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I-24","page_number":16,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"a0ff71c1-2a1a-4dca-a593-c0a6d17984f9","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"5c732d3f-6f36-4f73-9063-2e8e96c18693","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"6a24f971-4eaf-4ad4-85fa-0ecc1f19e676","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"9d050b95-e804-4cfa-bdde-dea989b2f148","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":22,"box":{"x":101,"y":173,"width":802,"height":11}},{"id":"23dd63fe-01fa-4555-aef9-f62e015c8261","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mor tgage-related","page_number":22,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"7cee51da-2cea-4a0f-b6f3-e2576e45a65e","block_type":"box","text":"securities and securities of issuers engaged in the real estate business, and the Fund may purchase and hold real","page_number":22,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"64f78129-6553-48f5-9e7d-74f42d47322e","block_type":"box","text":"estate as a result of the ownership of securities or other instruments.","page_number":22,"box":{"x":69,"y":218,"width":497,"height":11}},{"id":"a4abf652-e59a-4789-a3e3-30b01aa81a23","block_type":"box","text":"5. Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the Fund","page_number":22,"box":{"x":102,"y":241,"width":785,"height":11}},{"id":"5800455b-90a7-4051-a5fd-e399b099249e","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":22,"box":{"x":69,"y":257,"width":588,"height":11}},{"id":"66762fe6-2844-4dfc-aca7-dc7a4a9f8d63","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":22,"box":{"x":102,"y":279,"width":787,"height":11}},{"id":"12075600-a55c-4b31-9fe9-6dcb5a1dec89","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":22,"box":{"x":102,"y":302,"width":506,"height":11}},{"id":"39b0ec7d-a0cd-47d8-9b98-b3fe29e84ef3","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":22,"box":{"x":101,"y":324,"width":730,"height":11}},{"id":"a84fb873-40ff-49f8-903d-498a6fbd43f2","block_type":"box","text":"Investment Company Act.","page_number":22,"box":{"x":70,"y":340,"width":178,"height":11}},{"id":"8bb621a9-4432-407a-90b7-da6b7662aa25","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":22,"box":{"x":102,"y":362,"width":511,"height":11}},{"id":"2f565b5b-531a-425d-8e30-84fd71b6eff1","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":22,"box":{"x":101,"y":385,"width":799,"height":11}},{"id":"3b7e38c5-5fd9-413b-baa2-62a63db7b0f2","block_type":"box","text":"subject to change without shareholder approval.","page_number":22,"box":{"x":69,"y":400,"width":341,"height":11}},{"id":"54f00a01-16ce-4c89-a9ec-a51f3d94e795","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":22,"box":{"x":101,"y":423,"width":796,"height":11}},{"id":"c9cb04cc-4bcf-41d6-b205-5f28c152deb9","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":22,"box":{"x":68,"y":438,"width":811,"height":11}},{"id":"4998e444-8d77-4047-b9cf-f7e4d9019bba","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":22,"box":{"x":68,"y":453,"width":833,"height":11}},{"id":"3dafcca0-a18e-4855-90f6-b7c09da742d3","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":22,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"c1e0fa53-dd09-41fd-89fe-1aea4d9a3cc3","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":22,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"0cf20eae-b6c2-4080-92f6-832978223ce4","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":22,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"11ef77b3-ea57-4346-a9c4-d30245585b0e","block_type":"box","text":"securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":22,"box":{"x":69,"y":513,"width":820,"height":12}},{"id":"18243cfc-8d4d-465f-bad6-d8c8f61d9a35","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":22,"box":{"x":69,"y":529,"width":809,"height":11}},{"id":"7e255774-f625-4aec-bb4e-0aa03ce03c83","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":22,"box":{"x":69,"y":543,"width":772,"height":12}},{"id":"732baeb6-0efa-4507-85f5-9c781604891b","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":22,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"91b8f2a6-840b-4db6-8aa9-b6fd1ffef8a2","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":22,"box":{"x":67,"y":574,"width":829,"height":11}},{"id":"e87a4b40-e1ec-4c54-81ba-47aa89acfb63","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":22,"box":{"x":69,"y":589,"width":805,"height":11}},{"id":"7939a900-e9e6-40eb-971d-dd23bae204cb","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":22,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"404ef476-462c-47fa-a94a-3aa6560ce8a2","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":22,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"a086c35c-3bd4-4732-ac09-84eec5b19fc5","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":22,"box":{"x":70,"y":634,"width":807,"height":12}},{"id":"92678d45-be91-46a5-bb6e-4136f067a499","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":70,"y":649,"width":438,"height":12}},{"id":"172a9306-1fef-49ef-9834-c582e2fc4530","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":22,"box":{"x":101,"y":672,"width":750,"height":11}},{"id":"82a4e2c5-cbcf-4381-bcac-5e06b7792e41","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks","page_number":22,"box":{"x":69,"y":687,"width":827,"height":11}},{"id":"526d0b71-af2d-438e-908e-1fbeaab8927e","block_type":"box","text":"for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary","page_number":22,"box":{"x":68,"y":702,"width":781,"height":11}},{"id":"b53c5fbd-73bb-4348-b784-9b1a5e0eea0c","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":22,"box":{"x":70,"y":718,"width":815,"height":11}},{"id":"9e6487e8-d68e-4741-85d2-ce7b43115280","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":22,"box":{"x":68,"y":732,"width":825,"height":12}},{"id":"76405994-44e7-4290-ae95-b60d329f4d05","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":22,"box":{"x":69,"y":748,"width":777,"height":11}},{"id":"dcdc330e-5f50-4161-9018-bad37d0d7924","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":22,"box":{"x":69,"y":763,"width":776,"height":11}},{"id":"31db3abf-3cbf-4092-819a-73ab76399f2e","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":22,"box":{"x":70,"y":778,"width":828,"height":11}},{"id":"1589752f-662d-4d2a-abe6-31f310cacf4e","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":22,"box":{"x":69,"y":793,"width":788,"height":11}},{"id":"12b4c920-37af-49cf-b366-67f64bf14f21","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":22,"box":{"x":69,"y":808,"width":813,"height":11}},{"id":"6e7b7b16-a13a-4320-acee-7e677ce5b1f4","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":22,"box":{"x":68,"y":823,"width":802,"height":12}},{"id":"eede6698-ab45-4e18-81f2-9c09140e60ca","block_type":"box","text":"either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the","page_number":22,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"98673b75-58eb-4953-b618-f85a64bec731","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":22,"box":{"x":69,"y":853,"width":807,"height":12}},{"id":"dfc130c2-5dc7-4b3c-a51e-20fe908ce551","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":22,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"afa7e045-7e7b-458c-926e-c56d09912003","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":22,"box":{"x":69,"y":884,"width":835,"height":11}},{"id":"d307ad51-8167-40e0-b106-137f19cdfbf8","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":22,"box":{"x":69,"y":899,"width":643,"height":11}},{"id":"6e60a659-ce37-484b-b816-564689b53e60","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"36832f07-00c2-4e17-bacf-661a7bf4c583","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90f809df-a5dd-4c90-ac0b-2782f2eed394","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":23,"box":{"x":101,"y":45,"width":788,"height":11}},{"id":"f9af0b8f-3abe-4cb9-8db7-23535a319b12","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":23,"box":{"x":68,"y":60,"width":840,"height":11}},{"id":"8b00548c-8696-4193-8b8f-ede9f3cf2d87","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting","page_number":23,"box":{"x":70,"y":75,"width":825,"height":11}},{"id":"bcb7638d-b8c8-4ad0-989e-348954718a5f","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":23,"box":{"x":69,"y":90,"width":811,"height":11}},{"id":"af750639-49f4-49c8-a30f-17eb0610f83d","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":23,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"0faa22be-6776-4ff2-ae2e-3e65bf5f5e07","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":23,"box":{"x":68,"y":120,"width":818,"height":12}},{"id":"8fb2df64-916f-42f7-b5ce-b221d9c94262","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":23,"box":{"x":69,"y":135,"width":833,"height":12}},{"id":"458c082b-96dc-45e1-9073-e89ae640fc26","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":23,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"1700bd2c-5abf-4d7e-af52-698b08dfce85","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":23,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"e85d5e8b-1932-4c65-9af0-5b46414ac551","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":23,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"8a4c52d0-6ea6-4409-8b21-933b9741d5fd","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":23,"box":{"x":68,"y":196,"width":811,"height":11}},{"id":"43091a35-52db-4306-a90c-6edf4435db2d","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":23,"box":{"x":69,"y":211,"width":834,"height":11}},{"id":"368d5dce-5305-4e23-b003-c218d73bdf8b","block_type":"box","text":"extent permitted by applicable law.","page_number":23,"box":{"x":69,"y":226,"width":245,"height":11}},{"id":"753e9cdc-0dd3-4ad2-95b3-8eaad5059cce","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":23,"box":{"x":101,"y":249,"width":778,"height":11}},{"id":"e4d87938-3a44-4d97-9255-2d41c4d907d9","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":23,"box":{"x":69,"y":264,"width":756,"height":11}},{"id":"2312f0c8-47fd-4e7c-9b4a-654c58241573","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":23,"box":{"x":70,"y":279,"width":807,"height":11}},{"id":"2e9e30b4-cf5b-46d5-a677-1ebf7810ce10","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":23,"box":{"x":69,"y":294,"width":784,"height":11}},{"id":"bf5d815e-e2ea-4634-96b4-a0ad758296b4","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":23,"box":{"x":69,"y":309,"width":791,"height":11}},{"id":"0cb9361e-cf30-4d66-8079-07cff7fba9e3","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":23,"box":{"x":70,"y":324,"width":803,"height":11}},{"id":"144e5b6b-4fa7-4b13-a9bc-4e0639f85ae7","block_type":"box","text":"loans.","page_number":23,"box":{"x":70,"y":340,"width":40,"height":8}},{"id":"5cabca51-c406-436a-bebf-b0c81a4cce4a","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":23,"box":{"x":101,"y":362,"width":777,"height":11}},{"id":"90cc6b63-5d72-4229-ab1c-6b5522bfeef6","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":23,"box":{"x":70,"y":377,"width":751,"height":12}},{"id":"1abc3bb9-b670-4e45-8216-c2b36e645ed4","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":23,"box":{"x":68,"y":392,"width":812,"height":12}},{"id":"78d511d6-a19b-423a-a791-c285dcbfebae","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":23,"box":{"x":69,"y":407,"width":827,"height":11}},{"id":"ae23d173-6e0e-48a1-b190-1cc7167ac6d0","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":23,"box":{"x":69,"y":423,"width":781,"height":11}},{"id":"024c3475-f995-4536-ba24-2e960babb76b","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":23,"box":{"x":69,"y":438,"width":759,"height":11}},{"id":"e7be9dc6-ca19-438b-b6f3-51a253f6f197","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":23,"box":{"x":70,"y":453,"width":774,"height":11}},{"id":"09b3bb2e-2ae6-421f-9057-ac170e492f31","block_type":"box","text":"shareholder approval.","page_number":23,"box":{"x":69,"y":468,"width":153,"height":11}},{"id":"a0bffbbe-9e6c-48a8-a8c7-21b1683167fa","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":23,"box":{"x":102,"y":491,"width":768,"height":11}},{"id":"bfb7a442-0271-43bd-89c7-6265387a2345","block_type":"box","text":"approval, the Fund may not:","page_number":23,"box":{"x":69,"y":506,"width":197,"height":11}},{"id":"c3ff5676-5b76-452f-a1aa-55baded8604a","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":23,"box":{"x":102,"y":528,"width":742,"height":12}},{"id":"86aa23a0-8bef-429d-8922-9ccafe27ccd8","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":23,"box":{"x":69,"y":543,"width":759,"height":12}},{"id":"538823ed-91eb-446c-a03b-53aea7341ba1","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":23,"box":{"x":70,"y":559,"width":829,"height":11}},{"id":"3cb7094d-4ff0-41ab-8023-6442180f7b62","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":23,"box":{"x":70,"y":574,"width":808,"height":11}},{"id":"f86f6907-1757-46ea-b8f5-b8341f237c74","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":23,"box":{"x":69,"y":589,"width":763,"height":11}},{"id":"b3a2da5b-14bc-484c-b8fa-2559837fb1d7","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":23,"box":{"x":102,"y":612,"width":765,"height":11}},{"id":"5a523581-1c75-43f6-a014-94819929fc8a","block_type":"box","text":"Prospectuses and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":23,"box":{"x":69,"y":627,"width":758,"height":11}},{"id":"570d1805-b1a1-41e8-9ae6-d15a8361f89f","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":23,"box":{"x":102,"y":649,"width":771,"height":11}},{"id":"5cde45a5-8960-4585-9d63-8640dd5d9ddb","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":23,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"376c5535-3fd4-449e-9ef0-5ffbe9aa3905","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":23,"box":{"x":68,"y":680,"width":803,"height":11}},{"id":"130a5d1f-74e0-47f1-8f4a-25691866b4d2","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":23,"box":{"x":69,"y":695,"width":835,"height":11}},{"id":"974ab13f-5051-4faf-8b6c-b11a74cf9cb0","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":23,"box":{"x":69,"y":710,"width":833,"height":11}},{"id":"a5bf9530-3ce3-44a2-9212-4dd92a91d45b","block_type":"box","text":"investment without undue market or tax consequences.","page_number":23,"box":{"x":70,"y":725,"width":393,"height":11}},{"id":"40ce0211-e3f3-4a2c-bb89-58a61b0142f1","block_type":"box","text":"III. Information on Directors and Officers","page_number":23,"box":{"x":69,"y":755,"width":294,"height":9}},{"id":"52817eb0-89b1-47f5-80e6-e8eec2b2812f","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thir teen of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":778,"width":790,"height":11}},{"id":"805ab1b8-92ef-47b1-b354-8b3d0bd79f4d","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":23,"box":{"x":68,"y":793,"width":780,"height":11}},{"id":"b3028de6-18e9-4aff-b858-bc7bd57b6bb2","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":808,"width":837,"height":11}},{"id":"b29a1c60-612c-4af4-b852-0022f3148a6a","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":823,"width":793,"height":11}},{"id":"f3768627-72e0-4b87-a88b-c267eebbff38","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":838,"width":820,"height":11}},{"id":"b9e94c03-9ebd-46c6-8111-041490a89412","block_type":"box","text":"The Directors also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":853,"width":839,"height":12}},{"id":"96271aa8-57ba-4c8c-973b-a1820c09e867","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":869,"width":335,"height":11}},{"id":"cc40bbc5-424a-4140-b386-f03cead0881d","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":23,"box":{"x":101,"y":891,"width":764,"height":12}},{"id":"c51384d4-29e3-499c-a268-bb587290df6d","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":23,"box":{"x":70,"y":906,"width":815,"height":11}},{"id":"9b66d65c-dbf3-46b5-9d1e-d1db2f757536","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"8c203f13-d9b3-438a-a150-75e6a9bc6dce","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"faffe6df-fffb-47f1-8f95-8b4f7a3af82f","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":24,"box":{"x":68,"y":45,"width":832,"height":11}},{"id":"c97329fd-a814-4c82-b9aa-775e1ead5aa4","block_type":"box","text":"a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":24,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"ceb8d963-c014-4053-a37a-3e3b32ae3381","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":24,"box":{"x":70,"y":75,"width":793,"height":11}},{"id":"2b6fcf82-6fe7-47ac-a808-9b7f974eae4f","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":24,"box":{"x":70,"y":90,"width":790,"height":11}},{"id":"c6949185-1015-40a9-a3d0-ca29e062fd41","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":24,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"7c05c433-ebc3-4c46-a0cd-4ac2944e9cf7","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":24,"box":{"x":69,"y":120,"width":811,"height":12}},{"id":"6d1dff31-0158-4a40-b7b2-2db8ff66b12b","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":24,"box":{"x":70,"y":135,"width":794,"height":12}},{"id":"bc51ac8a-5cec-4527-aa4d-1db11978396b","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":24,"box":{"x":69,"y":150,"width":816,"height":12}},{"id":"bab227e5-a807-47c5-9265-d1e7e01b83f7","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":24,"box":{"x":69,"y":166,"width":831,"height":11}},{"id":"73026e03-a87f-4848-82f8-5ac0bef80197","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":24,"box":{"x":70,"y":181,"width":811,"height":11}},{"id":"34706d45-d285-46c7-8a50-a96544b3574c","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":24,"box":{"x":68,"y":196,"width":809,"height":11}},{"id":"c1e5653c-103a-48d4-af8c-c422fb502693","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":24,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"b5dac364-a612-4c64-b2e5-43c79614652a","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":24,"box":{"x":69,"y":226,"width":441,"height":11}},{"id":"789fe2b2-1a29-418d-96ec-6ecde2001889","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":24,"box":{"x":101,"y":249,"width":777,"height":11}},{"id":"b8e549fa-4321-4de3-8fc9-fee9249a43da","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":24,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"05aa7560-64ab-430a-bf3a-e11b1a15ac80","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s char ter, and the Fund’s","page_number":24,"box":{"x":68,"y":279,"width":819,"height":11}},{"id":"a539bb6e-b6e0-4a07-a414-5ebf19ecb622","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":24,"box":{"x":70,"y":294,"width":812,"height":11}},{"id":"4513fd8e-01ec-498e-a9b0-e8e6e3fc950e","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":24,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"6c5d7566-2215-416e-9815-184fc1fcb79e","block_type":"box","text":"the operations of the Fund.","page_number":24,"box":{"x":68,"y":324,"width":192,"height":11}},{"id":"6318496b-b2f7-43de-822f-85f5d326c58f","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":24,"box":{"x":102,"y":347,"width":785,"height":11}},{"id":"29cb637d-ce95-40ab-96e4-f3530fb3c65d","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":24,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"391122b6-340d-4bcb-b1e7-681b27f91677","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":24,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"9797fee2-26d3-4bac-99b6-b69617295475","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":24,"box":{"x":68,"y":392,"width":820,"height":12}},{"id":"7f923e34-aa5c-4daf-a765-0e61874fd5b7","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":24,"box":{"x":70,"y":407,"width":811,"height":12}},{"id":"02b0e026-ed50-413c-a0a2-caf33640e591","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":24,"box":{"x":70,"y":423,"width":767,"height":11}},{"id":"4c5ad655-7a9c-4ade-acff-7969b637b184","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":24,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"ad923279-dcf6-4031-8785-dedcea692963","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":24,"box":{"x":70,"y":453,"width":803,"height":11}},{"id":"28673bfb-3fab-43aa-ab47-52615016ed1a","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":24,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"f5828739-97d8-4362-a188-9ce21720e8ae","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":24,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"6639e2d5-3f02-48e2-934d-a4723df45fb8","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":24,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"0b37b26e-65e6-48aa-ad67-059dfc64613c","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":24,"box":{"x":69,"y":513,"width":812,"height":11}},{"id":"823180c9-2397-4b7d-b259-21b7d91a4067","block_type":"box","text":"testing of the Fund’s compliance program and repor ts to the Board regarding compliance matters for the Fund and its","page_number":24,"box":{"x":68,"y":528,"width":840,"height":12}},{"id":"10792f73-de4d-427b-9a52-a2be7475d119","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in per forming","page_number":24,"box":{"x":69,"y":543,"width":824,"height":12}},{"id":"f3e74215-34a1-4fe3-b6bf-30c166979b4c","block_type":"box","text":"their oversight responsibilities.","page_number":24,"box":{"x":68,"y":559,"width":218,"height":11}},{"id":"ffc96424-801e-4898-95e7-dafef0af0d91","block_type":"box","text":"Audit Committee.","page_number":24,"box":{"x":101,"y":581,"width":122,"height":9}},{"id":"df3fa79a-0dd6-4428-99d8-43db908cf688","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":24,"box":{"x":229,"y":581,"width":673,"height":11}},{"id":"ece09008-793d-48d6-928a-6b3e410650d3","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":24,"box":{"x":68,"y":596,"width":834,"height":12}},{"id":"df3524a8-d45b-4e22-add6-17a157bd800b","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":24,"box":{"x":68,"y":612,"width":820,"height":11}},{"id":"9a2fce81-44ad-4ea9-bbae-9f029670eb0c","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":24,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"fa9037fa-91bf-4e86-a468-a543f02b9bc9","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"d20456a7-f797-4b9b-bee0-d77fd08450a9","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":24,"box":{"x":70,"y":657,"width":825,"height":11}},{"id":"a71681f4-901c-450e-95e9-1d5ed5f5cff8","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":24,"box":{"x":70,"y":672,"width":807,"height":11}},{"id":"63a44bda-cd83-4046-9300-6bed5a846d94","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":24,"box":{"x":68,"y":687,"width":781,"height":11}},{"id":"83fa27cf-e937-44d7-9e88-3b500bcc5e20","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":24,"box":{"x":69,"y":703,"width":834,"height":11}},{"id":"f8c7c170-3c99-45ed-89f6-c44104d6329a","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":24,"box":{"x":69,"y":717,"width":838,"height":12}},{"id":"afbcd6ba-499a-445e-8713-f9665dbc9a14","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":732,"width":825,"height":12}},{"id":"23feb864-2f00-43b7-9a5d-c0ba5dd6c3d7","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":748,"width":809,"height":11}},{"id":"013b7b75-2abd-430a-91ed-c9bb33e2c7c0","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":763,"width":815,"height":11}},{"id":"c1082f81-ceca-48a8-bd37-bd745dd9c688","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":24,"box":{"x":69,"y":778,"width":774,"height":11}},{"id":"63cf4f10-730b-4c88-ad96-e1bbabe0242b","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":793,"width":815,"height":11}},{"id":"8ab5dd23-256d-4577-b571-39885c81d13a","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"9848abd9-bdb3-4584-b945-5886eedc2bea","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":24,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"98746c69-7695-445a-afde-780d6476f7df","block_type":"box","text":"During the fiscal year ended March 31, 2026, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":838,"width":589,"height":12}},{"id":"0dd2a2f8-020a-4def-b97d-c9fcae9e53b2","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":861,"width":286,"height":11}},{"id":"635cea2e-f425-4287-95f0-b928717208d8","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":861,"width":464,"height":11}},{"id":"5f0b3fb3-bdb5-4561-894d-064eecf16142","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":24,"box":{"x":70,"y":876,"width":838,"height":11}},{"id":"9ed5c79c-500b-4ed0-a01a-029736c7d495","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":24,"box":{"x":70,"y":891,"width":786,"height":11}},{"id":"9ff81768-348e-4be1-b2b3-585ac5422be0","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and","page_number":24,"box":{"x":69,"y":906,"width":804,"height":12}},{"id":"c3b04e6b-6951-4e29-9d61-daf8f99675e3","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"052adbc1-5f46-47be-b7e6-c12eed7844e0","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e91808ba-ba8d-4a68-b742-38ace75c3207","block_type":"box","text":"recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":25,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"ccfb697a-bdfe-457b-a25b-6a610fbcf990","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":25,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"a794349f-3ff3-46b2-b5ab-89c47047ee3c","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":25,"box":{"x":70,"y":75,"width":809,"height":11}},{"id":"9a0aa395-71f4-47b9-a3df-ee8f9fb64212","block_type":"box","text":"and make recommendations regarding Independent Director compensation; (5) monitor corporate governance","page_number":25,"box":{"x":69,"y":90,"width":780,"height":11}},{"id":"e304c015-4d01-4370-83af-f9fd76aa7fd8","block_type":"box","text":"matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with","page_number":25,"box":{"x":69,"y":105,"width":782,"height":11}},{"id":"545c0d95-13b9-4b5b-ab0d-7e1cd81db077","block_type":"box","text":"respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and","page_number":25,"box":{"x":69,"y":120,"width":824,"height":11}},{"id":"23f5c603-40d5-4abf-96aa-1e6a543ab18a","block_type":"box","text":"codes of ethics as they relate to Independent Directors; and (7) under take such other duties and responsibilities as","page_number":25,"box":{"x":69,"y":135,"width":827,"height":11}},{"id":"d3dd839d-c4ab-4a9e-8a25-876b9e2e0d09","block_type":"box","text":"may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":25,"box":{"x":69,"y":150,"width":809,"height":12}},{"id":"234880a2-ce38-4de6-9eef-b82ef9b7091b","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s","page_number":25,"box":{"x":69,"y":166,"width":796,"height":11}},{"id":"4a0ed466-b81a-453a-84dc-3038733e34e0","block_type":"box","text":"Amended and Restated Bylaws, shareholders must follow cer tain procedures to nominate a person for election as a","page_number":25,"box":{"x":68,"y":181,"width":828,"height":11}},{"id":"edda45a7-ea70-445c-ad47-08e7acfd2efe","block_type":"box","text":"Director at a shareholder meeting at which Directors are to be elected. Under these advance notice procedures,","page_number":25,"box":{"x":70,"y":196,"width":795,"height":11}},{"id":"a04b4a09-7f66-422a-9623-97fd9000e3d4","block_type":"box","text":"notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and received at the","page_number":25,"box":{"x":69,"y":211,"width":798,"height":11}},{"id":"6785fe0c-e0e0-4257-aff4-c2903539dfe5","block_type":"box","text":"principal executive offices of the Fund not later than the close of business on the fifth day following the day on which","page_number":25,"box":{"x":70,"y":226,"width":831,"height":11}},{"id":"6e0270b0-0610-4d67-b4bf-35e370a517a6","block_type":"box","text":"notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever","page_number":25,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"0d8b644d-e788-473a-8da5-7779d7724109","block_type":"box","text":"first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include cer tain information about","page_number":25,"box":{"x":68,"y":256,"width":830,"height":11}},{"id":"3c912789-2c95-4993-ae47-669e54a495cd","block_type":"box","text":"the shareholder and the nominee, as well as cer tain other information, including a written consent of the proposed","page_number":25,"box":{"x":68,"y":271,"width":820,"height":12}},{"id":"0e65f28d-98ab-45ef-bf9e-0234cdbf02ae","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board has adopted a","page_number":25,"box":{"x":69,"y":286,"width":799,"height":12}},{"id":"56ae0a6c-dc0a-4aa2-bc69-8216393c6302","block_type":"box","text":"written char ter for the Governance Committee. During the fiscal year ended March 31, 2026, the Governance","page_number":25,"box":{"x":68,"y":302,"width":780,"height":11}},{"id":"865f75b6-b644-47f0-9591-0b4aa86ad2fa","block_type":"box","text":"Committee met eleven times.","page_number":25,"box":{"x":69,"y":317,"width":208,"height":9}},{"id":"170b7890-3c55-4732-b77f-88804dac4857","block_type":"box","text":"Compliance Committee.","page_number":25,"box":{"x":102,"y":340,"width":168,"height":10}},{"id":"0bb08563-79c0-40bb-854b-20ea7533722b","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":25,"box":{"x":276,"y":339,"width":629,"height":11}},{"id":"9c00ea39-dea6-4403-8009-d7d743f2badb","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":25,"box":{"x":68,"y":355,"width":828,"height":11}},{"id":"f2d97539-2aa2-4730-9d11-9f7228058a3e","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":25,"box":{"x":68,"y":370,"width":773,"height":11}},{"id":"86f4e323-a7f7-4f31-9f75-79b84ee68515","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":25,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"cc504577-7f9f-469e-a263-d14f17cb31e3","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-par ty service providers. The Compliance Committee’s","page_number":25,"box":{"x":70,"y":400,"width":753,"height":11}},{"id":"d6fa4368-f851-4fb4-a554-277dadcfd444","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":25,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"275c0bad-9da0-4318-b6bd-eb8709121e89","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":25,"box":{"x":69,"y":430,"width":815,"height":11}},{"id":"425d641d-353f-4496-b1c9-53a47e4dcb1e","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":25,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"dfb77f47-3814-4fa4-a67f-836fdcbeed88","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":25,"box":{"x":69,"y":460,"width":811,"height":11}},{"id":"033600e1-c3d1-4049-8e85-7b50af0063e3","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":25,"box":{"x":69,"y":475,"width":811,"height":12}},{"id":"499534f7-47f5-4c5b-b049-95f1896c4728","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":25,"box":{"x":69,"y":491,"width":812,"height":11}},{"id":"f242b9e6-734a-4172-b844-67d890f585e9","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":25,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"d700cc3c-dd31-4cff-8421-4c5a96278761","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":25,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"d5058a4c-0623-49fa-9580-ac3f147013b2","block_type":"box","text":"year ended March 31, 2026, the Compliance Committee met four times.","page_number":25,"box":{"x":68,"y":536,"width":518,"height":11}},{"id":"4239f48f-f275-4554-be40-8ea8b89f2413","block_type":"box","text":"Per formance Oversight