f-4f61-949d-5a52da5a9eb7","block_type":"box","text":"generation) business lines and innovation, and returns cash to shareholders, consistent with the company’s","page_number":230,"box":{"x":101,"y":249,"width":772,"height":11}},{"id":"e7db6590-a901-4bc7-b0e2-a8151e00b3b0","block_type":"box","text":"stated low-carbon transition strategy.","page_number":230,"box":{"x":102,"y":264,"width":260,"height":11}},{"id":"c90937a2-0e1d-4f76-84da-4e5290c09c13","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":287,"width":6,"height":4}},{"id":"21557068-a253-4953-afa6-d24db1dad1bf","block_type":"box","text":"The climate and low-carbon transition risks most likely to significantly impact the business are integrated into the","page_number":230,"box":{"x":101,"y":284,"width":807,"height":11}},{"id":"9a93d129-e8e4-4ba5-8b4f-0eb42b22f240","block_type":"box","text":"company’s enterprise risk management processes and reporting.","page_number":230,"box":{"x":101,"y":299,"width":465,"height":11}},{"id":"0a856c4c-050e-44dd-a6d4-70b3bd50878f","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":322,"width":6,"height":5}},{"id":"fe63e9a6-1126-4211-acf0-7a0e7cdb5758","block_type":"box","text":"The company has set scope 1 and 2 GHG emissions reduction targets, science-based and independently verified","page_number":230,"box":{"x":101,"y":319,"width":804,"height":12}},{"id":"9d648b55-f5c1-4754-8129-f6611f374c27","block_type":"box","text":"where possible, against a baseline, that are consistent with the ambition to limit average global temperature rise","page_number":230,"box":{"x":101,"y":335,"width":806,"height":11}},{"id":"0dd47a58-917b-42d4-9099-a51aeb3a2f22","block_type":"box","text":"to no more than 1.5°C above pre-industrial levels.","page_number":230,"box":{"x":101,"y":350,"width":354,"height":10}},{"id":"4bb95063-596e-4d99-830b-cdec4768e015","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":373,"width":6,"height":4}},{"id":"49395489-093f-466b-96ec-42bdc13df4d4","block_type":"box","text":"There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over time and its","page_number":230,"box":{"x":101,"y":370,"width":788,"height":11}},{"id":"4311aa62-c3ec-4bb5-bc75-e32ba212f3ce","block_type":"box","text":"long-term low-carbon transition strategy.","page_number":230,"box":{"x":102,"y":385,"width":282,"height":11}},{"id":"f10e3b40-a514-4196-b02c-5d3c5c3a573d","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":408,"width":6,"height":4}},{"id":"8a0233e4-0546-44ea-a4c9-e93acefa6499","block_type":"box","text":"The company is monitoring its most significant scope 3 emissions and disclosing these where it is confident in","page_number":230,"box":{"x":101,"y":405,"width":790,"height":11}},{"id":"2c76463e-71ef-49b3-a3cc-3e63526b3dd0","block_type":"box","text":"the data. 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Where the dedicated team","page_number":230,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"876fc1a0-b282-4719-a7a0-679502b78606","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":230,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"4eea2a8e-bbf5-4987-8f3f-7fc20e3ec919","block_type":"box","text":"having the most responsibility for the issue. 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Under the Guidelines, the team may support","page_number":231,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"43eb0739-96d6-42f5-b909-0c14fa2b2b8d","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":231,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"80ad3666-5c54-44e4-a104-0798b9de38ec","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"9e25bf34-d2c8-4cb5-84dc-b83067e1d2c1","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":231,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"09d1d41a-1c66-4547-aad5-cdad97c7003e","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":231,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"fdc36fed-c107-4d73-a18b-40536885d9eb","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"54b72a99-8da5-41b3-825c-834c1e929312","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":231,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"a09f0daf-7845-413b-864b-f9d7a2fc5c73","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":231,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"1dcaf87b-22d2-4599-98a8-c4100627f20e","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"d2f27ee6-22d8-46db-83d8-9c129377106b","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":231,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"bf509f14-77d3-4dca-8d5a-2da86b7487a8","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"c1df946d-5674-4626-a906-684664864821","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":231,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"94814b52-51d5-4135-aa12-696078add57b","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":231,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"5935973e-5caa-4649-babf-e350617e2e9c","block_type":"box","text":"25","page_number":231,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"496d962d-46be-4672-b4db-c298d3e1a758","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":231,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"ce36ec6d-3bf2-4f22-bf7f-89c6e0159a08","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":231,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"adb67ad2-0c0f-4bce-9991-856deddfaf17","block_type":"box","text":"RELATED MATTERS","page_number":231,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"dcbd5228-6deb-4ce4-8803-8e289e889a25","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":231,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"7c39cb12-efd8-49d3-a07e-a12309cf9337","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":232,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"fd495386-5a2b-463c-a237-c72c5dc53a6e","block_type":"box","text":"strategy and risk management.","page_number":232,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"641725c2-5571-48fd-8bf6-94c455f3ed14","block_type":"box","text":"Auditors and audit-related