Committee.","page_number":25,"box":{"x":102,"y":559,"width":248,"height":11}},{"id":"0bb07d8e-dcce-4d38-947e-cf2b1c50ca32","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":25,"box":{"x":356,"y":559,"width":531,"height":11}},{"id":"7acd5852-a9f8-4f8b-8d6c-2a99588124da","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":25,"box":{"x":69,"y":574,"width":829,"height":11}},{"id":"a281ce94-d4b5-4b4a-89af-7869ee0903df","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Per formance Oversight Committee’s purpose is","page_number":25,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"abe8e6d0-1309-450b-9476-3afd9e2acf1a","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":25,"box":{"x":68,"y":604,"width":832,"height":11}},{"id":"ea96eac4-3aed-4b71-a2db-019d786e5dff","block_type":"box","text":"upon per formance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":25,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"4897aecf-0ce5-474b-9c94-9d712a8d2863","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":25,"box":{"x":69,"y":634,"width":782,"height":12}},{"id":"6493e78f-5888-48fa-b592-1657a69a95a5","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":25,"box":{"x":70,"y":649,"width":829,"height":11}},{"id":"4195027c-19b6-485a-8871-ed6a2cf0e59d","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":25,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"d59cbdc9-b31e-4822-9bca-34c18e319ab5","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":25,"box":{"x":69,"y":680,"width":803,"height":11}},{"id":"e6130684-1416-4fd1-bd91-a54a8ac3f786","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":25,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"423bca61-7736-4264-88d2-91a26e61c798","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":25,"box":{"x":68,"y":710,"width":811,"height":11}},{"id":"7902eff5-3c68-4547-81e2-04c72d5f4c24","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":25,"box":{"x":69,"y":725,"width":757,"height":11}},{"id":"ba84e1b9-2914-4f43-8c79-41d96518458e","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":25,"box":{"x":70,"y":740,"width":835,"height":11}},{"id":"26c9e1f1-58b5-43c6-a8c8-fa302326a226","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":25,"box":{"x":68,"y":755,"width":800,"height":11}},{"id":"fdd781af-342f-4778-bea3-b975417e31c7","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":25,"box":{"x":69,"y":770,"width":780,"height":12}},{"id":"11d47db2-e598-4da4-8c09-9c49b366675d","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":785,"width":838,"height":12}},{"id":"17f6144e-a97a-4dd7-88ba-5b0fa4b0891c","block_type":"box","text":"ended March 31, 2026, the Per formance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":801,"width":559,"height":11}},{"id":"3beca3b2-e065-4600-be66-9e93b1bf76ac","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":823,"width":186,"height":11}},{"id":"f340cac8-5302-4d6c-9a28-29ae6bd54964","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":823,"width":598,"height":11}},{"id":"e61d4f12-2a0f-4e58-b935-13ae81249595","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":838,"width":819,"height":11}},{"id":"5c02656c-ad3a-4b00-bf77-01bc07d82039","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":853,"width":796,"height":11}},{"id":"0c671846-a84c-4cc4-af83-aec61c054a9e","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":869,"width":788,"height":11}},{"id":"3b250d1e-e68d-492a-adfa-2f5c29494152","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":25,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"737f654c-6a76-4501-bc27-d0f6df2c74c2","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"fb4d00f3-f38a-42f4-914f-bc3501546f0e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f6da494-f624-4b92-8c9a-04a786bfc0ea","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":26,"box":{"x":68,"y":45,"width":816,"height":11}},{"id":"c3e2fa35-f31f-4d21-a9f2-180a1c4d7a2f","block_type":"box","text":"the fiscal year ended March 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":26,"box":{"x":68,"y":60,"width":590,"height":11}},{"id":"af702bb6-ab4e-4ef9-9da9-9d139e063462","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":26,"box":{"x":101,"y":82,"width":771,"height":12}},{"id":"3a1b1341-620d-4a40-8b23-acfc08fda6bf","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":26,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"e987228f-ed1a-4aa1-9d48-52431bfec141","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":26,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"01988416-2c46-49f3-8e16-bf92ea225551","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":26,"box":{"x":69,"y":128,"width":827,"height":11}},{"id":"01ace11f-5759-4543-ab7e-69aea254b5be","block_type":"box","text":"in determining that a par ticular Independent Director was and continues to be qualified to serve as a Director, the","page_number":26,"box":{"x":70,"y":143,"width":811,"height":11}},{"id":"8b882828-396c-4adf-af4a-14aec3ed4a06","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":26,"box":{"x":70,"y":158,"width":787,"height":11}},{"id":"ec86c7e5-bfdf-4f5a-ab37-81b13fceee97","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":26,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"51f38c33-1b67-4a32-959f-04e044d6c641","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":26,"box":{"x":68,"y":188,"width":792,"height":12}},{"id":"3ea7b8ec-474d-4539-9ce4-f9b176734490","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":26,"box":{"x":68,"y":204,"width":832,"height":11}},{"id":"68de2bb8-de5b-471c-bb26-74c83195d5d1","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":26,"box":{"x":69,"y":218,"width":823,"height":12}},{"id":"836e13cf-991d-49c6-8d10-ee032c71fe9c","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":26,"box":{"x":69,"y":234,"width":771,"height":11}},{"id":"07d2f467-905b-424f-893b-d6264b52a510","block_type":"box","text":"business judgment in the per formance of their duties as Directors.","page_number":26,"box":{"x":69,"y":249,"width":475,"height":11}},{"id":"6d41b0fa-1d5a-4210-8c4d-162471b61417","block_type":"box","text":"Each Director’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":26,"box":{"x":102,"y":271,"width":794,"height":12}},{"id":"b594d824-7b00-409a-ae03-0d68c108f877","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":26,"box":{"x":69,"y":286,"width":807,"height":12}},{"id":"6a28e278-1ac7-4959-95ff-af2ed71c6f6e","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":26,"box":{"x":69,"y":302,"width":835,"height":11}},{"id":"044cf3fb-5f99-4b86-bbce-cc0e7e6c8a69","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":26,"box":{"x":70,"y":317,"width":759,"height":11}},{"id":"88e767ad-a7da-4f75-9a85-a0a19399d9e8","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":26,"box":{"x":70,"y":332,"width":685,"height":11}},{"id":"b853a067-a84b-45fc-a32a-4ca94af0d0ec","block_type":"box","text":"ad hoc","page_number":26,"box":{"x":762,"y":332,"width":47,"height":9}},{"id":"a9e450a8-856b-4ecc-91d6-428953f2dad3","block_type":"box","text":"committees","page_number":26,"box":{"x":814,"y":332,"width":82,"height":9}},{"id":"28f65f95-918e-4f0c-8b94-92acf9a2059f","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":26,"box":{"x":68,"y":347,"width":395,"height":11}},{"id":"91f2eb55-aba7-46f6-b19c-22f13c5422d2","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":26,"box":{"x":101,"y":370,"width":754,"height":11}},{"id":"c3542f2c-26bc-4e34-bfe9-7beddce35c66","block_type":"box","text":"suppor t the conclusion that each Director should serve on the Board.","page_number":26,"box":{"x":69,"y":385,"width":494,"height":11}},{"id":"a67013a6-1aa4-4793-9d2e-87fc46c67292","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":26,"box":{"x":69,"y":413,"width":408,"height":9}},{"id":"3e9db112-72d5-4a41-9577-854504044222","block_type":"box","text":"Independent Directors","page_number":26,"box":{"x":70,"y":430,"width":156,"height":10}},{"id":"752414bd-85a9-4513-ae7c-bfb393594864","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":26,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"618e15f5-00e4-4513-ad32-2bb2bddb2e4e","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":26,"box":{"x":265,"y":460,"width":604,"height":11}},{"id":"d9cf4e06-25b0-4bae-a223-7784c7f28b08","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":26,"box":{"x":265,"y":475,"width":623,"height":11}},{"id":"ec663c57-1e50-404c-84d7-c70f7ef641fb","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":26,"box":{"x":265,"y":490,"width":637,"height":11}},{"id":"4f74186f-92f4-4103-a110-05a3410fc21d","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":26,"box":{"x":265,"y":505,"width":631,"height":11}},{"id":"9bb402db-fe0f-44ed-8691-b2eb63adec30","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":26,"box":{"x":264,"y":520,"width":626,"height":11}},{"id":"c24a3634-c45e-4763-86cd-b7ff9ea4cd1c","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":26,"box":{"x":265,"y":535,"width":639,"height":11}},{"id":"1a9e7d04-7a5e-49c8-9e56-5aa8ec7f8215","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":26,"box":{"x":264,"y":551,"width":637,"height":11}},{"id":"e3ffee12-0197-4327-9eba-622efc007fd7","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":26,"box":{"x":265,"y":566,"width":586,"height":11}},{"id":"5c0a24a6-0162-40c3-ac3e-2f57d46323d7","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":26,"box":{"x":265,"y":581,"width":640,"height":11}},{"id":"1d423c45-9e5b-4ce7-8b98-45f8cf736542","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":26,"box":{"x":265,"y":596,"width":389,"height":11}},{"id":"f8324e49-1bbd-4a4c-9f38-906a18c4f6be","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":618,"width":806,"height":12}},{"id":"ecf257d6-0e04-47dd-8cc4-61f89ca8290b","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":634,"width":604,"height":11}},{"id":"8a9bd732-805c-40ef-97c9-01a7e688dadf","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":649,"width":632,"height":11}},{"id":"877d658f-a2c6-4d76-bf49-d2862515621f","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":26,"box":{"x":265,"y":664,"width":562,"height":9}},{"id":"76cd7287-d282-4493-97fe-66640e60c148","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":679,"width":616,"height":10}},{"id":"d9bfb8d4-9d84-4e19-bc2c-d45b0706a2c1","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":694,"width":591,"height":11}},{"id":"7a369f9e-a6e0-4a3a-be5d-886db817df19","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":26,"box":{"x":265,"y":709,"width":641,"height":11}},{"id":"a909c259-84d2-4701-9b57-612e2e7b4f7a","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":26,"box":{"x":264,"y":724,"width":638,"height":12}},{"id":"4d61ba91-9d55-44ec-87f1-3cb1e30a73c2","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":26,"box":{"x":265,"y":739,"width":584,"height":12}},{"id":"4aebd4ef-a31e-4dff-88fc-b076d1213923","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":755,"width":630,"height":11}},{"id":"b9456031-9425-48ab-96fc-4114cc7ce6ae","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":770,"width":634,"height":11}},{"id":"1c27634e-1a28-41ea-b8b2-b72e64138c04","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":785,"width":599,"height":11}},{"id":"609925ed-853b-4dcb-ae8a-9d97fc787d26","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":800,"width":407,"height":11}},{"id":"97cfa828-00e4-46f1-a23e-2a1b02c497e1","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":26,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"3fb51b6c-96aa-4537-83b5-32c564de6b31","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":26,"box":{"x":265,"y":838,"width":638,"height":11}},{"id":"abe69d25-262c-4d15-a7ec-5034618c1116","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":26,"box":{"x":265,"y":853,"width":642,"height":11}},{"id":"43daaec1-c494-420e-b7fc-24a80ba6779d","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":867,"width":601,"height":12}},{"id":"f5bde59b-ccd7-4d20-9c7b-cdb0e6e7bffa","block_type":"box","text":"savings assets for the company. 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Cotty has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":65,"width":798,"height":12}},{"id":"e87f85c6-4d80-44b0-a678-9002c2bde29f","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":27,"box":{"x":265,"y":81,"width":631,"height":11}},{"id":"fa192f9a-d992-4b19-8eb1-5db0e3b05499","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":27,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"faff3200-752d-4f6b-aee2-d4c024a651f3","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":27,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"eb214c19-7d8e-490d-83ec-0da00cda1bd8","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":27,"box":{"x":265,"y":126,"width":596,"height":11}},{"id":"1bef61b9-1432-4782-b2a6-ce0feed62a1e","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":27,"box":{"x":265,"y":141,"width":616,"height":11}},{"id":"e45972bb-6e43-4aa5-99e4-dfa7d2113bae","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":27,"box":{"x":264,"y":156,"width":368,"height":11}},{"id":"316be1e6-d631-4eab-afe5-8afe12708b31","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":27,"box":{"x":69,"y":179,"width":777,"height":11}},{"id":"9c72a9f6-ce75-401b-b2f0-00702d2df41f","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":27,"box":{"x":265,"y":194,"width":613,"height":11}},{"id":"a59573a4-160e-486c-a91f-22c0d5755544","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":27,"box":{"x":265,"y":209,"width":563,"height":11}},{"id":"f27fdae2-9bb1-43bc-86a3-4313612023a7","block_type":"box","text":"Investments’ parent company, FMR LLC. 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These positions have","page_number":27,"box":{"x":265,"y":239,"width":638,"height":11}},{"id":"464d5ebb-182d-46c8-950f-2c61800b4353","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":27,"box":{"x":265,"y":255,"width":626,"height":11}},{"id":"fbdec703-f671-4459-9c13-60f950b81112","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":27,"box":{"x":265,"y":269,"width":563,"height":12}},{"id":"51391957-9474-4c3e-9c77-44480e1d851d","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":27,"box":{"x":265,"y":285,"width":627,"height":11}},{"id":"8b3de4d2-0f24-4f42-8f9d-53382ea3f307","block_type":"box","text":"Independent Director.","page_number":27,"box":{"x":265,"y":300,"width":151,"height":11}},{"id":"1366192d-6112-426b-a894-b43d81b3bbfa","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":27,"box":{"x":70,"y":322,"width":806,"height":12}},{"id":"6995e598-8821-4c5e-8529-2fd48da0f5ed","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":27,"box":{"x":264,"y":338,"width":584,"height":11}},{"id":"6cbc117b-231c-4dbf-af5b-145e852d7005","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":27,"box":{"x":265,"y":353,"width":622,"height":11}},{"id":"06fd4c77-ce0e-43e4-9c4a-cdf91f5850ab","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":27,"box":{"x":265,"y":368,"width":638,"height":11}},{"id":"f283b18e-029b-4c61-bd2f-090dd8d3b1f9","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":27,"box":{"x":265,"y":383,"width":570,"height":11}},{"id":"c550d12e-89af-4fa8-acaa-f3105bb2a003","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":27,"box":{"x":265,"y":398,"width":642,"height":11}},{"id":"0a6983e0-d6ba-4b1f-aeec-7c212516d043","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":27,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"9022dda9-8bcc-4728-aa4a-fdb072492fdf","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":27,"box":{"x":265,"y":428,"width":630,"height":12}},{"id":"0564d468-2d8c-4b13-9931-2345615e2926","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":27,"box":{"x":265,"y":443,"width":602,"height":12}},{"id":"646e52b4-e3b1-4a50-a470-746e0de7b249","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":27,"box":{"x":264,"y":458,"width":643,"height":12}},{"id":"a92bcf36-4c09-49fe-9e98-ffe91741289e","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":27,"box":{"x":264,"y":474,"width":639,"height":11}},{"id":"d2acba33-6185-4221-b0bb-48bb31aaca11","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":27,"box":{"x":264,"y":489,"width":641,"height":11}},{"id":"fc35fd25-93c5-421c-8089-bbb7c6c4982a","block_type":"box","text":"applicable Commission rules.","page_number":27,"box":{"x":265,"y":504,"width":208,"height":11}},{"id":"4986faf8-9069-463e-89b4-2a99348866ab","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":27,"box":{"x":69,"y":526,"width":769,"height":12}},{"id":"82bc49a6-aa8d-40d0-b5c6-1915058f6007","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":27,"box":{"x":265,"y":542,"width":621,"height":11}},{"id":"fb4c007a-fe22-49a4-9321-21131d0fe544","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":557,"width":599,"height":11}},{"id":"30140d80-74da-425c-b2b3-da528914e2fb","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":27,"box":{"x":265,"y":572,"width":641,"height":11}},{"id":"208c927d-a946-4c0d-a561-23f0410c2175","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":587,"width":602,"height":11}},{"id":"05311e89-a9ec-47e1-973c-ced08af80b3d","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":602,"width":617,"height":11}},{"id":"34fde43f-eae5-4491-b04c-2a57073bc0e6","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":617,"width":629,"height":12}},{"id":"8050de26-91f3-4f78-9141-2cb424a39b8d","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":27,"box":{"x":264,"y":632,"width":628,"height":12}},{"id":"3d558bcc-de09-45a7-a873-acc9122bc4fc","block_type":"box","text":"ar ticles and books on these topics.","page_number":27,"box":{"x":265,"y":648,"width":251,"height":10}},{"id":"a66e9534-dc1e-4e9e-83d7-19bafb7ef396","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":27,"box":{"x":70,"y":670,"width":764,"height":11}},{"id":"5e9f8a5e-af0d-44cc-b4cb-8e3a5e59d638","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":686,"width":642,"height":11}},{"id":"08bd561b-3b92-4cfd-841b-906cd4a85ec6","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":27,"box":{"x":264,"y":700,"width":593,"height":12}},{"id":"f3481049-b6c2-4013-8ef6-b9b15e0b2078","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":27,"box":{"x":265,"y":715,"width":603,"height":12}},{"id":"3ee7ea2d-d67f-4051-8eb4-6dcf23bef2ec","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":731,"width":629,"height":11}},{"id":"b7c15067-5082-4910-a430-448c81b088f3","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0ec68f98-91f9-4d54-8f75-53bdc4f2600d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1008b92a-ad80-4b16-8190-0fe4cf552e62","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":28,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"7797d2ad-b741-45e9-987e-0d752580c06b","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":28,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"03ede0f6-c3c7-4c99-b0e4-96c7340898e5","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":28,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"6a66c76b-688f-40ec-b4ba-a34c47d4bf62","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":28,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"926e5b0e-a3b2-4856-a98a-b86c0c490de3","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":28,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"12a93db9-c0da-4739-a27e-2f05f979c677","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":28,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"e87b396c-a269-4e76-8286-0115dcf8a0c5","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":28,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"0b718498-7e84-4007-93e3-a18570664483","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":28,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"12a62bae-20e1-47b0-91a4-ef741ce40dd1","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":28,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"d884cece-89d7-4a23-bc93-97fc9e0b29c7","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":28,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"43c8ec0e-008e-4c62-8da0-0dfe22b9bc31","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":28,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"d7085ae4-9f64-4524-a569-832e2654986e","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":28,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"921bac3d-bade-4ace-9ffb-d7e210b9c209","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":28,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"b7dcf9de-e335-4244-a9d7-53ea92ec345b","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":28,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"210d6a3f-3e0e-4ed8-b4f4-c92359212b2c","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":28,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"2d1ea4ef-bb4f-471b-a2bb-cc76c3ad40ff","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":28,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"56747271-40ef-4248-b65b-f433d998d867","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":28,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"8ed73c50-b152-4a7f-8c7f-f1fc5aba52aa","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":28,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"92854778-c7f6-46fd-8e10-477db85b9e49","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":28,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"3b30449b-dc77-45c9-98f0-02ff858fbc57","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":28,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"85020edc-91ea-4905-8d00-d3c847fa51f9","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":28,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"987bddd4-ba01-46da-a79c-5c6ed5fc521d","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":28,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"579245ed-d5ba-446c-a8f0-009e36e0fdef","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":28,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"0e4d2b3d-9657-4c26-b526-724cd8453376","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":28,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"79b5e1b9-b532-4b2e-a0e5-e45842eef1dc","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":28,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"90c1f295-dc48-464c-bc5a-50d2f956f83c","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":28,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"3a28b08d-b3a4-4b66-8fb7-6a2ad479e791","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":28,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"6a31c791-fb49-438f-b098-d406d47dc533","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":28,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"747a21f6-d4fe-408a-a4bf-a036d81f0bc2","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":28,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"38abb4d2-7d1e-44b9-9e4a-ff8d4cd9f894","block_type":"box","text":"various private and non-profit boards.","page_number":28,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"204fc961-3d7c-4bcc-b456-dd02b33005b3","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":28,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"c179d61d-8f36-470d-b70a-b55ee94a54c3","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":28,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"01b176aa-c70b-4b17-937c-4c0c0c131587","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":28,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"50dc7e9b-4ab5-45e7-b8ce-48737edc2c3f","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":28,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"975b3027-be88-4db9-9fa6-ef5aa8af3525","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":28,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"7c203223-61f9-4b39-a502-374acdc3f1ee","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":28,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"6027168e-55c1-4e90-a125-e63a91292554","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":28,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"fa465c10-75d2-4536-a65f-dfdf4f2b605f","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. 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BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":35,"box":{"x":69,"y":196,"width":797,"height":11}},{"id":"ef03944f-930e-46d7-887d-0d00861bb650","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":35,"box":{"x":69,"y":211,"width":789,"height":11}},{"id":"26829b90-cf1c-47c1-95a9-0b7ef6585440","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. 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This contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent","page_number":35,"box":{"x":69,"y":355,"width":839,"height":11}},{"id":"a78d86bf-f6ea-4c55-921f-c759401b2f50","block_type":"box","text":"Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":35,"box":{"x":70,"y":370,"width":674,"height":11}},{"id":"e88ce513-78f5-474f-987d-5d2895e96faf","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":35,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"9609a319-6094-4657-8499-a0640a032923","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":35,"box":{"x":70,"y":407,"width":834,"height":12}},{"id":"81d6016b-b9cc-4286-84bd-eabb5449c252","block_type":"box","text":"to per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of","page_number":35,"box":{"x":68,"y":423,"width":825,"height":11}},{"id":"af7b3aed-792d-47f1-a1b6-9a041cbb9aec","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":35,"box":{"x":70,"y":438,"width":801,"height":11}},{"id":"3050965d-046e-4a20-89e8-fd8257bf443b","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":35,"box":{"x":70,"y":453,"width":823,"height":11}},{"id":"811c4f61-adea-4467-ad64-6f142c59017b","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":35,"box":{"x":70,"y":468,"width":508,"height":11}},{"id":"593b0780-bbad-434f-9dca-8b4b4e90dbbc","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Fund to the Manager, and","page_number":35,"box":{"x":101,"y":491,"width":787,"height":11}},{"id":"4c471511-c63e-4157-abb6-bcb5cec06857","block_type":"box","text":"the amounts waived by the Manager, for the periods indicated below.","page_number":35,"box":{"x":68,"y":506,"width":490,"height":11}},{"id":"05a0d080-1257-4bc2-87de-5736fc0d8980","block_type":"box","text":"Fees Paid to 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$276,845","page_number":35,"box":{"x":70,"y":561,"width":805,"height":11}},{"id":"648dbce1-b48c-49e3-8646-167aec1a57d7","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . . . . . . . . . . . . . . . . . . . $2,166,871 $ 931,035 $189,918","page_number":35,"box":{"x":70,"y":576,"width":805,"height":11}},{"id":"02639fbe-bca0-47a8-bfc4-eb02bd6693a6","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . . . . . . . . . . . . . . . . . . . $1,844,001 $ 800,695 $210,921","page_number":35,"box":{"x":70,"y":591,"width":805,"height":12}},{"id":"c5aa9496-56f6-402a-b5f2-005140cef721","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":35,"box":{"x":69,"y":624,"width":335,"height":11}},{"id":"b2d574c6-fdae-47b0-b0a8-cb036439ed1a","block_type":"box","text":"Raffaele Savi, Travis Cooke, CFA, and Richard Mathieson are the por tfolio managers and are jointly and 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career","page_number":36,"box":{"x":102,"y":90,"width":774,"height":11}},{"id":"290b25f1-474b-460b-ae9b-1c7557710bee","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":36,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"f6675ee7-9964-442c-ba5c-ca9360c4fb42","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":36,"box":{"x":69,"y":120,"width":823,"height":11}},{"id":"94b669bd-6387-4ca8-9e12-76825f1dddad","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":36,"box":{"x":69,"y":135,"width":799,"height":11}},{"id":"e2d6f359-1db2-469b-a220-399515bbab40","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":36,"box":{"x":70,"y":150,"width":670,"height":12}},{"id":"11828ca5-388f-46de-b45b-1fbf35097820","block_type":"box","text":"Base Compensation.","page_number":36,"box":{"x":102,"y":173,"width":148,"height":11}},{"id":"c30f9690-87c8-4156-8684-8a994cc7c269","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":36,"box":{"x":257,"y":173,"width":640,"height":11}},{"id":"5345de0e-ebf5-4372-b4ba-f6d76063b361","block_type":"box","text":"firm.","page_number":36,"box":{"x":68,"y":188,"width":32,"height":9}},{"id":"eb77caf2-41a9-472a-bcc0-1838c9c9dcf8","block_type":"box","text":"Discretionary Incentive Compensation","page_number":36,"box":{"x":69,"y":219,"width":277,"height":11}},{"id":"9d020bef-0a1d-4a72-afe2-64c9408f3fcd","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":36,"box":{"x":102,"y":241,"width":792,"height":11}},{"id":"a167a6ea-bb63-444a-ad02-b02df87ec58e","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":36,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"c79e0de4-6e2f-4b42-b745-b6e495dfebd8","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":36,"box":{"x":69,"y":271,"width":777,"height":12}},{"id":"85a952d0-ba6d-4962-92dc-edfadbe0a27d","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":36,"box":{"x":70,"y":286,"width":817,"height":11}},{"id":"5ccc014d-6204-4e96-af88-ec6320c338f4","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":36,"box":{"x":70,"y":302,"width":741,"height":11}},{"id":"8d714f7d-ec8a-4d5a-b067-acf3da05c105","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":36,"box":{"x":69,"y":317,"width":818,"height":11}},{"id":"aaed67c5-fb2d-4749-9f4c-1e433ad174b8","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":36,"box":{"x":69,"y":332,"width":806,"height":11}},{"id":"79b415df-f43c-4b28-911e-c79d039865e4","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs. Savi,","page_number":36,"box":{"x":69,"y":347,"width":836,"height":11}},{"id":"df55d3cd-5f1c-434d-af25-d2ef201be3e1","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":36,"box":{"x":69,"y":362,"width":493,"height":11}},{"id":"ecc96186-c27d-45a7-9532-4e7b34b5b4bf","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":36,"box":{"x":102,"y":385,"width":389,"height":11}},{"id":"ac241610-90a6-4209-9abe-80892e9ef1b6","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":36,"box":{"x":499,"y":385,"width":383,"height":11}},{"id":"87985f3f-d4cb-4ee2-a8fd-9b61885b5a5d","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":36,"box":{"x":70,"y":400,"width":815,"height":11}},{"id":"673dc88f-543e-4e16-a926-3a41eb9002a0","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":36,"box":{"x":68,"y":415,"width":522,"height":11}},{"id":"362bfd29-68cc-425c-a836-b4edae5293a0","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":36,"box":{"x":102,"y":438,"width":760,"height":11}},{"id":"cc192530-0fcd-49ce-b654-ef8deb7db8ae","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":36,"box":{"x":69,"y":453,"width":795,"height":11}},{"id":"6dd197a9-6b4a-4101-a394-5ed33eba9cce","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":36,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"15f4a5ab-8d97-41c2-b30b-732fcd234ab9","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":36,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"d461defb-7492-47af-bd8e-6bec527196c0","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":36,"box":{"x":68,"y":498,"width":839,"height":11}},{"id":"540e7a88-6272-4885-990f-f2e4c104d57f","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":36,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"52eeadc4-6911-4213-ac86-8d0fd39d3e00","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":36,"box":{"x":70,"y":528,"width":820,"height":12}},{"id":"f6595fe7-2f41-4d9f-9ec9-c24dfcd1bba3","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":36,"box":{"x":70,"y":543,"width":801,"height":12}},{"id":"cb1ed570-7463-49b6-8af3-f700a10ef041","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":36,"box":{"x":70,"y":559,"width":831,"height":11}},{"id":"2344eb85-09ab-43f2-9b5e-05478dfa1bec","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":36,"box":{"x":69,"y":574,"width":479,"height":11}},{"id":"60872e22-1f6c-4cb2-8e56-3ada8f264f37","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":36,"box":{"x":102,"y":596,"width":785,"height":12}},{"id":"43dd3609-61da-4919-8374-69298fab632f","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":36,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"6618f45b-4b4f-4650-ae80-6c29f5676cb5","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":36,"box":{"x":68,"y":627,"width":821,"height":11}},{"id":"036fb765-e0c7-437a-9baf-7b12afad7c49","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":36,"box":{"x":69,"y":642,"width":829,"height":11}},{"id":"d38a362c-093f-4e70-96c5-6bb2ec2fc369","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":36,"box":{"x":70,"y":657,"width":835,"height":11}},{"id":"6a43d9fa-1f5d-4bcb-9733-7101e4b0ba5d","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":36,"box":{"x":69,"y":672,"width":414,"height":11}},{"id":"a6b654cb-733d-4691-9975-7790916fa259","block_type":"box","text":"Other Compensation Benefits.","page_number":36,"box":{"x":101,"y":695,"width":218,"height":11}},{"id":"57417e20-bf71-497c-8fc0-d5debf2921a0","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":36,"box":{"x":327,"y":695,"width":552,"height":11}},{"id":"e2fe26a9-e8e9-42fe-bdfa-2824eed95f82","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":36,"box":{"x":69,"y":710,"width":582,"height":11}},{"id":"64172e81-46dd-4776-a235-657634bdba68","block_type":"box","text":"Incentive Savings Plans","page_number":36,"box":{"x":102,"y":733,"width":167,"height":11}},{"id":"9bc8e1e7-b136-4475-8c7a-354a47943894","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":36,"box":{"x":274,"y":732,"width":614,"height":12}},{"id":"bd0fb10f-8b4e-425b-abba-070c7ca9937f","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":36,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"4d0501de-fbff-44ec-b799-f4cb826b7b9f","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":36,"box":{"x":70,"y":763,"width":785,"height":11}},{"id":"17ea949e-a3cc-409f-9f85-7a9e2b0d6c01","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":36,"box":{"x":69,"y":777,"width":830,"height":12}},{"id":"4f84e1f8-4ec3-471f-9617-4b7ca0b29eaf","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":36,"box":{"x":69,"y":793,"width":799,"height":11}},{"id":"c5d7fd26-7a94-4f43-a176-f0ad662cb8ee","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":36,"box":{"x":69,"y":807,"width":831,"height":12}},{"id":"d86e9de9-40ba-4d0c-90ea-69748a63b1ec","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":36,"box":{"x":69,"y":823,"width":798,"height":12}},{"id":"17e36380-bda8-47a1-a462-7b637b41a980","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":36,"box":{"x":70,"y":838,"width":809,"height":12}},{"id":"0a48a512-d6df-46c1-87b7-488d2b24a432","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":36,"box":{"x":68,"y":853,"width":793,"height":12}},{"id":"19acecee-16dd-4463-9c74-552e820ef646","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":36,"box":{"x":70,"y":869,"width":832,"height":11}},{"id":"8ffcc53d-167e-4920-affd-380e0ca0d097","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":36,"box":{"x":68,"y":884,"width":805,"height":11}},{"id":"0fd8ce56-a27e-492f-a89b-d792fdb3fda1","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4c3ca0d2-78d1-45f1-9cdb-05a51ba71130","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b91c768e-946c-4267-a874-fa54b61d6717","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":37,"box":{"x":69,"y":44,"width":808,"height":12}},{"id":"edd38abf-c26d-4f6e-a29d-3310b1479b65","block_type":"box","text":"par ticipate in these plans.","page_number":37,"box":{"x":70,"y":60,"width":185,"height":11}},{"id":"1039a689-865e-4f52-bd4e-5e00b9dce32c","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":37,"box":{"x":69,"y":90,"width":268,"height":11}},{"id":"2663652a-3d38-4ca9-8887-84a8bb344720","block_type":"box","text":"As of March 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":37,"box":{"x":101,"y":113,"width":747,"height":11}},{"id":"cf1037d5-b00a-425a-a4db-ed47b6755122","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":37,"box":{"x":69,"y":128,"width":519,"height":11}},{"id":"730f81fa-1d89-479d-8c1f-d67300b17b28","block_type":"box","text":"Portfolio Manager","page_number":37,"box":{"x":69,"y":166,"width":105,"height":9}},{"id":"faae0790-717d-437e-ac19-08fd75e15aeb","block_type":"box","text":"Dollar Range of Equity","page_number":37,"box":{"x":759,"y":156,"width":129,"height":9}},{"id":"7797adcc-f607-4c59-96d0-112e0faaf989","block_type":"box","text":"Securities Beneficially Owned","page_number":37,"box":{"x":736,"y":166,"width":173,"height":9}},{"id":"40686478-475d-44d5-8f6e-f12de854917b","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":37,"box":{"x":70,"y":183,"width":750,"height":11}},{"id":"74f335e0-f150-4523-9317-113b18b05aa8","block_type":"box","text":"000,000","page_number":37,"box":{"x":822,"y":184,"width":63,"height":10}},{"id":"81558258-22a9-4558-9a0e-ac9d0c44e54a","block_type":"box","text":"Travis Cooke, CFA. . .","page_number":37,"box":{"x":68,"y":199,"width":148,"height":10}},{"id":"e6726fcb-08c0-4cfa-86dd-9c4859abce0c","block_type":"box","text":"............................................................","page_number":37,"box":{"x":223,"y":206,"width":482,"height":2}},{"id":"5e11ed95-6edf-49e1-9657-092a92c90f9c","block_type":"box","text":"$100,001 - $500,000","page_number":37,"box":{"x":744,"y":198,"width":158,"height":11}},{"id":"619d46a9-631a-4735-8018-19091ef7b4de","block_type":"box","text":"Richard Mathieson .","page_number":37,"box":{"x":70,"y":214,"width":138,"height":9}},{"id":"2b425449-5414-47ee-aeb6-f45e2ed57f57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":37,"box":{"x":214,"y":213,"width":589,"height":11}},{"id":"b9ec1c90-9198-451c-9032-2454af63bb47","block_type":"box","text":"$10,000","page_number":37,"box":{"x":808,"y":213,"width":62,"height":12}},{"id":"0a2ca260-48a0-4720-8f2b-545925653817","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":37,"box":{"x":69,"y":246,"width":403,"height":11}},{"id":"2d9f7d1c-92f9-478e-92a8-d9a35dd75527","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":37,"box":{"x":102,"y":268,"width":727,"height":12}},{"id":"c3dd0356-b770-439a-a3d4-6f53e4f525ae","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":37,"box":{"x":70,"y":283,"width":814,"height":12}},{"id":"196da129-bede-4268-a542-ca75f2cdea21","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":37,"box":{"x":70,"y":298,"width":837,"height":11}},{"id":"31636500-74f1-4595-bf3d-8b6521e14b8d","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":37,"box":{"x":70,"y":314,"width":810,"height":11}},{"id":"9dbb6c85-69ac-4a97-87fb-582744c0d03b","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":37,"box":{"x":69,"y":329,"width":782,"height":11}},{"id":"1a048599-8d5b-4dc9-af12-421a4f117d09","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":37,"box":{"x":69,"y":344,"width":830,"height":11}},{"id":"524a4d24-463c-4b07-b586-8ade5c09d877","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":37,"box":{"x":69,"y":359,"width":828,"height":11}},{"id":"b87c0be8-5c2b-4815-b021-08320657a573","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":37,"box":{"x":68,"y":374,"width":834,"height":11}},{"id":"fa014b9d-6c0b-4bd5-89ca-66f181de9315","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":37,"box":{"x":70,"y":389,"width":777,"height":11}},{"id":"df8940ee-c23a-465e-a81c-dd9b6b5121a6","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":37,"box":{"x":70,"y":404,"width":821,"height":12}},{"id":"693db1c4-0be2-4f2a-ad54-c62713d98a9e","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":37,"box":{"x":69,"y":420,"width":819,"height":10}},{"id":"ca061b79-7844-4a99-a0d4-ae683520b198","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":37,"box":{"x":69,"y":435,"width":832,"height":11}},{"id":"de8c8629-77da-4870-8474-1f150b25f538","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":37,"box":{"x":68,"y":450,"width":804,"height":11}},{"id":"b843d7a0-4d62-4e7f-8024-decef74ea725","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":37,"box":{"x":69,"y":465,"width":760,"height":11}},{"id":"5ef056a2-45fe-4463-88e4-2fb38c955681","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":37,"box":{"x":69,"y":480,"width":834,"height":11}},{"id":"1d6c2e5a-39ee-44db-b9f3-54f8665d1d9e","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":37,"box":{"x":69,"y":495,"width":836,"height":11}},{"id":"36281204-354c-4ed8-bbed-10cfeaa07642","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":37,"box":{"x":69,"y":510,"width":822,"height":11}},{"id":"014390f9-804b-48cc-9595-bbb1a849cda6","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":37,"box":{"x":70,"y":525,"width":835,"height":12}},{"id":"11303ac7-39f4-41b2-baaf-98504d18f66a","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Savi, Cooke and Mathieson","page_number":37,"box":{"x":69,"y":540,"width":806,"height":12}},{"id":"332d66b5-ba43-4725-aaa1-35e12f2d176b","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long","page_number":37,"box":{"x":69,"y":555,"width":834,"height":12}},{"id":"bd492237-98eb-400e-b744-7acefb8120a1","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":37,"box":{"x":69,"y":571,"width":822,"height":11}},{"id":"3b63b874-36fc-4f8a-a1e8-863aee5ef828","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":37,"box":{"x":70,"y":586,"width":390,"height":11}},{"id":"2cc66c8b-2e00-47cf-ae82-60642ba18b5a","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":37,"box":{"x":101,"y":608,"width":788,"height":12}},{"id":"4f6469b3-f757-4533-8d78-19dc92d7ffac","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":37,"box":{"x":70,"y":623,"width":839,"height":11}},{"id":"fd535544-f475-4dbb-8aa5-625b77dc7ef9","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":37,"box":{"x":68,"y":639,"width":823,"height":11}},{"id":"7cbb9ff3-ec14-463d-aba0-057fa6a9e28a","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":37,"box":{"x":68,"y":654,"width":812,"height":11}},{"id":"3db443bd-5230-4860-913e-7a34c05d126d","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":37,"box":{"x":69,"y":669,"width":777,"height":11}},{"id":"7524b5d1-fea9-4208-a8fa-8ab0670e159a","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":37,"box":{"x":70,"y":684,"width":826,"height":11}},{"id":"f50dec12-1b26-4e15-b108-e5aa9ebaf759","block_type":"box","text":"Administration Arrangements","page_number":37,"box":{"x":68,"y":714,"width":214,"height":11}},{"id":"6b21bcab-e5c1-4178-bb80-8062f71948b7","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":37,"box":{"x":102,"y":737,"width":711,"height":11}},{"id":"f04a8c5a-095f-47b1-883e-c9f166d5c154","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":37,"box":{"x":69,"y":752,"width":838,"height":11}},{"id":"cb6fcec9-1ffd-44c1-b60f-c02f3a36318b","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":37,"box":{"x":68,"y":767,"width":830,"height":11}},{"id":"9f27cc1b-f18f-4d19-9502-6cdc44b65555","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":37,"box":{"x":70,"y":782,"width":813,"height":12}},{"id":"9e1e8316-8271-4c02-90d7-881039345967","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":37,"box":{"x":69,"y":798,"width":837,"height":11}},{"id":"fb7aebe7-db14-44c2-9e85-421233f03ad9","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":37,"box":{"x":68,"y":812,"width":836,"height":12}},{"id":"18782c16-b524-4d08-98ef-a6ad4c166745","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":37,"box":{"x":68,"y":828,"width":785,"height":11}},{"id":"cfda6fe0-647f-407e-aa27-407e8a0d4f0c","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Fund’s officers,","page_number":37,"box":{"x":69,"y":843,"width":763,"height":11}},{"id":"2bd3b980-cf61-4c52-b73d-59a4c27ffcdf","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":37,"box":{"x":70,"y":858,"width":819,"height":11}},{"id":"2ba04f9c-0697-4690-9095-d19f65e9d338","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":37,"box":{"x":69,"y":873,"width":818,"height":11}},{"id":"b5f7a8d6-32bd-4227-b7ea-75aa60365cfe","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":37,"box":{"x":68,"y":888,"width":840,"height":11}},{"id":"51bd7998-bb0b-4880-a3db-5f9bb40aa865","block_type":"box","text":"reimburse the Fund for expenses.","page_number":37,"box":{"x":69,"y":903,"width":238,"height":11}},{"id":"95fe7593-3f9b-4949-974c-e7149c767855","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"71ac4433-40f6-4521-aea2-426812250fb0","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bef9fa12-1f8e-4fca-94af-0cf764d3f604","block_type":"box","text":"Under the Administration Agreement, the Fund pays to the Administrator a fee, computed daily and payable","page_number":38,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"d26f7be5-47af-4c6f-aa21-2928dbe818fb","block_type":"box","text":"monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average daily net assets,","page_number":38,"box":{"x":69,"y":59,"width":824,"height":12}},{"id":"b546f98e-e7bc-4a84-87ea-12f91409ae2b","block_type":"box","text":"0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next $1 billion of the Fund’s","page_number":38,"box":{"x":69,"y":74,"width":835,"height":12}},{"id":"06269163-b2f2-44d4-8556-6df2bd718ffb","block_type":"box","text":"average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net assets, 0.0325% of the next","page_number":38,"box":{"x":69,"y":89,"width":824,"height":12}},{"id":"5ebdf44f-128e-4c2d-a49a-47a70fe11b30","block_type":"box","text":"$9 billion of the Fund’s average daily net assets and 0.030% of the average daily net assets of the Fund in excess of","page_number":38,"box":{"x":69,"y":104,"width":836,"height":12}},{"id":"93443c78-aadd-4748-bd9a-7272869b2acc","block_type":"box","text":"$13 billion and (ii) 0.020% of average daily net assets allocated to each class of shares of the Fund.","page_number":38,"box":{"x":69,"y":120,"width":718,"height":12}},{"id":"58bacd76-3500-49fa-938d-bcbf1a127e2a","block_type":"box","text":"The table below sets for th the fees paid by the Fund to BlackRock under the Administration Agreement and the","page_number":38,"box":{"x":101,"y":143,"width":791,"height":11}},{"id":"aa554dc7-39e3-463e-af31-72490a3503fa","block_type":"box","text":"amounts waived and/or reimbursed for the periods indicated:","page_number":38,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"916972a4-9a95-4b2e-9952-c7ad8be1a5a5","block_type":"box","text":"Fees Paid to","page_number":38,"box":{"x":727,"y":186,"width":72,"height":7}},{"id":"347ee66a-8610-4c2f-b9ad-110c4e4c29db","block_type":"box","text":"BlackRock","page_number":38,"box":{"x":732,"y":197,"width":63,"height":7}},{"id":"d78f90f5-761c-4c2e-9034-608859d8920f","block_type":"box","text":"Fees Waived","page_number":38,"box":{"x":833,"y":186,"width":72,"height":7}},{"id":"a38f2227-90d8-4836-8664-703d301c0b0c","block_type":"box","text":"by BlackRock","page_number":38,"box":{"x":830,"y":197,"width":80,"height":8}},{"id":"c1c17fd5-fff8-4904-8453-f1611485a447","block_type":"box","text":"Fiscal Year Ended March 31, 2026. . . . . . . .","page_number":38,"box":{"x":70,"y":214,"width":308,"height":11}},{"id":"6fc59b16-468a-4989-a627-57206088c452","block_type":"box","text":".......................................","page_number":38,"box":{"x":384,"y":222,"width":311,"height":1}},{"id":"783c52eb-9925-4ed1-94c1-ad34902bea37","block_type":"box","text":"$372,276 $120,108","page_number":38,"box":{"x":727,"y":213,"width":178,"height":12}},{"id":"3e59a1cd-afb9-4ea5-b596-a3171741f6ea","block_type":"box","text":"Fiscal Year Ended March 31, 2025. . . . . . . .","page_number":38,"box":{"x":70,"y":229,"width":308,"height":11}},{"id":"68ab7d93-30de-4f85-9829-9c75349c33e8","block_type":"box","text":".......................................","page_number":38,"box":{"x":384,"y":237,"width":311,"height":1}},{"id":"43ef640b-ed35-4454-920a-82e5ee8d14a0","block_type":"box","text":"$270,867 $ 86,683","page_number":38,"box":{"x":727,"y":229,"width":178,"height":11}},{"id":"782046f2-8403-4ac0-80eb-f7d0fb4e5e03","block_type":"box","text":"Fiscal Year Ended March 31, 2024. . . . . . . .","page_number":38,"box":{"x":70,"y":244,"width":308,"height":11}},{"id":"45a67fb2-edda-42f3-9ae3-22d14d27bbdb","block_type":"box","text":".......................................","page_number":38,"box":{"x":384,"y":252,"width":311,"height":1}},{"id":"d762a66b-baa6-48f7-a416-f00a5a8522c5","block_type":"box","text":"$230,519 $ 73,779","page_number":38,"box":{"x":727,"y":244,"width":178,"height":11}},{"id":"afc1d42e-cd35-41b0-8850-dd3bba0ed8cc","block_type":"box","text":"Accounting Services","page_number":38,"box":{"x":68,"y":276,"width":150,"height":11}},{"id":"58a479be-2c82-4495-8c71-87287b040f8f","block_type":"box","text":"The Bank of New York Mellon serves as the accounting services provider to the Fund (the Accounting Agent“).","page_number":38,"box":{"x":101,"y":298,"width":781,"height":12}},{"id":"e64df2b2-5a45-45ab-b460-651de0db92a6","block_type":"box","text":"The Accounting Agent records investment, capital share and income and expense activities; verifies and transmits","page_number":38,"box":{"x":68,"y":314,"width":813,"height":11}},{"id":"42f57164-eec3-41b6-8ac0-d2594f137f7e","block_type":"box","text":"trade tickets; maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the","page_number":38,"box":{"x":68,"y":329,"width":809,"height":11}},{"id":"2e2a74bc-3e68-4355-80fa-22e215729cf8","block_type":"box","text":"Fund’s custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses,","page_number":38,"box":{"x":70,"y":344,"width":825,"height":11}},{"id":"15a10d31-fa2e-4bf1-b7c3-fabc92a78994","block_type":"box","text":"gains, losses and income; controls disbursements; works with independent pricing sources; and computes and","page_number":38,"box":{"x":68,"y":359,"width":793,"height":11}},{"id":"392ac5f7-d901-4afb-ab96-d83303ecd802","block_type":"box","text":"repor ts net asset value. In connection with its accounting services, the Accounting Agent also provides cer tain","page_number":38,"box":{"x":69,"y":374,"width":788,"height":11}},{"id":"05fc54b1-5143-4a54-b6f5-5876eef03438","block_type":"box","text":"administration services.","page_number":38,"box":{"x":69,"y":389,"width":170,"height":9}},{"id":"415fc291-99c6-44c1-925f-fca4b5754aed","block_type":"box","text":"The table below shows the amounts paid by the Fund to the Accounting Agent and the Manager for accounting","page_number":38,"box":{"x":101,"y":412,"width":785,"height":11}},{"id":"d7b1d476-f87d-49e6-9f62-f38c3b972f62","block_type":"box","text":"services for the periods indicated below.","page_number":38,"box":{"x":69,"y":427,"width":287,"height":11}},{"id":"60230f58-ec75-4338-98a0-1b1038f43685","block_type":"box","text":"Fees Paid to","page_number":38,"box":{"x":706,"y":455,"width":72,"height":7}},{"id":"3498226e-45be-4b70-ade8-59b51d064e34","block_type":"box","text":"the Accounting Agent","page_number":38,"box":{"x":678,"y":465,"width":128,"height":9}},{"id":"9c419153-a2e1-4a93-bec7-ef2e86d05e27","block_type":"box","text":"Fees Paid to","page_number":38,"box":{"x":837,"y":455,"width":72,"height":7}},{"id":"3b5bbf43-966c-45cd-a2d5-b6ef8fb9e285","block_type":"box","text":"the Manager","page_number":38,"box":{"x":835,"y":465,"width":74,"height":9}},{"id":"61005062-d3af-4ef7-89e5-feef7584fc26","block_type":"box","text":"Fiscal Year Ended March 31, 2026 . . . . . . .","page_number":38,"box":{"x":70,"y":483,"width":300,"height":11}},{"id":"954499aa-0de4-4594-8408-a71b14bb7792","block_type":"box","text":"..................................","page_number":38,"box":{"x":377,"y":491,"width":270,"height":1}},{"id":"43d7042c-d70b-4188-9a15-c59fa6d9661e","block_type":"box","text":"$69,044 $0","page_number":38,"box":{"x":711,"y":482,"width":171,"height":12}},{"id":"6334c06d-1b2c-4685-9777-e652717707da","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . . . . . . .","page_number":38,"box":{"x":70,"y":498,"width":300,"height":11}},{"id":"441c8ef4-dc29-4e56-9864-9e01414660cb","block_type":"box","text":"..................................","page_number":38,"box":{"x":377,"y":506,"width":270,"height":1}},{"id":"d957f1da-fbe7-470e-85e5-185de6c7b22b","block_type":"box","text":"$60,143 $0","page_number":38,"box":{"x":711,"y":498,"width":171,"height":11}},{"id":"fa410999-30ab-4c93-8b6b-3c08488629c2","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . . . . . . .","page_number":38,"box":{"x":70,"y":513,"width":300,"height":11}},{"id":"dd236212-3b26-4339-958d-35d42c4e181f","block_type":"box","text":"..................................","page_number":38,"box":{"x":377,"y":521,"width":270,"height":1}},{"id":"fb507a16-e96c-47f3-a50c-db8dbfd5c382","block_type":"box","text":"$56,573 $0","page_number":38,"box":{"x":711,"y":513,"width":171,"height":11}},{"id":"36e46336-a4fe-4f98-8683-777eec9fa627","block_type":"box","text":"Custodian","page_number":38,"box":{"x":69,"y":560,"width":72,"height":9}},{"id":"963925e2-34df-4eda-83ed-2ef2736e31bf","block_type":"box","text":"The Bank of New York Mellon, which has its principal offices at 240 Greenwich Street, New York, NY 10286, also","page_number":38,"box":{"x":101,"y":583,"width":807,"height":11}},{"id":"c3601f12-8870-4af6-a9a8-eb4926cd8cdc","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":38,"box":{"x":69,"y":598,"width":810,"height":11}},{"id":"b0cf830a-403f-44bb-b65b-3b0fe74d234c","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":38,"box":{"x":69,"y":613,"width":815,"height":11}},{"id":"5bc7774d-d840-433a-a1eb-4ac42b191247","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":38,"box":{"x":69,"y":628,"width":824,"height":11}},{"id":"275b8eba-c66a-4042-9518-bd0973efd1c7","block_type":"box","text":"the assets of the Fund.","page_number":38,"box":{"x":68,"y":643,"width":165,"height":9}},{"id":"b605ac6a-2796-4124-bb7e-e7cdc35535d5","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":38,"box":{"x":68,"y":673,"width":432,"height":11}},{"id":"cfc775c7-8a42-4cdf-b055-425028232fd7","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (”BNY Mellon“), which has its principal place of business at 118","page_number":38,"box":{"x":102,"y":696,"width":765,"height":11}},{"id":"c981feb3-1628-4529-aaa3-27b9bdcfea90","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":38,"box":{"x":70,"y":711,"width":838,"height":11}},{"id":"e70d6c6b-8fde-4abc-be35-cfac336cbfcb","block_type":"box","text":"Fund.","page_number":38,"box":{"x":70,"y":726,"width":36,"height":9}},{"id":"262a0403-f8a9-468a-ba2a-45c67d46e1ae","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides cer tain shareholder","page_number":38,"box":{"x":102,"y":749,"width":762,"height":11}},{"id":"909ed610-ef22-433a-aedb-82016e0aea20","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":38,"box":{"x":70,"y":764,"width":834,"height":11}},{"id":"4d286420-fb9a-4e08-8d3c-52794aac9f77","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":38,"box":{"x":70,"y":779,"width":823,"height":11}},{"id":"d8117904-a571-4b08-8853-996469561a75","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual repor t.","page_number":38,"box":{"x":69,"y":794,"width":807,"height":12}},{"id":"9a93139f-682b-4eac-9780-84adb2025b67","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"aa06228a-313a-4aa7-bbfa-6f1074ed780e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7df8c73-a11b-4be4-9665-eee2a1d9b350","block_type":"box","text":"For the past three fiscal years, the Fund reimbursed to BlackRock fees for shareholder liaison services pursuant","page_number":39,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"f0f923fa-bf91-4467-9316-dc66b4098582","block_type":"box","text":"to such agreement as follows:","page_number":39,"box":{"x":68,"y":60,"width":214,"height":11}},{"id":"b1e4167a-125e-4fa2-a9dd-99344329fae4","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":39,"box":{"x":583,"y":88,"width":327,"height":9}},{"id":"2318014f-c489-44b5-b9ef-1d1fdbd66ed8","block_type":"box","text":"Fiscal Year Ended March 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,977 $11,977","page_number":39,"box":{"x":70,"y":105,"width":791,"height":11}},{"id":"e09639ab-b4b0-4b08-b82a-0f6b618be564","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,205 $12,205","page_number":39,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"c904ba62-b42c-48c9-a542-eba62822f336","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,341 $ 8,341","page_number":39,"box":{"x":70,"y":135,"width":792,"height":11}},{"id":"0c9958fb-07c7-4756-b317-2512d9a5c053","block_type":"box","text":"Credit Agreement","page_number":39,"box":{"x":69,"y":183,"width":129,"height":11}},{"id":"460296f1-e1bc-4fd2-9cd3-216ad264a867","block_type":"box","text":"The Fund, along with cer tain other funds managed by the Manager and its affiliates (“Par ticipating Funds”), is a","page_number":39,"box":{"x":101,"y":205,"width":797,"height":12}},{"id":"9c9c9b5e-1b9f-4ddc-9f2e-b7b3e0302755","block_type":"box","text":"par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on April 8, 2027,","page_number":39,"box":{"x":70,"y":220,"width":821,"height":12}},{"id":"b0da05b3-a4be-48b8-a461-91898ec7d201","block_type":"box","text":"unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated for a cer tain","page_number":39,"box":{"x":69,"y":235,"width":810,"height":12}},{"id":"7d56bbdb-06c5-4eb9-9fec-918c437d7cfc","block_type":"box","text":"Par ticipating Fund, the Par ticipating Funds, including the Fund, can borrow up to an aggregate commitment amount of","page_number":39,"box":{"x":69,"y":251,"width":840,"height":11}},{"id":"8b26a4a7-ef90-40ca-b23f-dc480710c98d","block_type":"box","text":"$1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the Credit","page_number":39,"box":{"x":69,"y":265,"width":793,"height":12}},{"id":"04e37b6b-f02e-4fd1-8a89-f2cd7438258b","block_type":"box","text":"Agreement. The Fund may borrow under the Credit Agreement to meet shareholder redemptions and for other lawful","page_number":39,"box":{"x":68,"y":281,"width":825,"height":11}},{"id":"5e8cd892-dc78-4d28-8fc4-50bca5e06d41","block_type":"box","text":"purposes. However, the Fund may not borrow under the Credit Agreement for leverage. The Fund may borrow up to","page_number":39,"box":{"x":70,"y":296,"width":813,"height":11}},{"id":"0c31dbce-b273-40be-b2ac-da72e86925c1","block_type":"box","text":"the maximum amount allowable under its current Prospectuses and SAI, subject to various other legal, regulatory or","page_number":39,"box":{"x":68,"y":311,"width":829,"height":11}},{"id":"0536333f-8c9d-42ed-aa3a-a584043c5454","block_type":"box","text":"contractual limits. Borrowing results in interest expense and other fees and expenses for the Fund which may impact","page_number":39,"box":{"x":69,"y":326,"width":834,"height":11}},{"id":"fad498df-9fa5-44e0-bf72-ab0a6dfab981","block_type":"box","text":"the Fund’s net expenses. The costs of borrowing may reduce the Fund’s return. The Fund is charged its pro rata","page_number":39,"box":{"x":68,"y":341,"width":800,"height":12}},{"id":"c777df77-0793-492f-9097-be0634555113","block_type":"box","text":"share of upfront fees and commitment fees on the aggregate commitment amount based on its net assets. If the","page_number":39,"box":{"x":69,"y":356,"width":809,"height":12}},{"id":"35fad5c4-27af-4938-8d78-a25984b603a0","block_type":"box","text":"Fund borrows pursuant to the Credit Agreement, the Fund will be charged interest at a variable rate.","page_number":39,"box":{"x":70,"y":372,"width":710,"height":11}},{"id":"e1c1d2ec-5500-4173-a7fa-17301329f18e","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":39,"box":{"x":68,"y":402,"width":491,"height":11}},{"id":"74bc763f-20b7-46e0-a6dd-bb9eef3ff767","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":39,"box":{"x":102,"y":424,"width":773,"height":12}},{"id":"fcb3612f-2a67-4774-90e8-0e9caae5bcf3","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":39,"box":{"x":69,"y":440,"width":834,"height":11}},{"id":"e3bc61c8-7efd-464d-95a7-0dfcb6dd2b90","block_type":"box","text":"three fiscal years. BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the","page_number":39,"box":{"x":68,"y":455,"width":826,"height":11}},{"id":"b0ef887c-8ca3-4872-83e0-9e43a779b2a9","block_type":"box","text":"Fund’s sole distributor.","page_number":39,"box":{"x":70,"y":470,"width":161,"height":9}},{"id":"c4e38b4e-d753-40de-b7b7-2b3a2b1f0c72","block_type":"box","text":"Investor A Shares","page_number":39,"box":{"x":630,"y":498,"width":102,"height":7}},{"id":"aa425bee-cb7e-498a-86e9-aa1a43eab7d3","block_type":"box","text":"Gross","page_number":39,"box":{"x":478,"y":514,"width":32,"height":7}},{"id":"2ec39768-209d-4930-ad35-d5d32cc48a53","block_type":"box","text":"Sales Charges","page_number":39,"box":{"x":452,"y":524,"width":83,"height":9}},{"id":"77121d79-042a-404b-80e3-8423816857ea","block_type":"box","text":"Collected","page_number":39,"box":{"x":466,"y":534,"width":55,"height":7}},{"id":"3342b565-25c1-4379-98c9-b23ae1b5971b","block_type":"box","text":"Sales Charges","page_number":39,"box":{"x":565,"y":514,"width":84,"height":9}},{"id":"ef01d1a0-4072-41f6-8935-ba06ceb668c6","block_type":"box","text":"Retained","page_number":39,"box":{"x":582,"y":524,"width":51,"height":7}},{"id":"2013377c-5145-4796-a59d-499803c817ce","block_type":"box","text":"by BRIL","page_number":39,"box":{"x":586,"y":534,"width":44,"height":9}},{"id":"621768c0-9361-4890-9d8e-cf98e8ccf743","block_type":"box","text":"Sales Charges","page_number":39,"box":{"x":679,"y":514,"width":83,"height":9}},{"id":"817c78fc-6df4-4046-be07-9d2caedbe08d","block_type":"box","text":"Paid to","page_number":39,"box":{"x":701,"y":524,"width":40,"height":7}},{"id":"14e8764f-135a-401b-b9c2-0424b2bea17d","block_type":"box","text":"Affiliates","page_number":39,"box":{"x":694,"y":534,"width":52,"height":7}},{"id":"87bdb547-e509-45b0-a3eb-5022158a3789","block_type":"box","text":"CDSCs Received","page_number":39,"box":{"x":802,"y":514,"width":97,"height":7}},{"id":"59016cbd-36c1-4272-9382-959660d7b96e","block_type":"box","text":"on Redemption of","page_number":39,"box":{"x":800,"y":524,"width":102,"height":9}},{"id":"666ec178-3bc2-4213-9cdc-c4610770be38","block_type":"box","text":"Load Waived Shares","page_number":39,"box":{"x":793,"y":534,"width":116,"height":7}},{"id":"ee0d6ab0-0ec6-43ca-b0e7-924cffdb0199","block_type":"box","text":"Fiscal Year Ended March 31, 2026 . .","page_number":39,"box":{"x":70,"y":552,"width":261,"height":10}},{"id":"5893136b-5b00-45cd-ba96-fe9300f34576","block_type":"box","text":"...........","page_number":39,"box":{"x":338,"y":559,"width":83,"height":2}},{"id":"e4625dd0-e1d8-44f9-a93f-06f7a1ce6d46","block_type":"box","text":"$28,130 $2,016 $2,016 $ 490","page_number":39,"box":{"x":463,"y":551,"width":419,"height":11}},{"id":"7699f53e-52f8-4a0c-b80b-fb78d1531e27","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . .","page_number":39,"box":{"x":70,"y":567,"width":261,"height":10}},{"id":"a9ec35ec-8d58-4aeb-81b3-0c52a53bf513","block_type":"box","text":"...........","page_number":39,"box":{"x":338,"y":574,"width":83,"height":2}},{"id":"053a9543-faa8-4eee-b34f-d0e70119a64c","block_type":"box","text":"$40,688 $3,255 $3,255 $10,517","page_number":39,"box":{"x":463,"y":566,"width":418,"height":11}},{"id":"4e542a19-1316-4c30-aac2-b2b1159af984","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . .","page_number":39,"box":{"x":70,"y":582,"width":261,"height":10}},{"id":"55da6db0-66cb-402c-82b3-ae545c066ffb","block_type":"box","text":"...........","page_number":39,"box":{"x":338,"y":589,"width":83,"height":2}},{"id":"e779197e-cea3-401a-ae85-ce85bce84277","block_type":"box","text":"$16,913 $1,324 $1,324 $ 526","page_number":39,"box":{"x":463,"y":581,"width":419,"height":11}},{"id":"3481fb44-e35b-463c-8668-d7d1432fcacc","block_type":"box","text":"Investor C Shares","page_number":39,"box":{"x":760,"y":627,"width":103,"height":7}},{"id":"0097c91f-dd01-4318-bec4-e67d59060580","block_type":"box","text":"CDSCs Received","page_number":39,"box":{"x":713,"y":642,"width":97,"height":8}},{"id":"8a336fee-490e-4aa3-8608-a38ef52e9f2c","block_type":"box","text":"by BRIL","page_number":39,"box":{"x":740,"y":653,"width":44,"height":8}},{"id":"3282310b-98b6-41d4-9365-a1730cba90d1","block_type":"box","text":"CDSCs Paid","page_number":39,"box":{"x":840,"y":642,"width":69,"height":8}},{"id":"f7b13ad9-efdc-474b-996a-04ced66dc822","block_type":"box","text":"to Affiliates","page_number":39,"box":{"x":841,"y":652,"width":68,"height":8}},{"id":"fd1be2bb-4d4c-4bc7-af8a-dc460747003c","block_type":"box","text":"Fiscal Year Ended March 31, 2026 . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":670,"width":433,"height":11}},{"id":"16e7b66b-3230-413c-a796-1018d74c9968","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $ 62 $ 62","page_number":39,"box":{"x":509,"y":669,"width":384,"height":11}},{"id":"db937e17-85e8-4868-b60a-f2fa056fcf5a","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":685,"width":433,"height":11}},{"id":"9c152297-ce0e-407b-b5e7-b77b336c2c41","block_type":"box","text":"......................","page_number":39,"box":{"x":509,"y":693,"width":173,"height":1}},{"id":"80f27496-6d14-4d1b-b176-7b57584b854f","block_type":"box","text":"$112 $112","page_number":39,"box":{"x":743,"y":685,"width":150,"height":10}},{"id":"fc889a9f-e89c-4b5b-a738-567f508092ec","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":700,"width":433,"height":11}},{"id":"6e7cd91a-dde5-4f76-b319-4590bca3a787","block_type":"box","text":"......................","page_number":39,"box":{"x":509,"y":708,"width":173,"height":1}},{"id":"9723c6a5-4294-4ad0-a32a-8c99aa9e306f","block_type":"box","text":"$287 $287","page_number":39,"box":{"x":743,"y":700,"width":150,"height":10}},{"id":"a95ac225-896d-4644-a487-5f897c192fb8","block_type":"box","text":"The table below provides information for the fiscal year ended March 31, 2026 about the 12b-1 fees the Fund","page_number":39,"box":{"x":101,"y":739,"width":785,"height":12}},{"id":"b70e55ad-d8c2-4d04-86d3-c0d8fb98e902","block_type":"box","text":"paid to BRIL under the Fund’s 12b-1 plans. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":39,"box":{"x":70,"y":755,"width":838,"height":11}},{"id":"a26a0efd-4e48-4f2c-9a17-bb361ff336bd","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":39,"box":{"x":69,"y":770,"width":826,"height":11}},{"id":"83d0cdb2-a553-4a44-a84b-eaed0162683e","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":39,"box":{"x":69,"y":785,"width":409,"height":9}},{"id":"be7895e0-67e2-406b-bd13-1f09f99c814f","block_type":"box","text":"Class Name","page_number":39,"box":{"x":69,"y":813,"width":68,"height":7}},{"id":"bb7880be-d0b7-4418-a590-153d1d957d63","block_type":"box","text":"Fees Paid to BRIL","page_number":39,"box":{"x":806,"y":813,"width":103,"height":7}},{"id":"15ba0d47-9f3c-4c9a-a10c-1021b9d88652","block_type":"box","text":"Investor A Shares .","page_number":39,"box":{"x":70,"y":831,"width":134,"height":9}},{"id":"3adb1aff-8f96-408a-a17f-35031fa4945b","block_type":"box","text":"......................................................................","page_number":39,"box":{"x":210,"y":838,"width":564,"height":2}},{"id":"264956ea-549a-4a87-929e-393b9dea5ae5","block_type":"box","text":"$447,603","page_number":39,"box":{"x":822,"y":830,"width":71,"height":11}},{"id":"bd17a7a6-2d66-49d9-b155-cd69f096bca2","block_type":"box","text":"Investor C Shares . . .","page_number":39,"box":{"x":70,"y":846,"width":150,"height":9}},{"id":"078050c3-2967-49da-896c-437a261ac5a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,435","page_number":39,"box":{"x":226,"y":845,"width":667,"height":11}},{"id":"a80f31fd-7b89-4381-89ab-8e5b271715c4","block_type":"box","text":"Class R Shares","page_number":39,"box":{"x":69,"y":861,"width":109,"height":9}},{"id":"2e9efbbd-02eb-4933-b4cf-00b64005f63e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,100","page_number":39,"box":{"x":185,"y":860,"width":708,"height":12}},{"id":"61a910b8-dbc6-4165-92a3-8615964e856f","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"86ea6cb9-a980-4f7c-86be-3dd8cb945172","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"568921f7-24bf-40f6-ab5e-e3ab04d786a9","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":40,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"a46968c5-4163-4343-97d1-23638091f76c","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund, based on the","page_number":40,"box":{"x":101,"y":67,"width":795,"height":12}},{"id":"f5e319ec-5cca-438b-83ea-efd676ff4263","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of","page_number":40,"box":{"x":68,"y":82,"width":723,"height":12}},{"id":"1a292a09-bd2f-4ab8-915d-40c2b71fbd6d","block_type":"box","text":"March 31, 2026 follows:","page_number":40,"box":{"x":70,"y":98,"width":174,"height":10}},{"id":"baa25106-afb1-4de0-aec1-113da3e30fae","block_type":"box","text":"Investor A Shares","page_number":40,"box":{"x":805,"y":126,"width":102,"height":7}},{"id":"03e06f38-b639-401b-a61d-15400825f3bf","block_type":"box","text":"Net Assets","page_number":40,"box":{"x":70,"y":144,"width":76,"height":9}},{"id":"5f63bddf-3120-4135-90de-b27c2e8f27a8","block_type":"box","text":".............................................................................","page_number":40,"box":{"x":150,"y":151,"width":621,"height":1}},{"id":"c302a175-8479-41a3-ab22-392fbaeba930","block_type":"box","text":"$182,593,703","page_number":40,"box":{"x":803,"y":143,"width":106,"height":11}},{"id":"9f32ebb0-9c1c-481b-9364-c0e6579ff09e","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":40,"box":{"x":70,"y":159,"width":245,"height":11}},{"id":"fe814c9d-56a4-479c-863b-1c401c391bc5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,","page_number":40,"box":{"x":321,"y":159,"width":524,"height":10}},{"id":"1a37cd24-750c-4e98-807d-6878aa84d9ee","block_type":"box","text":"144,662","page_number":40,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"3927e1ef-29b2-4738-8bf5-dd9c79f0bd2c","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":40,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"f6d189b1-1638-4e81-a3a3-1a43e0f3f7b9","block_type":"box","text":"................","page_number":40,"box":{"x":647,"y":181,"width":124,"height":2}},{"id":"05e9901d-3288-48c3-b34f-0788fe469292","block_type":"box","text":"$29.72","page_number":40,"box":{"x":857,"y":173,"width":52,"height":11}},{"id":"e957d77c-4194-4a54-8bd1-e3557b810234","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":40,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"91d150c1-395e-4ae2-b9bf-8b95e8429c11","block_type":"box","text":"1","page_number":40,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"985915f1-9bf2-4a88-ab14-e1797b9a9deb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.64","page_number":40,"box":{"x":615,"y":188,"width":294,"height":11}},{"id":"11b21ad7-1867-4522-9072-54f4f5cc1546","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":69,"y":208,"width":702,"height":12}},{"id":"1f623653-a63b-4a11-9177-a019014fc3a3","block_type":"box","text":"$31.36","page_number":40,"box":{"x":857,"y":208,"width":52,"height":10}},{"id":"cb29811a-6d34-4379-ba5c-3d38e66eaf8c","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"afcfd8ba-7f73-4cc5-a701-7827c70b81bb","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge applicable.","page_number":40,"box":{"x":94,"y":241,"width":527,"height":8}},{"id":"921cf12c-021a-4ab7-a152-5b81f93b1f73","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":40,"box":{"x":101,"y":261,"width":787,"height":12}},{"id":"db9a7a01-7262-4d6f-a479-d9e2b0c211c9","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":40,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"876eb2dd-8575-4442-ad3f-10e6ffc3c688","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":40,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"927361e9-05ce-406f-bb9a-81a72edd0472","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this Statement of Additional Information.","page_number":40,"box":{"x":69,"y":307,"width":607,"height":11}},{"id":"e1649df1-2e4d-4292-a9ee-14c52de704c5","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":40,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"6273060e-e219-43f7-a319-c60643c28702","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this Statement of Additional Information for more","page_number":40,"box":{"x":102,"y":360,"width":750,"height":11}},{"id":"40887057-93bd-438f-9749-fd0ca16cc084","block_type":"box","text":"information.","page_number":40,"box":{"x":70,"y":375,"width":83,"height":9}},{"id":"1fc89a1b-d004-4337-9ef7-dfa9e6559647","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates, is set","page_number":40,"box":{"x":102,"y":397,"width":794,"height":12}},{"id":"d065a0c8-c2d6-4602-b8bb-ccaf74d724a8","block_type":"box","text":"for th in the following table:","page_number":40,"box":{"x":68,"y":412,"width":191,"height":12}},{"id":"cd4f6a10-c381-461e-bf8a-1d8ee870c391","block_type":"box","text":"Aggregate Brokerage","page_number":40,"box":{"x":648,"y":441,"width":125,"height":9}},{"id":"8b4ee331-3f57-4b54-aa3d-2c23cbc92b6e","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":658,"y":451,"width":105,"height":7}},{"id":"72f7c45b-3819-4c2c-a69c-5b75e7207f82","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":803,"y":441,"width":106,"height":7}},{"id":"fd4d11d0-4381-4329-921a-f7cafd9e02d6","block_type":"box","text":"to Affiliates","page_number":40,"box":{"x":822,"y":451,"width":68,"height":7}},{"id":"6699c5f5-2775-492f-bac0-d1df0f12b5f3","block_type":"box","text":"Fiscal Year Ended March 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":469,"width":457,"height":10}},{"id":"cff358f6-1c01-48ce-aed9-4b0e78510926","block_type":"box","text":". . . . . . . . . . . $291,044 $0","page_number":40,"box":{"x":534,"y":468,"width":331,"height":11}},{"id":"e9f3ebbe-022b-4d75-ab06-6d40837aa00f","block_type":"box","text":"Fiscal Year Ended March 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":484,"width":457,"height":10}},{"id":"5a5775ef-ee28-46db-bd7c-bdddc1c2e472","block_type":"box","text":". . . . . . . . . . . $232,188 $0","page_number":40,"box":{"x":534,"y":483,"width":331,"height":11}},{"id":"f02a6813-10f5-4b5c-a4ab-4eabf0e32dd8","block_type":"box","text":"Fiscal Year Ended March 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":499,"width":457,"height":10}},{"id":"054d9528-caa5-4ee1-98a7-059114f63b5a","block_type":"box","text":". . . . . . . . . . . $271,621 $0","page_number":40,"box":{"x":534,"y":498,"width":331,"height":11}},{"id":"31928bae-c887-4469-98d7-64af7874ea81","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":40,"box":{"x":101,"y":538,"width":770,"height":11}},{"id":"2741d556-17d3-45e3-a6f0-dcac3f69ba95","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":40,"box":{"x":69,"y":553,"width":814,"height":11}},{"id":"0f1f5aba-4722-4722-9185-effbdc427f0b","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended March 31, 2026. The provision","page_number":40,"box":{"x":68,"y":568,"width":825,"height":11}},{"id":"ebc99625-f3ec-48d6-862b-6a96f459bd22","block_type":"box","text":"of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage","page_number":40,"box":{"x":69,"y":583,"width":771,"height":12}},{"id":"484b85ad-6565-443e-af63-e5ece8273672","block_type":"box","text":"business with such brokers.","page_number":40,"box":{"x":69,"y":599,"width":198,"height":8}},{"id":"003954d6-0576-4382-ac50-636b39b722ee","block_type":"box","text":"Amount of","page_number":40,"box":{"x":330,"y":627,"width":60,"height":7}},{"id":"34ee6b5a-d9b0-4520-854b-97291ebb0512","block_type":"box","text":"Commissions Paid to","page_number":40,"box":{"x":299,"y":637,"width":122,"height":7}},{"id":"b5ae17a9-6c43-4709-895b-d22b06aefbb6","block_type":"box","text":"Brokers for Providing","page_number":40,"box":{"x":299,"y":647,"width":122,"height":9}},{"id":"006f88c6-219c-4063-8bf5-df1c049c2f89","block_type":"box","text":"28(e) Eligible Research Services","page_number":40,"box":{"x":264,"y":657,"width":191,"height":9}},{"id":"0fffa0c2-2d9e-4d17-9270-512e8bbd9ae6","block_type":"box","text":"Amount of Brokerage","page_number":40,"box":{"x":588,"y":647,"width":124,"height":9}},{"id":"925928bd-c83f-4256-8e49-06c6a0f0f00c","block_type":"box","text":"Transactions Involved","page_number":40,"box":{"x":587,"y":657,"width":126,"height":7}},{"id":"83b96a83-953a-4fee-97fc-d786ee03871c","block_type":"box","text":"$168,019 $486,928,055","page_number":40,"box":{"x":324,"y":674,"width":380,"height":11}},{"id":"dd294def-e81e-4c81-9850-51f8c5a7b8dd","block_type":"box","text":"As of March 31, 2026, the value of the Fund’s aggregate holdings of the securities of its brokers or dealers (as","page_number":40,"box":{"x":101,"y":698,"width":795,"height":12}},{"id":"f53a6ef1-81c3-4fab-8009-4f8657fbc3d6","block_type":"box","text":"defined in Rule 10b-1 under the Investment Company Act) or their parents, if any por tion of such holdings were","page_number":40,"box":{"x":69,"y":714,"width":791,"height":11}},{"id":"cd766834-f8e6-4984-b250-f501c43912c4","block_type":"box","text":"purchased during the fiscal year ended March 31, 2026, is as follows:","page_number":40,"box":{"x":70,"y":729,"width":500,"height":11}},{"id":"539d7a80-4e4b-4fb7-8a36-987668cf6d99","block_type":"box","text":"Regular Broker/Dealer","page_number":40,"box":{"x":69,"y":777,"width":132,"height":9}},{"id":"d4f9c6e3-3cfe-4bc0-a247-c94b9b3101af","block_type":"box","text":"Debt","page_number":40,"box":{"x":775,"y":757,"width":26,"height":7}},{"id":"b1a9af0c-25e6-4048-8e82-718469a20122","block_type":"box","text":"(D)/Equity","page_number":40,"box":{"x":757,"y":767,"width":62,"height":9}},{"id":"f77316b3-adf8-4fbb-8925-6e5eceb5f928","block_type":"box","text":"(E)","page_number":40,"box":{"x":780,"y":777,"width":16,"height":9}},{"id":"45f92087-8ee4-44dd-8c40-73906873377d","block_type":"box","text":"Aggregate","page_number":40,"box":{"x":849,"y":757,"width":60,"height":9}},{"id":"6e7623b8-71dd-46f9-b0ff-3df61bd66b8e","block_type":"box","text":"Holdings","page_number":40,"box":{"x":855,"y":767,"width":49,"height":9}},{"id":"032fd146-ba04-4fe3-b3c2-f3ab37baf66c","block_type":"box","text":"(000’s)","page_number":40,"box":{"x":858,"y":777,"width":42,"height":9}},{"id":"60244266-2888-40c8-8efc-b39025c8b268","block_type":"box","text":"BlackRock Liquidity Funds T-Fund . . . .","page_number":40,"box":{"x":70,"y":795,"width":265,"height":11}},{"id":"64770a28-d40b-48c5-bba4-5bcb87c5c507","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $8,227","page_number":40,"box":{"x":341,"y":794,"width":564,"height":11}},{"id":"b26965f0-daf3-476f-bc1e-8fb0fdf53ea0","block_type":"box","text":"Jefferies LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $1,828","page_number":40,"box":{"x":69,"y":809,"width":836,"height":11}},{"id":"449ede01-46db-44c2-b943-f3e5882871b9","block_type":"box","text":"Securities Lending","page_number":40,"box":{"x":68,"y":842,"width":135,"height":11}},{"id":"21cbca68-1cb2-4123-b178-428bc95139e1","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":40,"box":{"x":101,"y":864,"width":807,"height":11}},{"id":"603d30d4-3fd5-4ec3-9dbf-af795b37f849","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":40,"box":{"x":69,"y":879,"width":817,"height":12}},{"id":"6187ef57-5468-4832-9521-07a290c8d072","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":40,"box":{"x":69,"y":894,"width":813,"height":12}},{"id":"47e98398-20cb-422f-9594-8ef12d0d9012","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":40,"box":{"x":70,"y":909,"width":838,"height":12}},{"id":"ddff8a8e-dd7d-4681-9f7c-b14a7fefadc8","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"aefff4ea-aed5-4824-9401-67cb5d4d264a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7f37a3f-0ea3-4093-9951-4f58fc3d756b","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"716f62ad-6390-43b3-86d9-1d1fefc43552","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":41,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"0b11b022-7455-4743-a2cc-a98594b07cb8","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":41,"box":{"x":101,"y":82,"width":735,"height":12}},{"id":"bacaad0e-32ce-4ca7-bac8-32d9ef4d185a","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":41,"box":{"x":69,"y":98,"width":834,"height":11}},{"id":"307b281a-70ec-4672-988c-6d8d8b3526da","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":41,"box":{"x":70,"y":113,"width":822,"height":11}},{"id":"8f104b38-78ee-4e72-be33-19f73bbb5cd2","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":41,"box":{"x":69,"y":128,"width":787,"height":11}},{"id":"ee2c62ca-2e80-418e-b58f-282ab5a0905a","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":41,"box":{"x":69,"y":143,"width":783,"height":11}},{"id":"bbf7f6ff-6d83-455d-82c1-5cfd42f6355b","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":41,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"9182d2ae-61d4-43ef-a2a5-7400a17893e0","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":41,"box":{"x":70,"y":173,"width":813,"height":11}},{"id":"923e755a-f490-4d26-bda3-b184fbf3d51f","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":41,"box":{"x":70,"y":188,"width":830,"height":12}},{"id":"4f336bfd-9c29-4827-a30a-f6905c47be8e","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":41,"box":{"x":69,"y":203,"width":773,"height":12}},{"id":"588620e0-4c32-4c57-ae31-39cd23deecba","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":41,"box":{"x":101,"y":226,"width":776,"height":11}},{"id":"77355540-d5e8-4f8d-9b70-685ea6b61df8","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":41,"box":{"x":69,"y":241,"width":831,"height":11}},{"id":"aa688b71-20b3-485a-97e2-699ba06f3b88","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":41,"box":{"x":68,"y":256,"width":812,"height":12}},{"id":"071167c2-9a01-481d-8d02-7ca0d4d38570","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":41,"box":{"x":69,"y":271,"width":799,"height":12}},{"id":"4e4bd26f-24f6-414f-a74b-f288a30f0200","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":41,"box":{"x":68,"y":286,"width":835,"height":12}},{"id":"49120500-e7ed-44e8-9d06-cbb50e48de24","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":41,"box":{"x":69,"y":302,"width":818,"height":11}},{"id":"3b12a827-2e83-4f77-a9e2-da52ae8b4eeb","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":41,"box":{"x":68,"y":317,"width":789,"height":11}},{"id":"56544615-6b68-4586-ba3e-abc149473269","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":41,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"bc6db4ca-4781-41b9-bbc0-61eef01c0f7e","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":41,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"1fac1843-8aa5-46fa-9aaa-628774393d59","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":41,"box":{"x":69,"y":362,"width":802,"height":11}},{"id":"b08d0cf6-3a90-47b5-81db-544fd59df1b6","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":41,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"a7cae06d-c0fa-405b-912f-abf16378fcba","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":41,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"51b30194-9a0f-4078-93ac-fa4dbf101abc","block_type":"box","text":"Fund’s returns on securities lending.","page_number":41,"box":{"x":70,"y":408,"width":258,"height":11}},{"id":"4e6b50fc-2739-4244-8a7e-619989db7b02","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":41,"box":{"x":102,"y":430,"width":774,"height":11}},{"id":"af412eb2-3a4d-47fb-86db-39d5115da8e9","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":41,"box":{"x":69,"y":445,"width":790,"height":12}},{"id":"7b671f58-cc1c-4d79-9eb4-fae813c629ef","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":41,"box":{"x":68,"y":460,"width":809,"height":12}},{"id":"8b6cc5e0-96b0-46fb-a6ad-ab938f200c7d","block_type":"box","text":"Fund and BIM.","page_number":41,"box":{"x":70,"y":476,"width":100,"height":8}},{"id":"98cc42f4-60f9-4c81-a9ef-146ba820568b","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":41,"box":{"x":102,"y":498,"width":783,"height":11}},{"id":"d5cf50ab-9535-401b-987b-a8e18f300e05","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":41,"box":{"x":70,"y":513,"width":815,"height":12}},{"id":"8e6cec51-90a4-41dd-80fe-8605a7d0a87a","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":41,"box":{"x":69,"y":528,"width":463,"height":12}},{"id":"da2f6455-7bdb-4f56-8d28-ab14da67d489","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":41,"box":{"x":102,"y":551,"width":753,"height":11}},{"id":"a08f3f9e-a237-48fb-8da3-1ae68ac93dc8","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":41,"box":{"x":69,"y":566,"width":778,"height":11}},{"id":"7276a303-e74b-4dca-9224-9b0779b33101","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":41,"box":{"x":70,"y":581,"width":817,"height":12}},{"id":"1c345a52-5c5f-44b2-a07b-8f613e1f9696","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":41,"box":{"x":70,"y":596,"width":794,"height":12}},{"id":"96b47ec8-9b5b-48cf-9967-4f135c92fb32","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":41,"box":{"x":69,"y":612,"width":825,"height":11}},{"id":"2b8fc505-2fe3-44cc-b95c-7a2656d38d7d","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangements.","page_number":41,"box":{"x":102,"y":634,"width":691,"height":12}},{"id":"e527e7ba-703a-4584-b2fe-2ebc6fe66207","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended March 31, 2026, primarily","page_number":41,"box":{"x":101,"y":657,"width":754,"height":11}},{"id":"d4f4afcf-48cc-49d3-8bf7-ffdcacae882b","block_type":"box","text":"included the following:","page_number":41,"box":{"x":70,"y":672,"width":156,"height":11}},{"id":"1344920b-28bf-4e02-949d-8c56c6953ac2","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":41,"box":{"x":69,"y":692,"width":818,"height":11}},{"id":"6a8a1997-83c0-4fb6-aca9-89ff2fc0b327","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":41,"box":{"x":102,"y":707,"width":333,"height":11}},{"id":"c976bf6f-ccb3-4262-b130-dcc9602faae5","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":41,"box":{"x":69,"y":727,"width":538,"height":12}},{"id":"3bb7318d-006b-4bd6-893e-10b0b420a733","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":41,"box":{"x":69,"y":748,"width":330,"height":11}},{"id":"dec60374-c304-44f4-8a70-2170c4f25aab","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":41,"box":{"x":69,"y":768,"width":834,"height":11}},{"id":"f7740258-65c8-4975-897c-c33296e78b5c","block_type":"box","text":"of excess collateral, as necessary;","page_number":41,"box":{"x":102,"y":783,"width":246,"height":11}},{"id":"f5292b4e-db90-40a8-b488-470bf6fa1f1f","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":41,"box":{"x":69,"y":803,"width":562,"height":11}},{"id":"156004af-ce6d-4d8c-8bac-f0c1f14d3f5f","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":41,"box":{"x":69,"y":823,"width":665,"height":12}},{"id":"108a8a82-2aeb-4edb-9ada-ca4f0cf84e58","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":41,"box":{"x":69,"y":843,"width":822,"height":12}},{"id":"4ed77b1e-591e-4e5e-b1da-d1476c794da3","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":41,"box":{"x":101,"y":858,"width":803,"height":12}},{"id":"09872635-c0cc-4169-83d1-0082ac22388c","block_type":"box","text":"of the loaned securities; and","page_number":41,"box":{"x":102,"y":874,"width":203,"height":10}},{"id":"2527a0fe-884e-4e22-be78-21ecb8b1638c","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":41,"box":{"x":69,"y":894,"width":808,"height":11}},{"id":"95885c41-4e7f-4d72-b58a-dcd6405e66ec","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a0f3d31c-436c-4fe4-8783-45225ec64f7b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4fcc306e-f724-44a6-848f-d8451627e432","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":42,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"bbc6ec73-46d9-46b8-bd65-7faab1989db2","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended March 31, 2026.","page_number":42,"box":{"x":69,"y":60,"width":562,"height":11}},{"id":"bb310c39-fc89-4ba4-85cb-1960c2721251","block_type":"box","text":"Gross income from securities lending activities","page_number":42,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"975e428d-3ccb-4f3b-82a9-b7edecc3228c","block_type":"box","text":"..................................................","page_number":42,"box":{"x":414,"y":95,"width":401,"height":1}},{"id":"777541bc-ab0c-4af9-8b09-35ce158433fa","block_type":"box","text":"$587,341","page_number":42,"box":{"x":837,"y":87,"width":72,"height":11}},{"id":"1c71aaa1-f58d-415a-850b-a1057b94ba13","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":42,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"d0ef1b81-94df-4540-91df-6c0ac8a19053","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":42,"box":{"x":79,"y":122,"width":565,"height":11}},{"id":"6ec3fb7e-229f-4668-8f58-0dcae8498adc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 38,928","page_number":42,"box":{"x":650,"y":121,"width":259,"height":12}},{"id":"b2b29931-db99-4e00-ab93-e30c427a7ae2","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":42,"box":{"x":79,"y":137,"width":679,"height":12}},{"id":"cd88432a-2068-480a-8526-65e5ead72f47","block_type":"box","text":". . . . . . . $ 4,172","page_number":42,"box":{"x":765,"y":137,"width":144,"height":11}},{"id":"f22d073a-750d-44ff-b587-4d4406134bc9","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":42,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"e1407f4c-75b0-46b5-8ff6-4e95a2cb709a","block_type":"box","text":"........................... $ 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Financial Statements","page_number":43,"box":{"x":69,"y":544,"width":179,"height":9}},{"id":"b30e3a9c-346b-4ab1-9ee2-8402402b3cdc","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":43,"box":{"x":101,"y":567,"width":726,"height":11}},{"id":"a0336b46-9aff-4400-b893-21c6c23a276b","block_type":"box","text":"Statements and Additional Information for the fiscal year ended March 31, 2026, as filed with the SEC on Form N","page_number":43,"box":{"x":69,"y":582,"width":815,"height":11}},{"id":"8029b93b-506b-49e2-98c7-4c141f13389d","block_type":"box","text":"CSR (the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":43,"box":{"x":69,"y":597,"width":835,"height":11}},{"id":"2ffa2f21-1ae5-48f5-9e9a-fe7d22f34855","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":43,"box":{"x":68,"y":612,"width":833,"height":11}},{"id":"c361c489-cff2-47f5-a684-f070a328bf6c","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":43,"box":{"x":69,"y":627,"width":839,"height":11}},{"id":"14759558-82bc-4adc-8bff-5cc91741ca14","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":43,"box":{"x":68,"y":642,"width":790,"height":12}},{"id":"5a3aef57-5af7-4101-b1d5-b8106c792fdc","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":43,"box":{"x":69,"y":658,"width":815,"height":11}},{"id":"0703dbc4-60bf-4162-8ad1-bfac4ffe9290","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":43,"box":{"x":69,"y":673,"width":785,"height":11}},{"id":"47721b97-21ce-425b-aca6-da20690bca44","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":43,"box":{"x":69,"y":688,"width":836,"height":11}},{"id":"031d9e0e-fe2c-4fb2-8b95-f460e310b966","block_type":"box","text":"I-27","page_number":43,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"dabdef7b-da14-491a-82d3-aa40bee10f9e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6fcf1aad-a8be-4990-b8a9-f52828c5e045","block_type":"box","text":"PART II","page_number":44,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"96ba934c-bcab-46c5-a36d-eebc26116ddc","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":44,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"82247e39-b8f9-4bcd-a0de-9bc133e60225","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":44,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"cd65372d-cba2-4087-b046-92daf3ce9f4f","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":44,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"bd9ba022-8dbd-4f57-b7ea-20a0c7eba585","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":44,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"81756e4d-2dcc-4d78-8c51-51260e1f4317","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":44,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"d4859332-8347-4aa1-88e2-52dec225ad61","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":44,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"3a074e08-bc27-4c09-8ad9-e279d0a404b6","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":44,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"8f8b0da6-f528-49af-b966-1769d8c050c3","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":44,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"740522c5-df30-4847-b7d2-f82f3d986320","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":44,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"643c22cd-ea62-4aef-bedf-70dc6633d4ca","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":44,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"ec7e6548-d832-4796-8b53-d68f464a2119","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":44,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"897234da-d1b0-4726-bf1c-60ae88ba99c9","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":44,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"a5e516ea-a6bc-4d9e-9ae7-8fc5bc5f5067","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":44,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"7d3be579-fe86-40dd-96ba-b891d5a3cc27","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":44,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"a3d60f32-3070-43d4-932d-188854533b7a","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":44,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"704042d5-c701-489a-8cb5-3ac3978e09cf","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":44,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"62d1cf3e-da6e-4ab8-b17c-1cd60812ae55","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":44,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"cbf13ee2-0a47-4c8d-aeab-a16f7576f282","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":44,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"00fa151a-955b-4553-9cda-0b4775687e40","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":44,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"440b63ce-b5d6-4c78-9ae4-09e38b41ca96","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":44,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"ae807d17-52ff-498b-80d3-2acd42a34b8e","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":44,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"9e93d741-15cb-4b6b-9f29-df0eecd43b37","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":44,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"224db7d2-bb40-4907-9614-6c3d3c5b8dc6","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":44,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"81a05186-3b02-405a-8c6e-54027c128a32","block_type":"box","text":"par