issues","page_number":232,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"c21f4559-4a9c-426a-b5a8-48ef995c9736","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":232,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"8e197486-e6e4-4d2c-a6f5-80b045e169a9","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":232,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"821af92c-0de1-4ea0-9a61-fd373f2b9b63","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":232,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"9d534a5e-a0f0-45c7-b463-73b4a078ec31","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":232,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"961179b4-b2d7-400a-a2e7-be198fc5d77f","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":232,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"824dfa7c-f9eb-4300-982a-121c260e5695","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":232,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"e04eb298-a8c6-4a12-895e-c369252ec018","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":232,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"85dbcdbb-af13-4f2d-8f71-a8c62beafcc2","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":232,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"911f90bf-f600-4a4b-81a3-07c54b66cdad","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":232,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"ee65bab4-8836-4881-8bb1-8d3b7046d400","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":232,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"b6707594-b99e-41b9-b440-7fa089cb6e67","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":232,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"fff6288b-f09b-4d13-850d-184d1975bab2","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":232,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"751b3961-6461-4e12-b7b8-9e87b6e683cd","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":232,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"6f2c3eb2-db57-4fd9-b256-65f0173aa555","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":232,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"45eca2e2-69ea-4274-adc0-bc665a5d39dc","block_type":"box","text":"stakeholders.","page_number":232,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"4e4c10a4-cf1d-47b2-9f21-d0c085fa4831","block_type":"box","text":"26","page_number":232,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"52789a29-0625-49cf-9fd0-c46737e04f54","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":232,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"26624f98-3c31-41df-879b-a7ef063d9c8f","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":232,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"05e53deb-ba55-4f00-af65-e9404bd9b7a8","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":232,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"52a4c1ce-22ee-4434-9dca-78a4f85b98a7","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":232,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"ce656ada-c918-4ba0-bb91-802a3127b074","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":232,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"41028161-ac96-4c01-ad2e-3ed6fc2f988d","block_type":"box","text":"26","page_number":232,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"147aedb0-b74c-4f6c-b9d4-b066c9b5ac3f","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":232,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"1357ca97-aaaf-4779-9a08-00e3a8a89d8c","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":232,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"94c3d87c-5472-437c-8b3a-d74c743ab41d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7070995d-f77b-4f6d-a89e-1187653a9313","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"35857f45-02ee-4c08-9d72-da1d506f416b","block_type":"box","text":"BNM1026U-6032633-19203488","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"473d8ae4-1160-4155-bb76-4b850f3795fe","block_type":"box","text":"Appendix 1","page_number":233,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"0552e5b9-d711-4216-a882-8895ced8bfa9","block_type":"box","text":"Terminology","page_number":233,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"4cedee3b-53c9-44c7-9fa3-9dc59665d0be","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":233,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"5bb0a4d1-2f99-49ee-a545-eef228828376","block_type":"box","text":"Climate risk:","page_number":233,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"2c9cae97-1033-4a5c-80e1-5baa403b85d7","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":233,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"62002ffa-164a-43f2-b7a8-acc92b15316d","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":233,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"ee6905d9-b120-4bae-974d-748ea1605931","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":233,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"3b5393c9-ed5b-4181-9e58-38d6bc4729a7","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":233,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"b4a625ae-8d0e-4bc8-a29b-19e4b1643a54","block_type":"box","text":"The global economic shift toward lower","page_number":233,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"9f11e60d-afe3-482c-9b10-c27656bbaa33","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":233,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"6cc66822-93a9-4fd5-9c0a-f5134bac45ca","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":233,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"ff5713d3-8623-4569-bb5e-d3cae6d6ffbe","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":233,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"3840d746-bc12-401d-b0cb-eb1cd77b5eae","block_type":"box","text":"Decarbonization:","page_number":233,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"dfff79f7-30cb-48f8-91af-e0041fc4f9b9","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":233,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"5b9a8b27-89aa-4ad3-b9df-72f92faf79ae","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":233,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"bf6923a2-b8f1-46ad-b792-7415b5dc405a","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":233,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"06325eaf-40f7-4931-a536-1e68ac84d463","block_type":"box","text":"e.g., methane.","page_number":233,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"c59c1f3a-046f-48ef-92ca-cce9627e8b01","block_type":"box","text":"Climate-related