ticular Fund.","page_number":44,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"5634480f-6b9e-4ae8-983e-6a7c8f796c0b","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":44,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"15033840-b7b9-45ca-998c-a475373d8fb5","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":44,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"1b0634f3-dd70-4ab2-bdf3-985889b4e739","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":44,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"095e8042-544d-4808-8d1f-5bcaecbf890b","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":44,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"54ecbd28-9567-4bcd-95e1-7222be58b411","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":44,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"d129388a-749a-4431-89e6-8e86508ab679","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":44,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"5934a05b-79e6-4306-9c64-708dc66430fe","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":44,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"88984484-6e22-4292-9046-b46de6a91e58","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":44,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"506d82db-e56a-4d7d-8cd9-7a6ea8c08cba","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":44,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"d22992d4-eac2-4ba2-b56b-06655bc5b60c","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":44,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"b1254a84-393f-427b-a984-2b67de99db33","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":44,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"f36406bf-f967-4b50-9566-d496a25e7795","block_type":"box","text":"Asset-Backed Securities.","page_number":44,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"8aab78ea-3245-456d-adc1-0be22eb62cf4","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":44,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"f0672767-73b3-4483-89c4-b2d81f968e9d","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":44,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"b93d6222-98ed-48ae-9256-4107574d6cd1","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":44,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"ce74ef5d-1a18-4f9f-8dbb-a08d91660575","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":44,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"c6b0c189-0305-4bd3-becb-98108289aa38","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":44,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"6d824440-88de-4977-86eb-7976cdb9bf77","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":44,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"0e38a0f3-fef4-481a-b67a-a0c94d93e32c","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":44,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"3dfbd626-81fd-4239-8b9a-024354c6d252","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":44,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"3bea3ad4-3d2e-4cb1-a34a-30b488d52ae2","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":44,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"20cda4c9-71e1-4f41-90d7-4f649df82551","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":44,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"d424af7c-662f-4a72-8cfa-d00aeef34152","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":44,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"bede769f-59c3-41b5-a1c6-94ca931980a3","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":44,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"85f7c2cf-f89b-4bda-b9c3-6dd807ef2e7d","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":44,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"4b1b5272-b016-4e58-8ec6-0482c3090849","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":44,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"9a688661-8596-48fc-b5d0-4d5c228e8b70","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":44,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"a469768f-78a7-4bf9-aa47-506a39abda14","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":44,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"b96838e6-29e1-47d3-a822-6d0ddbc52c08","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":44,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"b1f1306d-d423-47e0-9610-800a1f47d483","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":44,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"8e4af01c-92d9-46bb-8a73-cd958cd114f4","block_type":"box","text":"II-1","page_number":44,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"000336bf-063e-4b20-a03d-b7a9d4ed6ef7","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15432961-4d07-46cc-8c42-a408f7895a31","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":45,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"b082cf47-810d-48d6-a273-c4ce2c880252","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":45,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"a4a8fdfe-2d65-4156-ab21-45e2e127dbad","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":45,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"63fbf6a8-9a54-4933-9019-4644e27fdb40","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":45,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"f3ffd5be-f6f1-4d2e-8e06-b98533b3800a","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":45,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"a6aea46d-5ef9-4e54-b8fa-771031fa27b6","block_type":"box","text":"Asset-Based Securities.","page_number":45,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"986083b8-cb44-436b-8ff8-b1f4c700ae71","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":45,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"9cf6e103-57ea-45dd-b97f-7e878853e607","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"7431d334-c2ee-492d-b1b7-a1ae43bfbf7a","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":45,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"ed864562-f618-4b12-b48f-6f98e8c3ec37","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":45,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"f1b0d398-4208-456b-b402-4d6141390577","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":45,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"45e08cd6-6f9b-40e5-9f6f-96ac6a68b1aa","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":45,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"96fdcfdc-0634-455f-9d17-88646e0318c7","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":45,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"d70947de-30d9-4558-8d80-db2d5ac7d405","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":45,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"72c01426-01b9-4ee1-af0c-3a4d4550a276","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":45,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"90eb8f55-fc46-4675-86fc-98f93a62fccc","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":45,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"28f0b425-93a1-4ba1-a898-742afa54b5b7","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":45,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"ddfea787-dc46-4e48-81d6-0c478f32fe66","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":45,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"ee798c01-7448-4be3-9a96-10a8d6ef2c51","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":45,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"def4b2a0-edc7-48fb-8b3b-0421f63c4c20","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":45,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"2227df73-67ac-4c88-b816-1e43b8ee3256","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":45,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"58f5eceb-c971-4407-9fd6-a32b5b47e880","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":45,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"ab23098d-7faf-461d-915f-ee5aa326a3c4","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":45,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"3ef92252-2883-404f-aaea-610c99554c4c","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":45,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"359fa219-2e00-48bd-ad85-e69d05c243d2","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":45,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"d768b7a3-0dfe-4953-b6df-8bee5c6b1e55","block_type":"box","text":"appreciation in the underlying asset.","page_number":45,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"84969719-931f-4c9d-851f-b5ee23057823","block_type":"box","text":"Precious Metal-Related Securities.","page_number":45,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"795753e0-1d17-46b3-bbf6-188c9c1b338e","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":45,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"b57d44c2-8831-40cb-b6c1-ef12fb9aca72","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":45,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"a5075b94-508d-4859-80fb-784a456cfd6d","block_type":"box","text":"e.g.","page_number":45,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"08491c0f-bf7f-4e3e-9862-f4fcc82f6aa8","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":45,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"8007801f-bdac-4fd7-9098-b3b385f149b2","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":45,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"64503ddd-dda3-479e-8d3a-6bde11b6cd95","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":45,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"003b411b-1adb-41df-9e09-69b13cfb566e","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":45,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"c219204f-1f7c-459c-8608-847394bb819f","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":45,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"299a0768-855b-4839-aaae-ed5976deacf8","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":45,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"0d4206f0-7806-42c6-ab69-ea295b1b0d5a","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":45,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"577430c0-9ca4-43e2-94eb-d39334a7c71d","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":45,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"a0d39eea-7668-4175-b291-2dd1dedc86df","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":45,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"6fde2e38-6e4d-4ec7-b800-9c1e805af9b6","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":45,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"ec73bd61-940a-4ef5-b674-f3c3e0d46f3d","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":45,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"780c1bd4-ac53-40c8-bb4a-4cb8b929b3a1","block_type":"box","text":"South African gold production.","page_number":45,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"2b2b1a9d-7c4f-4a43-b05c-d8d0defca075","block_type":"box","text":"Borrowing and Leverage.","page_number":45,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"da30a973-5a93-47a2-a0ab-5476233859bd","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":45,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"7ab46b2a-d196-47f1-b224-d6b77a969895","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":45,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"44d99979-d28f-42b2-9e01-2d6f95c1d669","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":45,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"512babb6-6b56-4900-b678-b25c341ee1e7","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":45,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"eb026ae1-0644-48de-a3e6-961b45c59722","block_type":"box","text":"other securities transactions.","page_number":45,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"e417147f-3952-4363-99f2-4bee8b54210e","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":45,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"88f67c8d-e227-498d-a500-df21d44f54c5","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":45,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"89d89cc7-0068-4944-9ab6-56844bd2f1cf","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":45,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"5e856ba6-cdba-47ac-a4d8-89fa023526b8","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":45,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"dbb0ddb1-bcdf-4217-a3a3-2215751e0cd7","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":45,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"83b58c59-c3e6-4d71-b728-fc7a4e99967d","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":45,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"4fdafe1f-b2c9-4977-bf8a-d39d0fd6d5c5","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":45,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"f7ecf5ba-8fd7-40ab-ab99-c737b003c766","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":45,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"402f9e10-c3c9-4ee1-9332-9d788f845aaf","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":45,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"9c146601-ce08-4999-a734-c33a0e4d45cd","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":45,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"f57c65df-9f37-4d3b-8f05-616b91820953","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":45,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"fdf98f4f-d069-4106-81eb-dc1be50393bf","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":45,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"76c9bb2b-a9fa-48c1-a534-6c7359361c14","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":45,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"9f41e886-378c-4dd6-a9e7-3bee8dd087f3","block_type":"box","text":"II-2","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"922d1e29-f64d-4de4-969a-7c6c0da15b24","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9b25e89-db4e-4b66-b431-2ca9c04ae5be","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":46,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"93a43216-90b3-4bdd-84b6-d572b71c47de","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":46,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"fb82305b-5df2-41e4-b60e-cf0d8a3df1ad","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":46,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"82147223-e29f-422c-8c60-a1e0feb33be7","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":46,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"ef5b8384-0f7b-4a23-8563-f8e70580b008","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":46,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"8de9299b-d0a4-4f38-bcc3-5efb9a87c487","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":46,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"2806f2fd-1533-40ef-a378-c6241fe0999d","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":46,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"defeda76-e1a6-4fcd-a1b0-74e16bfc3602","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":46,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"dc8395d6-95ef-4283-bc97-c817bbf0dbc5","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":46,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"1f9afd41-2c4c-4352-a47c-c0bd9b677705","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":46,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"b56c7ad6-4b11-40a4-ae8b-88db9ca98c43","block_type":"box","text":"Cash Management.","page_number":46,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"2c259a07-aedc-4a56-a93d-3f874c4004db","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":46,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"d2fb8fdb-430e-4c95-9627-7d745611dc3c","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"4ea8a960-0ad2-4cfb-998c-eef07ee1a500","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":46,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"57226248-7679-4862-a8d7-26b7d5ef5432","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":46,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"3309c502-9bfb-4bbd-b828-07997f59ec02","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":46,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"fe5bff52-b37f-4c25-b5b4-ff3b4d1a6967","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":46,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"42246d4d-9925-4b92-8e6e-93844d46d221","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":46,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"87f44c59-b97a-4bbd-ad60-6e39560f8132","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":46,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"084cf846-c584-4416-aebb-6dd1993de813","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":46,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"9aaa4466-6fe2-4c8b-a0c1-b55bd7fa2a65","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":46,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"19d6b77b-a7bd-4898-819e-34e202ef9516","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":46,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"77b86068-364d-487e-aa6c-b6aaa58aefcf","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":46,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"d2788d20-8b40-4fa8-b52e-32c8535167b1","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":46,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"8fa98ad1-0d84-4f25-bd11-1280aeede07f","block_type":"box","text":"Collateralized Debt Obligations.","page_number":46,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"571674a3-9829-4afd-a339-3a10102eeac2","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":46,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"87c0c20a-62b5-4113-a585-6ae7c92eba01","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":46,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"537dfc3f-b351-4f71-8812-b18b79debf68","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":46,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"d69052dc-8123-4a99-a43b-68dff5c5895e","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":46,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"e3611bf6-c019-4852-8821-5da004fedbed","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":46,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"9ca69f3e-d826-4997-8951-8d0e8df5e903","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":46,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"51244a03-ade8-45e9-a7a5-69412edc7e0d","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":46,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"aac3f116-bc58-4ee9-a0e2-4db689f3a213","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":46,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"179a61aa-7c16-44d2-bf5c-cdf3eca0125e","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":46,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"2b1a289b-6173-48c4-b3cd-3a36980b3e5b","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":46,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"2257e666-51ce-4caa-ad72-1abcff3d64e9","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":46,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"f8ced4da-8a44-404e-91e3-8845c40027c0","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":46,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"636b57fa-9cf6-4501-b189-7773fafe7aa2","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":46,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"3791d417-9dd3-4962-b196-7bc09b71674e","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":46,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"6a01be0b-21ab-4358-991d-51c405bc2caa","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":46,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"7cb84ca5-d9b8-418c-9abe-90914a511a00","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":46,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"2892c8d8-d087-4c32-9862-36ebbb692e2d","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":46,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"bcb67260-1fb8-4fa2-b79c-d382a5b6f1cc","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":46,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"6b49f2e1-9b26-4cf5-915e-6ac3acbbd547","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":46,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"62c54da2-a3b0-49d5-bee4-8d4ea4d868f7","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":46,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"c80c28de-f7d3-4901-8efa-1a8ae38ba8bb","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":46,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"f187021e-1ebb-4e5d-8dd6-02059c092214","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":46,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"41e5b8a7-8ee4-4756-8425-997e0ee740bc","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":46,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"53c4b263-5270-4adf-9da8-1da50464e89d","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":46,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"b5196b5d-3b38-4096-8b1b-c7ca79ac4b30","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":46,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"1bac2cff-178b-4694-b7f4-a12e4977b4f2","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":46,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"2ee92d2d-fa47-42fa-bc0f-33110652c2a0","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":46,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"c6dbce2a-fc1a-4646-be40-7a220c39d0a9","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":46,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"e34417a3-da62-439f-a5b4-1dda452bccdf","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":46,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"59e34aa5-51ea-4062-bea4-e4c57c4e2047","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":46,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"6eed24ef-37d2-4191-9171-2c0034852885","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":46,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"01934474-35a7-4776-908d-34ea48a4a754","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":46,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"a67b101e-ad97-4b8a-b05b-795d5d5ccd6e","block_type":"box","text":"II-3","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a2de5c6f-cd53-4ba0-ab03-27f4eb7b1e19","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d3028a3-ee50-4d35-b09a-7543ce84cd6b","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":47,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"90816ae4-6345-4141-9230-768516a9e723","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":47,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"1fd68f74-fddb-4608-8faa-0f9b71a54b15","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":47,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"1e47de61-0b42-4c65-a294-f3054c14f9ac","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":47,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"b59f561f-06d8-4e7f-ba2c-2f5e50035240","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":47,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"d9072fd6-6842-40cc-aaa3-722bc7d58c8b","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":47,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"dfd26f73-2be2-421f-8766-660b4505539f","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":47,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"8a490e67-33dc-4625-8fc9-1a58f9b42a22","block_type":"box","text":"Commercial Paper.","page_number":47,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"9264d4c5-4349-4301-8896-9a19ce7374a0","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":47,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"f1444960-3b18-40b5-bed9-bf2e51c042a6","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":47,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"087fc2e3-f8fc-42eb-9791-994156b3170d","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":47,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"ba65ac1e-28d4-4987-9dd7-5a8497fd647b","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":47,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"2691067a-b821-4d76-b677-81018aa327f8","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":47,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"58b0ad1d-72d5-427b-8a24-f262961f1279","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":47,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"b09302d2-5653-499b-9838-35546172d276","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":47,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"f2e2d12d-2fdf-4eca-8bbf-df012d977314","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":47,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"e5edda5a-fc53-457a-95d1-4f1ef9594078","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":47,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"3e8ae8ec-a58e-495a-b190-a847dbeca6f8","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":47,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"d25bad0d-0674-40c2-b29a-8fe93a757dad","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":47,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"a3f4c9a5-b72a-4c14-8567-d73fda62f3d7","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":47,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"042271ce-ab89-48a8-92e5-267b677bdb9e","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":47,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"6aaa07a0-d5c3-48a8-818a-4e3b8cb9b77a","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":47,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"f3200f53-b99e-4228-a065-08e696924a1f","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":47,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"689f981e-9b2e-41db-9403-3d6b67be05f8","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":47,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"6b17b186-000b-4121-a374-0fee53154dbd","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":47,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"d158c3c4-ec94-4cbb-bd42-e85050bd6810","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":47,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"b5d6e606-2b3d-4d1b-b5fb-ebaa52a88ad5","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":47,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"7e96d32c-40eb-4357-91f8-b8d9ad11d2a5","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":47,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"2be0b6fe-cdcc-4d28-8d2b-e642be5a54e5","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":47,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"30c19616-eb50-4f55-a0dd-a0b07b256e2f","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":47,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"30144f47-6d79-41b3-bd01-cb6810b5ed52","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":47,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"6b1265da-31f7-4a21-9191-6acf3c309b68","block_type":"box","text":"variable.","page_number":47,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"ff6241b5-85e6-44a2-a815-e36a8039d902","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":47,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"dad71bf8-6613-4832-91ce-fd57f86fc2e7","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":47,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"4b9d2d86-f448-408c-8c23-b121d8311eae","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":47,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"751a33b4-91ed-4f0f-b6e8-d03903f22431","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":47,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"27cae687-0ca8-443d-8bcc-2f61de8654a7","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":47,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b2480307-ff03-4d82-8c46-8275122a9cd6","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":47,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"f0145fb4-e496-47e5-9581-62f553bea09f","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":47,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"f6a6749e-e34a-4815-8397-ccdcef9c608e","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":47,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"734756e8-53be-4b51-a145-df1ad7dcbec7","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":47,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"7cfb57d2-08a0-46ff-aaa5-e1c92304a617","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":47,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"bb9a42e7-67ef-4f7e-bc04-1a6a9b20b4b7","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":47,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"10ceba07-bf2f-4563-9ede-1dc9e7ae709f","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":47,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"fe2459c7-c73f-4133-a88f-a364d3888142","block_type":"box","text":"correlation with stocks and bonds.","page_number":47,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"65b504e1-ca22-4d11-9ba3-226f984714b9","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":47,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"ce88e2c2-bed7-448f-bde7-241e8ffae99e","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":47,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"1c0b1e69-1d9d-4609-a138-45dbb667bb50","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":47,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"d42b126f-8db6-4d74-8a0f-e9cb5da23360","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":47,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"6ec93ca8-6e6f-4754-b0ce-26dc4a3ced91","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":47,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"6b6de60a-c7a4-4a5a-95c5-85efdba9c44e","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":47,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"a380d081-4c5f-497d-a114-e35e772f87a5","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":47,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"b6784acc-462a-4d54-aa19-d32feadf49f7","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":47,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"b35b5430-9e5f-4b5c-88d4-63bc8b7823e5","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":47,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"a2e8a60c-dc1e-48a0-b3cf-8936cdf53470","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":47,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"2a905d7a-7c81-4a46-9c03-a4e6005ccb3f","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":47,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"2c26b569-1ce6-40bd-8712-557c270c276c","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":47,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"70fa227d-1edd-40da-8685-71436b421248","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":47,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"b63cb635-e780-44b5-8256-a27e78782190","block_type":"box","text":"II-4","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"94aa8cef-bb2f-4b0e-9466-f55b00f9c23b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ddf3805d-8381-4754-b61d-7bca4c2da209","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":48,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b491e816-9a0e-432b-813c-c66df0724b88","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":48,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"0477e999-bc7d-47ae-8dbb-6b57ece53bef","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":48,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"121599ef-ac24-4804-b5ce-69ad0ecf1904","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":48,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"c4e67649-8286-45ef-9e09-685a81df1af5","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":48,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"c3c68eef-c610-4a59-a1ab-3319567951c0","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":48,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"b72f6dba-20bc-4aff-b271-ce6e41ae1867","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":48,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"ce535227-1c6d-4998-9dc6-f81d1faad3ad","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":48,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"7659fbc1-44a2-4fdc-bb15-c9677b6296e9","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":48,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"a47613e6-5e01-4dfe-b6eb-5641063e18cf","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":48,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"53b44403-5d64-4c7f-860e-b2db189b60e9","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":48,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"3476ac05-4476-418c-9a9d-679dd46d2a9c","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":48,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"918f8335-b9cd-40b7-98a9-e2b4e98ced3b","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":48,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"db2b98a5-a5fa-4121-8921-de960d2a3632","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":48,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"269e66a4-e4c6-4c48-a3e1-fe12c22b55c2","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":48,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"b487501c-1567-48ac-aeda-dc458b108a0f","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":48,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"ad1b2c9b-283d-45ad-986b-97ea7fc47028","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":48,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"7a07e7b7-af8c-4776-9663-a636bf6b7eaa","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":48,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"726cbc09-203c-4836-aff7-cfbe7e579d03","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":48,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"e1a0769c-668c-4a6e-a3ad-f883f6b582d6","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":48,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"8ae32958-99bb-480c-b71d-9ee59a5544be","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":48,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"63012ca8-c5da-4c2f-bc98-502781220a73","block_type":"box","text":"the Manager believes are relevant.","page_number":48,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"5de68aab-2250-4357-a071-a974bbef0327","block_type":"box","text":"Limitations on Leverage.","page_number":48,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"3b2d98c9-5b7c-4b96-a447-fa66f46ebc41","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":48,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"fe2601b5-7c73-4643-a56f-925e3c47ff6e","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":48,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"3f5e57f9-b17b-4daa-850e-3dfc5803c06b","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":48,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"6b021147-5b1b-4926-aa93-1c0227552263","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":48,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"0e063049-5ba3-4e99-ab70-570a8e0a391e","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":48,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"f7f88ead-9cef-4992-b59e-f682e8b68856","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":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"db4164e1-3287-470a-8418-928eaca9fab5","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":48,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"fcd8b217-dc0b-47f2-ac9e-b1746efabe0d","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":48,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"bca6a9f8-d983-4005-bd4e-4d646b9fb788","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":48,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"604ad37b-a17d-44d7-a4e0-e241901e61d8","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":48,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"683f7b79-f9da-460b-9030-64579098e41a","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":48,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"f1c5e4a5-2956-4ca4-b4ba-6a0782fb951b","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":48,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"85c11b0b-e7d2-4c88-b403-50c976a64b4e","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":48,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"99996972-8fa6-4ae3-b64d-e3d60ff90ee5","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":48,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"4e9b68b8-ecde-4cc5-8d37-39745dcd19ed","block_type":"box","text":"Counterpar ty Risk.","page_number":48,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"ae5d4d48-a0b6-416c-b073-6c7219309cb6","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":48,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"651a3968-6c98-4a88-8787-3d8c31550ad0","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":48,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"632549cf-003a-4a39-b60a-ba9c3e553b31","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":48,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"1884102d-dd6e-4fb1-b55b-e3a45ed723eb","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":48,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"bbb639ac-c988-46fa-99db-5bf718608bb3","block_type":"box","text":"e.g.","page_number":48,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"5e58d0ef-d744-4604-a22c-3bf101e5efae","block_type":"box","text":",","page_number":48,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"9540fab6-87cc-4f0a-a0ac-0aa432ad64f0","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":48,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"21d396c5-cd9c-41a7-a306-4b1145ba7ef2","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":48,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"1216986b-0cb1-4bd2-b740-998af881490c","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":48,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"ebf32110-6fd9-4a86-839f-839a47b8f221","block_type":"box","text":"obligations under the structured note.","page_number":48,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"c0d44a3e-6423-4842-9694-4ff8ce915337","block_type":"box","text":"Convertible Securities.","page_number":48,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"ee70c599-e15f-459f-824e-a288069762bc","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":48,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"0826b234-c960-48a2-9cda-959655118bb9","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":48,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"e88943c1-1d76-4ab4-a3ce-be68fcbc577b","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":48,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"ee926fd8-e694-4a41-8c33-753b323aa2f8","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":48,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"c095bb88-e291-493a-bf83-e7c9484c9a2b","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":48,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"c6d4a70f-b307-4550-baa5-f7cfebf90c97","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":48,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"cbddeb3b-fca4-469b-83c8-dd302bfe6748","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":48,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"eb359ef0-1a35-4db1-b076-7710b31cc7d7","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":48,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"6267e19d-a503-4727-a7a8-2d2d370c0b19","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":48,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"a811fcac-b793-4d57-8f56-146270729099","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":48,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"4316dc9f-efa8-4f66-b025-3769a0e27330","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":48,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"7e30ccf9-95e6-4c5c-b192-dcaf7330af34","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":48,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"86bd46db-972d-4ab7-ba6a-2679437f806f","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":48,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"13f53d17-ddc1-43de-bb57-0af61c172936","block_type":"box","text":"II-5","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ebe22a25-20c2-4a17-a36b-5090216a33d3","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87db0136-a0aa-4145-9c9c-9160c26865b8","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":49,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"fc1eafd8-2c6f-4c09-b83d-923960b4c795","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":49,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"b2e99cda-f4b6-4382-98b9-f6380574b985","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":49,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"6dce75f9-5112-4bea-9855-e02d5654d18f","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":49,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"06b76a36-8cfb-47ec-9fdb-ce701bcad559","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":49,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"e5ed43c8-2ee4-46b0-bc3f-566ae54b9eff","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":49,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"c0e61175-e317-4e5e-9cc8-a757cab95ffe","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":49,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"918d2534-a125-4986-9cfa-ee0920026495","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":49,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"6e80b0e9-0f1e-485c-9e9c-9c0156ee7ba6","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":49,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"a0e6b22a-155a-4268-8372-30188c7bbc1a","block_type":"box","text":"things.","page_number":49,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"f3f6ac79-104b-44f5-827e-621290da0b2b","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":49,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"5dd7e5d4-f172-49d2-bf81-e5f9bb5ec8fb","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":49,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"b6fd43ba-e6fb-464d-81c8-fee217f61b20","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":49,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"d38b374b-2555-4ffb-a856-338aa9c05702","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":49,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"2cba7479-f3b9-4741-8747-e6565c8e2be8","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":49,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"06c82def-ff9e-4c77-beda-a65e1204a8b8","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":49,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"b3ac39f8-b094-4de9-b06a-89c362726b91","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":49,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"cf5daf58-acf9-4912-97a8-5e871491d302","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":49,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"f49fbd6e-77bf-4b2d-ba20-b7b684f98d36","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":49,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"5ac2fd5f-8804-4280-9536-50665994ad47","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":49,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"78efa40c-7ee3-405b-93ae-cf130df6d965","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":49,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"9e07b952-ac9e-4fe3-a915-77d3be4f22ef","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":49,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"879957b2-7696-4bfa-9d73-dcb632d98fe4","block_type":"box","text":"i.e.","page_number":49,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"39b53301-b9e2-48b3-bfc6-802324bd82db","block_type":"box","text":", strictly on the basis of its yield) is","page_number":49,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"4263f15d-526b-486a-9480-11f6cd774c35","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":49,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"84e20728-8007-4795-9570-2c8539325323","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":49,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"a0e3b124-8eec-4a54-b95a-e936ef765b5d","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":49,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"fc642db6-e690-486c-8493-65f68f8ef572","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":49,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"d35d0db6-0238-4acb-980a-e7baf5581cc3","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":49,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"5605be47-092c-4a57-be5f-493b5cc85f86","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":49,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"087d174c-2853-4780-b525-a2ad56e0de0a","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":49,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"8afecfed-e721-43c0-a7d0-0ce841e7dfd5","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":49,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"08679df3-a5b7-4f0f-be21-b64d06a203ff","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":49,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"f70e54db-0b77-4af1-bbfc-414d5fab9b35","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":49,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"0e1c1550-b1ce-4195-803d-2d190089c5df","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":49,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"4b12dc2c-ddb7-4928-92ec-2f29cc5b8063","block_type":"box","text":"than the securities’ investment value.","page_number":49,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"a3575dcd-1603-4239-bc0b-dc0fb12f2ff9","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":49,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"441bf7e7-a0ea-4c14-9e80-54c1fe3a784b","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":49,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"dc674fcc-97a2-4594-a36c-3ad706940101","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":49,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"39e910f0-dd6e-4cbe-bbe4-d9a03ba64ba3","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":49,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"e6bd0e2a-a716-45bb-9b9a-379454ae15c8","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":49,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"6b1ea8c3-7e55-425d-b757-3a05f5854fa5","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":49,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"6c180228-283b-44d4-9ad0-556143935939","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":49,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"754ab74f-3c0b-480f-b654-92efed4d19c6","block_type":"box","text":"security under cer tain circumstances.","page_number":49,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"3388487d-a5f4-4cc6-b6e0-5e680a19cd4a","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":49,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"b2bd8a4f-3c49-477b-9bf6-1df51279ef42","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":49,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"95479920-8b0f-4e8b-8a89-b4c84cfe4886","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":49,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"3dff783d-3a98-453b-83fd-3ebbb61e4222","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":49,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"4416418b-ddd9-41a2-ba0e-582186fd1c71","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":49,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"4835b14f-944d-4bed-8d38-a4df7b8c5280","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":49,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"d1649039-e371-48df-a129-b62ab7ec62b4","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":49,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a7314ad9-9164-47c7-85c5-21198aa540b9","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":49,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"3ff3ac67-b6eb-4322-a197-348a26886341","block_type":"box","text":"i.e.","page_number":49,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"f2e2490f-e5ab-4c29-8113-66963884f804","block_type":"box","text":", fixed-income (“fixed","page_number":49,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"e3c460bd-a8e7-4929-856a-9e03199c9fd9","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":49,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"24c14140-7c0a-49ab-88bd-1e50c209cc7a","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":49,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"3bb1580e-d7ff-4731-9acc-00f8022a786e","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":49,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"4c334409-db2f-4f1a-a919-abcdb4060ad6","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":49,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"0e799a80-0f98-40fb-afa4-400097e036a8","block_type":"box","text":"II-6","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"21280cc0-f2d8-4acf-83eb-8e8c7eea7c0a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47aa5bf3-652a-4c52-aaf0-d66ce98cdb26","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":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"677c8828-3693-429e-9a51-2a97efbdc25e","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":50,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"fb157999-cdce-4c8b-b694-a2301e152e72","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":50,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"4690139f-a346-4772-86d0-eb6d5a9e03b7","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":50,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"4aa1c1d7-0351-41b8-840f-2b3da4e0c8c8","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":50,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"9b0db13e-085a-4762-97ce-d3ec87ce50f9","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":50,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"719c2e58-5088-487d-8524-16acb1aea124","block_type":"box","text":"component.","page_number":50,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"0de48709-61d5-4660-95b1-8f184276868e","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":50,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"4cda1d63-b19c-4681-b16c-dfda69c03ba9","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":50,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"288af9ef-d5e9-4add-ae93-a6ede9c22ce7","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":50,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"b6b6cd02-e608-4c4c-ba0b-7755a5f22743","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":50,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"9552dd34-f946-4f57-bc61-025813dfd40b","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":50,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"1654c52a-2b1c-417a-9731-dde83fec124b","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":50,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"84876d4d-52db-40c9-82e3-f0defb3c26f4","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":50,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"980f7fa6-6a7b-4a4f-a7a5-c1cbee6a456c","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":50,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"d7eae97d-d815-4348-9fda-eaa5e202e3ad","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":50,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"5347c1ee-f6ce-415b-a5c4-48ba899583e2","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":50,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"384c295d-ca7e-445e-ba81-9b0ed06af3cb","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":50,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"463f696c-7c89-46a6-b103-54b086f35b74","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":50,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"436202a4-21c5-42d2-93ce-6059273b4890","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":50,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"b4ac62cd-5d04-45d7-9479-db01180f0233","block_type":"box","text":"favorable market conditions.","page_number":50,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"fa8755f3-5c93-4522-87b8-79f9899af79e","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":50,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"871ec57b-e092-4c6b-bd62-4164a548e34e","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":50,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"8208b3bf-b677-417a-89ae-c8b0e2eb7647","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":50,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"dc9f5bfb-470f-4941-996c-282526697ba3","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":50,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"9e9359b6-6d1d-43f7-8b60-50a64397698b","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":50,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"b1e6235d-4357-4446-9edd-cc1f4e3679b6","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":50,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"39da2165-df82-49b6-8be4-a9615a25a6ee","block_type":"box","text":"Corporate Loans.","page_number":50,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"24ed232a-32e8-4366-988c-7e58bc320562","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":50,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"6d9d016a-1fb1-44bb-9fcb-dbd08e0a7ec4","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":50,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"4f15acb0-244d-4aa7-8c19-0d7bd3a29b1b","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":50,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"dce65f77-f28f-4310-a6a7-11bb547dc22e","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":50,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"e3d9592f-b518-4269-9253-09593d5dc8e1","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":50,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"c004e7c3-5078-4016-93a1-b957cbe64cb7","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":50,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"405c666e-2149-4427-833f-2a989d1d0707","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":50,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"92a6ac5b-145f-4ad6-a920-62f9ca6fcf73","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":50,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"44388a18-ecb8-42ad-9c23-bdfa381af7dd","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":50,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"e1c212e6-ae7d-4f4f-84c0-4a642756c7d3","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":50,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"c9d67b74-6280-4871-9a9e-4428cd75cdd5","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":50,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"2f76a4e6-39f9-4435-bdb4-89137e1dde14","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":50,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"571c5022-a930-4379-b955-aa7f8cd4fdf4","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":50,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"c6788af3-443d-4611-8691-96ee5c97aca9","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":50,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"71d0d98d-5f9d-4848-8a6c-4a2282a4d5fc","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":50,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"d04de083-4785-4bda-b67c-a82fd419f9e2","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":50,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"e9ddc138-1a55-46b0-906c-7beef2dd606b","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":50,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"89c9602e-46d1-4b51-8e09-5105de2257e1","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":50,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"ca22740f-ed68-4469-a23c-1e372f833d2c","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":50,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"464bcda7-01ea-4a26-bfa3-4a4f17f2639b","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":50,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"fa80c06d-37ca-49cf-b2af-f55cd5b12aa8","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":50,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"c33a2ba0-021b-4c15-bd00-db714a905265","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":50,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"1e1903d4-b7d6-4d10-9b80-6fb793f5c02a","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":50,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"583c6ba0-9a57-4759-ab86-bd8c75a6cf24","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":50,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"78b67035-37ab-4701-af1e-e00d94c769ed","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":50,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"cf9772e2-181a-4c32-b4da-2aeded6d2222","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":50,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"59049d53-9cc0-4c59-a416-903d067fc386","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":50,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"ef3b1395-fcb5-4792-bbf8-db698cb33a3e","block_type":"box","text":"of the borrower.","page_number":50,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"0d4eb504-a80c-4074-86aa-eede6457a40f","block_type":"box","text":"II-7","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9b11ce2f-dbbf-47e8-8903-8b4a877e3679","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14b0af30-f35f-4939-bd14-929850ee575e","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":51,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"6afc6d20-5a3b-4983-98d2-ea042d4b02f0","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":51,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"91a4f356-b43f-4b3c-9868-640f57cb74fb","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":51,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"58697cce-7d1a-4f63-b14f-041b60d193d8","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":51,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"ff99fb4b-b197-463f-adeb-01337c6aeb49","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":51,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"008cf4f2-244c-4fb0-a02b-1fc7e67a2b63","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":51,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"ec1c2a47-b091-4fd0-a6d3-578b95a4c698","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":51,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"29bb9007-7f56-4198-8f9d-f546eb959d00","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":51,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"b98d8679-9726-4a96-9aa1-566053bec735","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":51,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"26885933-d811-44c8-9768-70eb3f626bab","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":51,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"280c374e-7056-4e39-9710-e5903fbc2756","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":51,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"ddf64105-58d8-42db-90e8-20f5a18f3c95","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":51,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"fb73b697-0dd2-46a9-88df-9496e8723866","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":51,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"284e4cd0-6067-4da3-9ab5-5473eef1c7a4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":51,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"b6b273f7-a373-41e5-9559-5ec2e203cd21","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":51,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"c1dac300-5e7e-4a7b-86ac-5d42852f4ed3","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":51,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"bd5eb3c9-cdaf-46d6-a97d-b16133af7c90","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":51,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"f9bd13c0-0e64-4ddf-8a5c-29c7cdda5d1f","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":51,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"7feb7df4-d42e-4be9-9f51-fb876eab98a5","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":51,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"17339399-fa66-4d4c-b7cd-eba558cfd680","block_type":"box","text":"state law.","page_number":51,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"69b9780a-a3a0-4cbe-8bad-4e1fd1f2f820","block_type":"box","text":"Direct