risks and opportunities:","page_number":233,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"5b7c43b1-de3b-477c-b9b4-bb289899c369","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":233,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"b5a37eb3-840a-4f17-ad25-a0bdbd6b3aa5","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":233,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"c50b8ef9-e200-45b3-babd-0ee5845c2f2c","block_type":"box","text":"to physical climate change.","page_number":233,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"f8988cc9-57a7-4698-879a-45a4ac93f463","block_type":"box","text":"Climate-related transition plan:","page_number":233,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"c87d93d0-3017-4d2c-8668-e8a425d6179e","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":233,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"2e954021-5ced-4721-a2bc-e64b66435836","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":233,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"aa2f4aef-1a5f-4475-bbf7-d70c06f40cc7","block_type":"box","text":"greenhouse gas emissions.”","page_number":233,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"33f9badc-b52d-4849-a937-0430968ca0e3","block_type":"box","text":"27","page_number":233,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"f2708fbc-42aa-4f0c-8697-19a53eabbe72","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":233,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"436c2fa3-252d-4a96-907e-2446649f2ae5","block_type":"box","text":"Targets that “","page_number":233,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"8ceaeb04-f9c5-4f22-afe7-db7b9ea89138","block_type":"box","text":"are in line with what the latest climate science","page_number":233,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"fc194adc-7511-4d52-82f6-4dd96d2fbdc1","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":233,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"1c112990-bd9e-4441-810d-ad3dbe7763f4","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":233,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"0fd1fe01-f71b-4684-b78b-f14efa257916","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":233,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"d55296bc-dad9-496d-979d-83923c89e8c6","block_type":"box","text":"with the Paris Agreement goals.”","page_number":233,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"7f479b1e-aac0-474e-b6b9-92531f6ad0fc","block_type":"box","text":"28","page_number":233,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"27fdf17c-290a-4a88-b0cf-adad6975901a","block_type":"box","text":"Scope 1:","page_number":233,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"39d6a9e3-34c5-48cb-9d63-14117da4a363","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":233,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"399550f5-080c-4368-b804-62593e58df7f","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":233,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"d549954a-4090-4946-a5e7-9159a44bb81c","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":233,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"738037d4-b2cf-4bf1-bc66-1319b8a060b5","block_type":"box","text":"29","page_number":233,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"9cf1ce6c-7fb5-4d7e-abd9-4a6b73259313","block_type":"box","text":"Scope 2","page_number":233,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"0dcfc4aa-756b-47b1-a647-1dc255159e2d","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":233,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"a3182d1c-ad20-4ba6-b393-7d5ede5233e0","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":233,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"812b93a1-1436-4ec8-a33a-8daced15168f","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":233,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"cc3c61b1-002c-4a4d-8f7d-38f3813d6728","block_type":"box","text":"30","page_number":233,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"1b85513e-a6f9-4a77-92cf-cd8ccf41baec","block_type":"box","text":"Scope 3:","page_number":233,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"384c8aea-3138-4a93-864d-c05d4d990466","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":233,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"0c6c7f16-af40-4a67-a7ca-fa5085461513","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":233,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"a6dc821b-ea6d-4a7a-9dad-a5b25148823b","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":233,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"bb629e8c-6d57-4c5b-9463-e1038a83d6cd","block_type":"box","text":"31","page_number":233,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"7032f4b6-c524-47b1-be79-d04afd2dc61a","block_type":"box","text":"27","page_number":233,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"dbfc1f95-eba2-41ca-ae50-eeb3b8b53609","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":233,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"38e9fc7c-43c1-4b6d-b065-1bc2d1777659","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":233,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"4e977495-78b3-4b39-8f79-522fd96d690e","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":233,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"c836bdf8-5a2b-4350-b15c-f917a1aa0e26","block_type":"box","text":"28","page_number":233,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"e36ffe2d-c621-4991-be7b-19aad3e9a55b","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":233,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"08274500-2a53-4831-bbfe-4bfdecce42c1","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":233,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"69dea97c-6478-4452-a135-c0f5b180908e","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":233,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"fdb1d827-1f59-4ce3-9878-7a273091c5cf","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":233,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"5a108eba-4610-4e4c-a6a1-b70f1695b147","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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