Lending.","page_number":51,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"5725ef50-6d20-4273-9965-b0cf4c26ae7e","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":51,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"6ebc4a10-9325-46c4-b6e3-471323b3d325","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":51,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"dde9101f-da08-4c91-ae43-ad9bbaa4374a","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":51,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"3b50965a-50c1-479e-9841-17a3f965938c","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":51,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"4d2a3b65-5995-4fa3-b955-43d3321496e5","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":51,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"857cd063-3e62-4947-9a72-81610089353d","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":51,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"a0fe3b46-0d24-4a12-a19a-80ac868c825e","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":51,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"2d650957-48ad-48ff-9e7d-208502dfbc9a","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":51,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"a073b2f1-7ea7-44bc-ae0b-8bbd417d2d22","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":51,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"46cd2c1a-6ca0-45f9-a8db-51cb1008fca1","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":51,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"c0afcbf9-bc33-48a4-9dcb-46b2c587b3ee","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":51,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"12b929e1-0677-4fdf-8881-ada35aea6a3e","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":51,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"5bf1506b-183b-4eb9-9329-387bfa0502ba","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":51,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"a9cfe89f-9fd7-4ab3-be5c-a212d2e66263","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":51,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"83bbe306-3570-4525-a325-5142b56fc54e","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":51,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"4deb89b1-9ad3-44f1-974c-96599921354d","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":51,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"359086dd-3d08-48de-9cb2-74368e50a2ec","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":51,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"a31c7430-7bc4-442d-bdab-6a0cc4f2b480","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":51,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"a0e51faa-033d-46d0-a51b-344a3f30c4da","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":51,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"45b74a33-f782-4bba-8c59-65482ba3117d","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":51,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"383a49b2-0521-4dab-b569-013f652cf59d","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":51,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"fde30df2-6c25-42eb-8930-4360304e52d1","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":51,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"c1aaa5d6-d63c-4372-8384-6422c0caf3a2","block_type":"box","text":"Credit Linked Securities.","page_number":51,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"dee31ab5-a320-4eac-9e06-fd5ccd78210c","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":51,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"6da9d785-eb9e-4a18-95a4-515cfd05da03","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":51,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"41fb04a9-c21e-4361-af95-89ac48a0955b","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":51,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"15b0fb15-8dc3-47f8-b9f0-40d70d8c6b8b","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":51,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"2086ad57-eb58-4269-9892-78d4c88f60bf","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":51,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"783c6438-ede3-493f-82fe-f49316a410d1","block_type":"box","text":"traditional income producing securities are not available.","page_number":51,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"fa5bcd33-180b-4a69-95e0-6e88e9120059","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":51,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"c7c9251f-f09f-4efa-9917-90a70f352624","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":51,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"02c89213-4b44-4a09-b409-fe57ba4b5f6d","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":51,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ba51431b-a72b-4e78-ba2d-dd9693728796","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":51,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"828f449b-1f76-453f-a636-5c5f2b48aab6","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":51,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"13f9bb26-4a91-4d2a-8ce1-75510f2a4776","block_type":"box","text":"II-8","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5cee69a6-4e32-4b1e-a290-3c728f2f94d8","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87da8b40-14c2-4a4d-841b-fc0619b141e6","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":52,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"f77b93d5-0943-494f-9d0f-6e5095119ebe","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":52,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"b4dbf8c5-1699-49c9-bd87-c894965b6fea","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":52,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"2ee94d07-660c-4168-b7fd-bc591ae81ccb","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":52,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"68ae00b8-f1d9-4fbb-a83d-08493f32ecd0","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":52,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"4387a1c4-3344-4d81-813f-92feff44ee1c","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":52,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"4b2b1235-ac47-4461-a7c3-cdffbdb6b45b","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":52,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"940fe304-e3e9-4d5a-a4b1-51eccf584923","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":52,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"5b4bb7b6-8096-4f07-80d8-cc7da939f174","block_type":"box","text":"investments.","page_number":52,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"d1b2ada3-b6dc-45de-8094-41a230b0b1d8","block_type":"box","text":"Debt Securities.","page_number":52,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"14e7fd35-099c-478f-9427-cac954c77bc9","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":52,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"d54b3e58-f3fb-427a-9b48-b90a934b2e68","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":52,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"d55b6ae8-6bdc-4999-ae01-04768aed1c7a","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":52,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"3e098e83-9f41-4fc4-ac09-58218fc69891","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":52,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"eed5d274-222a-4afc-9fc5-c70e65a41088","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":52,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"2f69d2f8-c29e-47c1-826b-21d00aa4768b","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":52,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"2c687234-cd89-42fb-b6f1-70ceef9f11d5","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":52,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"e0c0ad1d-fe0c-4f7b-85a4-f2b3fad5b42f","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":52,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"cf7cde7a-b410-4704-a3d8-bb8a88d53c2c","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":52,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"00fce338-d571-4716-8a88-1c4b79e5e270","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":52,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"2f0094d1-6abc-4edf-8c60-9952df22a3f2","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":52,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"f7a3f01d-6acc-42e0-8c27-e86706c0a3b6","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":52,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"1d7ba72c-f7f8-4bcf-9c67-a928b9d283c3","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":52,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"a46b7040-6abc-494b-8b4d-a32eaa01968f","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":52,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"adf0172d-7d77-4fcf-b9f1-b40cb964bb02","block_type":"box","text":"lose value. This is known as extension risk.","page_number":52,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"e377d834-0483-4ab9-8739-5b01153ffb45","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":52,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"fb3c8e4f-da3a-4713-86b5-47fad0be7b4a","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":52,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"c2a0b74d-982c-4b30-b4d5-3884ceb51a1b","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":52,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"5d54e65b-ab92-40b7-a4a0-65c5f5501973","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":52,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"e49805bc-8ec9-4935-8a1c-02bb60cb045a","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":52,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"c5d632a8-4e40-4d22-aac9-dcf6f9446117","block_type":"box","text":"Floating and Variable Rate Securities","page_number":52,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"b19ce30f-da6c-47bd-8294-ba74b9837083","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":52,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"f4390e8b-f26b-450b-928e-6de918e3cb2f","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":52,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"d9e0401f-e5af-4fc9-bd41-37987b33ed77","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":52,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"fadbd832-0494-4062-b67a-3e1bae5d1554","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":52,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"d980588f-7c13-45f6-baa6-81f4b44088ea","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":52,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"fad76faf-b4ec-4673-90da-6cbe19789c5f","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":52,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"22d6f5c5-0baa-4d48-b632-f6b56a9b5fb4","block_type":"box","text":"market interest rates.","page_number":52,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"5f30b505-ab5d-4956-8d36-d1ba840a907f","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":52,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"451b8f91-a1cc-4b9b-a381-10f00b389943","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":52,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"fdb76e73-cd85-4d04-986a-46890994bbaa","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":52,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"d8b0b5ed-5e52-4edb-8efc-e1c671a4522d","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"ce573a16-3842-4ffa-9392-fb2a6a1b8e6f","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":52,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"6e8238e9-dd39-4176-b19b-c8feb0c784d0","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":52,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"03c05880-2af0-4327-bbd1-dc74729dc4ee","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":52,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"869e9db8-199a-4565-8aa4-e13b04e6ad3b","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":52,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"56d2f8ec-89ea-4a19-abd7-280d5ca6db9a","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":52,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"11c20224-0f38-4459-821a-1ec7a0790ce8","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":52,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"27d8b15d-7b0a-426c-8940-758a05c35010","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":52,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"c3eae57a-0aad-49d3-8ebd-88828e063472","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":52,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"39431346-8cec-403b-923a-a6b62e3f2efb","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":52,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"5fe272d7-fcf1-4e4a-b446-4295e7b718e6","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":52,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"f882dd47-2772-4a02-a61c-7f8b2a7764b2","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":52,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"5717a0ad-4871-4d32-919b-16f1c5a24740","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":52,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"6105908c-52e1-45de-8050-1d6e47dd2405","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":52,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"509dd107-74b1-4218-8804-0d1225e6a4b0","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":52,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"7edd2cad-cd68-427c-a1e2-e6e8a4673883","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":52,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"c6eacf24-de2d-4b7b-9116-a4e8dadab223","block_type":"box","text":"II-9","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6da86b29-7133-4bb4-9874-bde246b3b30d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d35013ec-74e2-457c-a8ff-0d136d2487ab","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":53,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"a22d0a96-7bd7-430c-bcee-ac9da43f53be","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":53,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"b8447dfb-a13f-466f-9a0d-a880f324bdab","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":53,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"194c44b0-8599-4bab-b52d-83f96350be96","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":53,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"a3a359ef-04ef-43ac-bbfa-071f3db9c1cd","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":53,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"1fcb48a8-2fa9-426a-975c-53bb80498aca","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":53,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"9e5a98bf-5b97-40a6-82f0-a0317f6e7db0","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":53,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"54f00eb6-cf26-466b-a9df-100347842df0","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":53,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"bc15d4ae-7110-4bda-a9b4-57c2910362bc","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":53,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"93704650-2edf-43d3-a266-5f8e73147de6","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":53,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"1fb3baf3-6e1b-439c-b032-ea181fd6996b","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":53,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"709b66ab-6069-44bc-8590-583257d17346","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":53,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"3b1d2a7c-b697-417c-8f94-85208f09b94d","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":53,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"0a98b23f-500d-4162-a300-b76fe73cd274","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":53,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"5f11f8be-3208-4ac7-b0d8-8e0ca78086ef","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":53,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"a41f1479-9a91-49d8-8182-13133d7cf1bf","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":53,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"8ca9d362-fc14-4a93-9b65-3697a8de75b7","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":53,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"c57f3366-4979-4419-85f0-76b9bb2c61c2","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":53,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"1feb6153-d989-4a90-8a7d-a085468ca514","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":53,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"6f60497a-ede8-42bf-836f-93e8ef08c4c7","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":53,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"a2dc74aa-4b1f-4d5c-a869-90885c0d881b","block_type":"box","text":"United States.","page_number":53,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"02ab54ed-e653-4062-a63c-a38b9b552347","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":53,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"321dc0d0-6f31-4b92-a798-80da9e990cd7","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":53,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"401c1afd-629e-452d-b5fb-995366af9eec","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":53,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"6a67e078-39e9-4b66-afdc-06883b1169a1","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":53,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"fa10da20-efd1-40db-ad0d-941971b579bc","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":53,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"17e062a5-19ae-45e4-9fc4-ef8b423be67b","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":53,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"d84b8b76-94c5-4eb6-b3b5-87a78a5b0278","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":53,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"65ec4ec3-db87-451a-a71b-29f13c98d483","block_type":"box","text":"i.e.","page_number":53,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"a9315c4a-f227-4a23-a706-1c5f90b3e763","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":53,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"e0f469f8-4155-49d2-876d-4781247c84ec","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":53,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"57dc3418-b779-4f55-a1b9-1b25240ab3ba","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":53,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"41307b18-103e-4818-8506-7ee9d82025a9","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":53,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"8b92954f-062d-489e-81d5-27808b4d72fe","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":53,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"d757a908-c830-4bf1-ad36-51bc743b3717","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":53,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"a6208d5e-5ae7-4af0-b7fa-910d81e99178","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":53,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"927aa6f9-5ed5-49d4-aca6-fa0fe9605618","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":53,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"0346d501-2f76-4f29-ad0f-11165502efe8","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":53,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"f8b0d1cb-eb2d-4e39-9284-21391d0a427b","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":53,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"2001c47c-0b52-4249-9454-c22658f85c17","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":53,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"b3c554b3-aab2-40d8-b090-0722ca934954","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":53,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"8aef5e8e-2e76-4076-a698-0f7f1ee17284","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"fbb17f50-a541-4534-ad6b-e5ef876e979e","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":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"3bc70bd2-ca5f-425b-a78f-5d3d61c5d61d","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":53,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"3df38269-b4e1-47cd-b5a1-dbc907f66a89","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":53,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"4db62f5c-d2f8-42ba-95d0-a9069d922162","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":53,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"896d68c0-92f0-470b-972f-157bbf1eea5c","block_type":"box","text":"risk than higher rated securities.","page_number":53,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"fb15dbc2-31f0-4cb4-a545-2f199c3de763","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":53,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"f5015950-9d04-4312-9ca0-a8b8b62c9633","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"9ec977cf-0c70-455b-96da-f8f0f71bfd83","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":53,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"82d75e0c-8e2a-4feb-8371-71527230b291","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":53,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"facca317-7214-42b2-b7ef-88687cb3b332","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":53,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"3bf390f4-c21d-4ea2-95c7-ee4ad4788bd6","block_type":"box","text":"unavailability of additional financing.","page_number":53,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"be080215-352d-4797-9b3a-9fad48a1d15d","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"34eaebe3-982b-4a47-8ac5-7ab7503d3c2e","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":53,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"e7420881-4d5a-439a-8f27-2d9cc239da39","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":53,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"1be3559c-d73b-494f-9be6-77178cab75d8","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":53,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"3863e6ac-c883-4796-9212-9ea879d9eb86","block_type":"box","text":"II-10","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"afc7f7ed-4072-4409-929d-6cba23f0853a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a6c99e5-bcd3-4cf6-bca1-385b80e51230","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":54,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"fc1af28f-84f2-402a-a657-5fabb960e9f8","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":54,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"61d60aa2-79d3-4ceb-b663-7877325f92c0","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f816a2a5-b9e2-46a4-9d09-3c298f9b9cf9","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":54,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"007ec037-45bd-40f9-b790-4bc298cb95a7","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":54,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"9720ac2f-e5fc-46ab-8044-1936fc08e93a","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":54,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"091651aa-d0ee-4f7e-8151-ef86220883ab","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":54,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"617479cb-da55-4d99-9716-3ba06a472191","block_type":"box","text":"investors in higher rated securities.","page_number":54,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"f9f82d38-9f8a-4f1a-831c-04b178b367ea","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"5c3bd3f6-a2d5-48ef-acb6-4d73f0042417","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":54,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"fd1dbef1-ffc5-475a-ae20-575671ea9877","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":54,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"cef082d2-1e8a-465d-818d-574427bf26e7","block_type":"box","text":"lower yields and may lose income.","page_number":54,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"cb9a0910-006e-4bbb-a426-8e995050a1af","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"73b41ec5-7b9c-4467-a882-54527fe4e535","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":54,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"9916832f-1ed5-47af-a0b6-b137688f2d50","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":54,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"c9aa858e-3090-47ef-8279-478de46dd0c4","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"6b56df00-536f-439d-8cc0-dee141609342","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":54,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"cd3ee23b-af82-4553-b39f-556ae6333ec2","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":54,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"4c444495-6180-41b4-bbd9-23040ef96807","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":54,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"400fa65c-b219-412c-8626-bf7beafcc07e","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":54,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"ef4377b1-d721-4c2f-b146-e47c6af78269","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":54,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"b6fb6184-1702-4928-8582-87351734fb58","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":54,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"29bd8856-e56e-4b23-b22d-cc662d226141","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":54,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"de759a93-77fb-4ba8-9524-7c0ac4adcd3b","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"ffda500f-3683-41d9-a560-2731714d0a75","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":54,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"6fa31ee5-6c8d-40de-b697-9ce85feb1ab9","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":54,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"15b46a34-44ca-4248-b863-531f12b41585","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":54,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"37ad85db-2740-4051-9ecb-3fe859c9b701","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":54,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"ff420d28-ec3d-4598-bcea-1142db91580a","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":54,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"e6245fb6-9404-48b8-8149-585d18f89627","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":54,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"697be17c-2935-4ced-87a6-5b7db585d1d0","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":54,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"e52dc4fc-aa0d-4700-ac7e-426143b20ffa","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":54,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"3726591b-7253-4d08-9aeb-19170781e753","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":54,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"4a96414e-81e2-40cb-9e65-1797df1c52ee","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":54,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"86e2f171-5dd4-4ee5-acc2-ecc04306cba2","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":54,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"206d8c99-0505-4f23-a26c-a13d4976cb66","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":54,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"b6973e90-0733-4806-990b-92708895b57b","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":54,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"fabd82e1-5d0d-49b0-ad3f-b3a71416f27e","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":54,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"fe86b7ad-7a89-4dce-bd0c-b139098fc7e4","block_type":"box","text":"role in determining such valuations.","page_number":54,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"b400d0fc-abbe-4b78-beb2-95b1404b83b2","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"b57ca05c-021e-46e3-a4ff-d9338022b06f","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":54,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"eceb8da2-a3c4-4209-a75c-c8076ffcaf40","block_type":"box","text":"a defaulting issuer.","page_number":54,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"d68487a4-11da-4485-9bf2-ce9f60304b40","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"bde4a60b-2ca7-4033-9e7b-5abbb53042ac","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":54,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"ada6cf39-9723-4f4d-a3dd-297c45f88968","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":54,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"bf8f9c5e-5093-4b7c-87df-31a7b0a9e59c","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":54,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"8d6f7c65-277c-456f-8f6f-b9b22c9d2acf","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":54,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"0cacd9df-160c-45c4-aecb-ce5169d73436","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":54,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"ad831e8d-71f4-424c-8191-2e215e48f574","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":54,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"eb715297-b1e6-4ed1-8f9c-e9daa7382446","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":54,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"a1a2b673-51f9-4f17-814d-3b62ca1241b6","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":54,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"863d6c37-b6b4-4074-bd26-0c1666a78286","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"6d4d29ea-b763-4fad-aec1-759fb5e10c73","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":54,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"8ddb7b73-6dfb-4c6b-bd7e-bac69db16c0b","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":54,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"71e2a123-83e6-4df4-b75c-8258fb708587","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":54,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"d414817d-acb4-4f8a-82fd-f2ce2f4461ab","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":54,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"c4075811-e0b8-4965-9ac3-e41127ef79a3","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":54,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"3ce3b91c-90ff-441f-bf6e-fe8dad6af23a","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":54,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"5b4bf39e-0834-416a-a02e-340af34748dc","block_type":"box","text":"higher-rated securities.","page_number":54,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"3ba65f68-8c66-4560-86b5-dbe3aaeee72b","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":54,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"66fe340b-f70e-40f7-be98-8434b4447893","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":54,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"73209011-5964-4085-9382-85d2f2c7cae0","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":54,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"05d28113-3a51-4b3d-acb3-d8a66fd81b9a","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":54,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"9fd12cea-03a8-438f-819c-e5e8cd567326","block_type":"box","text":"II-11","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44049753-97da-47d6-8638-606bf96d2b86","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"357cf5a4-295e-49a8-ad65-a058c1eafc64","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":55,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"060a4610-04dd-4242-8fb9-35cf42138533","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":55,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"f7a00da1-65e9-44ac-bdf3-cbd33ff49f0c","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":55,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"17e89e3a-332c-43ab-8a52-e94087ca4414","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":55,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"b4aced89-d73d-4183-9d84-c0746d65dab3","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":55,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"f895d5ad-fdcf-4538-8e16-5e7fb1df10bc","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":55,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"f96cc0b0-1c81-45d6-8be1-bd2d244eb63e","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":55,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"a281f332-e078-4a06-a92e-799391d6858a","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":55,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"0642d641-2621-4120-9f0e-244858f615ed","block_type":"box","text":"Mezzanine Investments.","page_number":55,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"bfbc85ab-8473-41e2-bc2c-b60661543a41","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":55,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"5e7e52d7-12d9-4c3d-935b-97c3f0ffe969","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":55,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"60fb54b3-cafa-4ad8-90cb-bfce54aa7a7f","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":55,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"bb48cd39-53af-4aa5-9548-ecc085985123","block_type":"box","text":"e.g.","page_number":55,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"d9d4652e-5af4-4f21-bc07-1191cd11d203","block_type":"box","text":", with","page_number":55,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"d72dda16-c83f-4c42-b6b8-55ec78d06690","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":55,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"e3f5d92f-0ca3-4615-bbd5-45f458012555","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":55,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"cd1335d3-37e4-493c-ad2d-b2af42540f1f","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":55,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"4d696fce-74e6-4461-b982-fe8ffcbd785f","block_type":"box","text":"other obligations of the issuer.","page_number":55,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"44c6d6aa-873c-424f-8e73-fec656d44ad3","block_type":"box","text":"Pay-in-kind Bonds.","page_number":55,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"db700abc-d4ee-49f0-b7a6-3ed342a20881","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":55,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"7d8e35f8-08f4-4757-a732-3077538c2a8d","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":55,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"c4968bcd-b610-4660-887f-d299526584ae","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":55,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"ac0381a9-2f21-4794-8976-5fcbdb4fe163","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":55,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"734b7d1d-8d92-4757-bb3c-ebc64d95ba9d","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":55,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"67a5cbc5-b506-45cd-86f1-432068b5fbc2","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":55,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"b5e9f895-a0c7-40b2-a000-d484b41da10b","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":55,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"9117157e-f955-4387-98e7-e16d6e6ee91c","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"ec4297f3-947b-4feb-b2c1-ec0ccfef1622","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":55,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"4b9d24ac-a084-4cd4-b588-93654980ff23","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":55,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"d79a5eb7-0381-45f0-8185-d83561b7fe51","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":55,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"f1b1da6e-63c8-4374-baa9-23a0d11bca4b","block_type":"box","text":"Supranational Entities.","page_number":55,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"398c64ca-6547-4ec0-9f14-66daa302d5e4","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":55,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"5e9d918f-402d-49a3-a294-a15f7d4005a7","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":55,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"55d3e710-4de9-4b0c-ab6a-8da88dc36a00","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":55,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"c6c24c7f-8841-4c75-8bca-d7fbf69fdd13","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":55,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"24d4dc52-307e-42e0-936d-6d7124ffbebd","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":55,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"78727c1b-00e0-48ab-908b-9282ed93a9ba","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":55,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"e335d06f-1b52-49f0-9b0d-2ddfa0ada249","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":55,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"dafea5f4-59bc-4c12-9195-2dd4bed4c1e5","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":55,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"e2402f2b-c415-4bc5-acea-b74c47353491","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":55,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"5eabdc42-5783-4509-a65b-751b9335f6f8","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":55,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"bc49fb74-7051-4ed5-afae-ef2c5f6cfe63","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":55,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"fea8bb73-c41e-4ae6-a78b-acc0886ca312","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":55,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"a00af8ef-5557-4fb1-902f-ccdd470e2c6a","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":55,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"f618eb5d-c90e-48f1-a02b-50c2eff594a3","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":55,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"0c178cc6-01a3-4db7-a006-04b7284e6520","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":55,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"a36b283f-2c1d-4d62-a418-04319465e3f5","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":55,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"b693729c-625b-4e59-a464-077391f6d967","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":55,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"e1908d92-2081-4050-a698-251cc043ff23","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":55,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"7b04173b-c856-4a46-84be-6e0b48e830bf","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":55,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"31e0d6e0-9305-4e2a-902e-44e139ec7c2b","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":55,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"8ab64028-98ba-4701-8f06-9ac05dff6a5b","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":55,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"ea1b2f68-b5e4-4612-bb82-48bdcdf691c6","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":55,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"04059924-ac37-4b46-8825-b9ce43815960","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":55,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"28e80a88-7eca-4fda-9009-43c13d0ff3c8","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":55,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"ef23f097-9de4-4a0b-ba4c-2fadb1defe7a","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":55,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"5bec9d96-fafc-449d-9564-384193d956a5","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":55,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"c6ea9d5f-7e73-463e-83a8-25741595d4de","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":55,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"0d33e16c-56e4-409a-8aff-7bc03015738a","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":55,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"774cb842-7608-4fa0-a22e-761225773490","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":55,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"3ccc06e7-dd2d-4f7d-b855-62a8ad450ec9","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":55,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"ea1bf6ed-748d-419a-9ea7-f15273cdc455","block_type":"box","text":"II-12","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf14e9ca-46e4-47a7-8ec7-eb6a2042ee2a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"493a3fa8-85d7-4787-a4bf-4342787773db","block_type":"box","text":"Derivatives.","page_number":56,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"41cc3188-b227-4cb4-a2e2-625d13ac3195","block_type":"box","text":"General.","page_number":56,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"bcdddcc4-aeff-4b52-9974-0eff70338b53","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":56,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"65240884-9e06-4324-8e7d-e087dab9ab21","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":56,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"6cebbabf-c3c3-4708-bf21-18a53973719a","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":56,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"2a4c203a-fc13-4d9d-90de-b1ae4f36c8cd","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":56,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"68029118-bdd7-43c4-a0fe-62d9f09d0931","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":56,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"bae023a0-43a5-4676-9b8b-ff1bc0c7b9a5","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":56,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b648c35e-cda7-4388-b8ff-575bd85e7976","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":56,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"dade1acc-8991-4b30-8da4-e607940a8ad1","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":56,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"c4255179-a64a-4561-a784-22aa2b243eaf","block_type":"box","text":"i.e.","page_number":56,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"408ff0ce-f863-4240-b599-680685ef9341","block_type":"box","text":", the payment","page_number":56,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"5d006b98-e931-470d-a7b5-65a9b81f00b4","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":56,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"0d8c4262-2b40-4688-ba27-c8d0f9ef3931","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":56,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"d24f9402-b0d1-4c68-bd9c-47b05271c274","block_type":"box","text":"Hedging.","page_number":56,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"fc5f63a7-aef7-4976-9c00-d4ffa29a4da2","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":56,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"d0a27a37-8050-4859-aca0-dc32f805f6de","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":56,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"81ff9126-d07f-47b2-a8e3-a25c7588477a","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":56,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"85281e6e-4f7a-47e1-ab15-8f7541bfd064","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":56,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"70880aad-f57b-4b11-956e-b2acfb711221","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":56,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"c45db22e-53f2-4d9b-a407-a66daebe74a1","block_type":"box","text":"correlation risk,","page_number":56,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"6bb27c8e-6150-4e4a-a798-f9350a3e11de","block_type":"box","text":"i.e.","page_number":56,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"7f9e2be8-f6f4-4909-bd1a-9713f71cf112","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":56,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"0ccf07eb-a854-4c5b-8685-0b4e2f3f2bf9","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":56,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"7c2506ad-ac82-46b1-9944-b04df8287aca","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":56,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"a587608a-f2b8-4f33-8f58-9b8c56e13e5d","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":56,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"f066bfe3-0178-4e6c-833b-6314c0715708","block_type":"box","text":"Speculation.","page_number":56,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"883b2c83-7626-4441-8a70-db0e76c94fb6","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":56,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"ee2d3012-3631-4687-8d62-8a607b4487cc","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":56,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"7b77670f-caa0-40e2-8a9b-1d1ddb658d33","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":56,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"2a4dcab7-bf2f-457a-b3e6-838bbae338cc","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":56,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"3948f9ce-1bb6-415c-b90f-10c9c1165294","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":56,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"2dabdbb6-32d6-4f17-857b-ddf122a2dadf","block_type":"box","text":"Regulation of Derivatives.","page_number":56,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"f759d2df-cdfe-4691-bb39-9dbd246bea4b","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":56,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"09180bb4-a835-4dc2-8c4b-2c94edcc9595","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":56,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"150d6e20-1d36-4ace-85f6-aa7baf2e8bc4","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":56,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"5e4810ec-36e0-483a-8b47-c87cd3401f97","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":56,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"d6f9a95a-96e4-4749-869e-7cb988db7327","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":56,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"595bcf83-dd76-432c-80ab-2ae1d00df675","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":56,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"15af8d32-fb18-43d2-95d0-8f25fee0c906","block_type":"box","text":"coverage”).","page_number":56,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"860c1d5f-3e65-451d-89a4-3d4c046af5c4","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":56,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"51c35628-0a0b-4640-9865-54314fadfe6e","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":56,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"fdef79ba-c480-48a1-a9a8-0053b363348b","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":56,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"5432c4c4-cc34-4dd0-a864-bcf935ceed2d","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":56,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"9b030899-b08e-4e9a-b2eb-f86f7740e8b4","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":56,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"442caa12-e72c-415f-96f7-fb72d84a0aaa","block_type":"box","text":"financing transactions (","page_number":56,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"06dff664-9ca3-4b86-83bf-98def65a0ca0","block_type":"box","text":"e.g.","page_number":56,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"08000aa5-6283-4c23-86dd-564c70084a8f","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":56,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"590e03bd-7581-480c-901a-2e1ecb92fbf9","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":56,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"bf54f777-7c2a-4d62-b468-bb03fc308c15","block_type":"box","text":"securities (","page_number":56,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"45188e53-0ff2-41b2-b270-a367a9b05c5b","block_type":"box","text":"e.g.","page_number":56,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"386b31f0-b000-42b3-ba0d-205c79b69836","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":56,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"51bb6e1a-5823-40de-bc7a-8fdf923d4723","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":56,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"064c77f8-dab2-4d1f-8e91-2b23eea41e23","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":56,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"ecc59061-b53c-4b20-99a5-37477d48ca57","block_type":"box","text":"Commitments”).","page_number":56,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"806cbd8d-d7c4-48fe-81f4-0020fb81893d","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":56,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"f6b55b75-0945-4f61-9ab9-c1006bd6f861","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":56,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"4b1715d7-9766-48cb-9bdb-457e8f86bcc0","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":56,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"6051009c-07f0-4476-ac0c-dc2d5b06095a","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":56,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"e46ce4e8-4bab-4d16-9ca9-91bc729d5c08","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":56,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"13784b91-c8ef-415f-be7a-2a16c53c8313","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":56,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"d9a8da25-cae7-451e-ba54-1322ba1f1901","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":56,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"a2d3ae50-8553-44ee-ba8e-df3ee4a414e6","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":56,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"b9082062-ee75-4a4a-8f23-82da6ddff187","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":56,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"00dbee5a-af8a-4721-9eeb-19e338f2204f","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":56,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"3ced64bd-0e70-4771-b883-71fa0ccba383","block_type":"box","text":"II-13","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db1aab85-f790-47d3-a6df-21c73d03edca","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"291ff480-42e9-48d4-a9f2-16180eb90ef9","block_type":"box","text":"Dodd-Frank Regulations.","page_number":57,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"c42e0a6e-7f7f-4761-b1bc-75a05422c117","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":57,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"56106f07-9512-4496-bdc3-850170d90583","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":57,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"83ba026f-8749-4692-9024-1a98eee846ae","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":57,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"cbe09f04-777e-47c4-847e-1091d86d8290","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":57,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"3a033083-ce9e-45aa-9ee0-61f93fef7f80","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":57,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"72a6ef29-83d7-4423-80f1-acb736d97e48","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":57,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"6a13146b-c883-44b4-8851-7d28aa83a40b","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":57,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"bbecca8d-3326-4d69-929b-2d8209f938ae","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":57,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"17acd4d4-8833-4faa-9329-119a16b82aac","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":57,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"d03433b9-0440-4d26-8951-e5986733c4e0","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":57,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"90f8d4c6-fa8d-4402-a2ab-6fb1b03a8f56","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":57,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"bf8c0fd5-aa99-42d4-a6fe-ca682b071f09","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":57,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"942bb57b-f0ec-40ff-81db-b6fc5b093283","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":57,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"317db6dc-0337-4394-a629-a80404430ff9","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":57,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"f6cf77ec-e5d8-4b19-8831-7d66f5555825","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":57,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"858db067-cc62-42f0-b1ce-ab8619eda86a","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":57,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"69b49406-c658-42ce-ae6c-a11fd4ef33cb","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":57,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"27fd3dfb-fa59-4e46-99ed-643212f97146","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":57,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"a3bdb13d-4bb4-4ce0-a9dd-59e543a18dd8","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":57,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"2c4656ef-668f-4008-9d4f-3b599fe74654","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":57,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"27e26497-65f9-4d26-8671-f46dcfbca5b2","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":57,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"86389d58-c076-48ed-b250-db3d262dceb7","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":57,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"9ff137a9-bcd4-49c3-9015-cfef26203dfe","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":57,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"2fb37167-4f4c-421f-9963-090105850f06","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":57,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"28aab19c-e57b-4ab6-8ebd-da4205a057e4","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":57,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"332f1cbb-cbce-4e23-b64d-2ec18901c429","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":57,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"c18c2ce5-f3f9-4b0a-af25-a2b73bfc83fa","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":57,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"cb14318e-dc1d-439e-aef6-f348a0270b12","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":57,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"127456e4-4bf4-4b64-bc7f-c1e2362b06a5","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":57,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"e79479d7-9468-4fdb-8f4f-181984fd04fb","block_type":"box","text":"member.","page_number":57,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"08124787-0933-4255-aee3-a5908bc29043","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":57,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"e01e9658-4660-4295-9246-22a5438126f1","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":57,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"31008da7-d6ff-418f-bf5b-80181e8a07ff","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":57,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"c4dea93e-8197-4d6e-871c-0de5a0117c83","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":57,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"93597a42-14ce-4719-ba42-68500bdde848","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":57,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"c8024556-6133-45b2-9e8a-5e2d5dc9dcc0","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":57,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"c03846c1-04cc-4708-9d13-95ead6013513","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":57,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"7716fb56-8776-477c-a417-dd730cb7379f","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":57,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"b64566c5-a4bf-4223-9011-f000d5788c03","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":57,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"ad2eb850-030d-44b4-8a46-ab26432cab4e","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":57,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"5b653911-6274-42c0-8173-877c3b51b799","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":57,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"501d79d0-9606-425c-a3b3-e2976c1ac04e","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":57,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"c15c4620-8f8f-4b9e-a160-159790ec7ac4","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":57,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"2edbd67d-b718-47bc-9e92-94bdd27278ac","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":57,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"77e484eb-8132-44d2-a102-cf30710430c3","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":57,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"bfe06f1e-d387-42c1-994b-f3c984e6dd6e","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":57,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"4828c7f3-f442-4506-991d-762de905dd47","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":57,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"35e94dad-9ca0-4bc3-aa7f-d262207516f7","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":57,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"dfe316bb-dc09-4f01-ace1-5f380fafe6d2","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":57,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"ee51e93f-0b90-4d28-a695-7ae67dfc7c35","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":57,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"101eb361-201a-4c4d-8ef4-25d3bab77ac7","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":57,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"02ec7e94-210f-4112-8542-02f2451d32b6","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":57,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"f68f57d3-a6f1-4b15-aa70-28449170035e","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":57,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"ecc94529-e9b8-45d8-9808-c6876d9a33ff","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":57,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"483f7608-684e-48b4-bd28-8a2621a7b20c","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":57,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"4ced6861-8212-40ca-b54c-55ce08d181eb","block_type":"box","text":"II-14","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f91f918-cbc2-4f6d-a0d7-417e52e6317e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"904e93a7-7222-457b-bedd-dc5553514ef5","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":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"62969dbf-8b2b-4b5d-89ac-8c8250dcd194","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d313a523-9140-461c-9480-531ac8762c25","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":58,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"4ff26588-fd41-4e36-835f-3b0e3f7aaaea","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":58,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"b2fd5db5-b751-4387-9025-7d05e9f9c431","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":58,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"6e9c1938-3abe-4cea-b48f-410f645fe30b","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":58,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7fba22c6-123a-49a1-964d-c77f771cf189","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":58,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"fb213333-bbf4-4f4c-9ee4-104b46b906ad","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":58,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"ada63bde-f948-48de-a672-ba21fe25daee","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":58,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"768eba8e-37cb-48ce-9c34-ae9bc31d4352","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":58,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"4808f45d-0250-48c2-8e79-1972b523bee3","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":58,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"1403451d-c164-4540-9422-a2d1fcd5427e","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":58,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"2fe07f67-87a7-4e6e-a95b-1662c17908f7","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":58,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"0150d85f-914f-4dc4-bc91-9594fcedf82f","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":58,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"5976029c-cd34-403e-8304-60c18559485a","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":58,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"6bca6f11-ab28-45ef-96ec-4cc41b4c05f1","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":58,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"e2879b17-f726-4b81-9da8-94e4bb61ef93","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":58,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"1c496806-397e-4896-829e-1ef4777d77c6","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":58,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"6fc0a672-c7e4-41cf-a87d-0091b5bd6414","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":58,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"ecd749fd-6a81-4cff-a108-38438728e2b7","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":58,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"856cff73-5de4-4146-89c9-e31a5bcb8b72","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":58,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"1f58c9b9-0a7c-4af7-8613-be80bfc4cdad","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":58,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"fbe74920-d30f-42ac-8361-cfdd21ae0d7e","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":58,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"f70d8756-51e9-41da-ade6-98c9f2a96b58","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":58,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"3bded5c1-5acb-4c70-bbba-87e65dcf7233","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":58,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"fb5f48a9-2a9e-444a-8fc3-4c6491a1c9fd","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":58,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"ed7618d3-da2f-4525-97ad-106b0fb80cb8","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":58,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"8855dea8-5900-4b02-b539-0610998684dc","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":58,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"f86c2f9e-7b60-4426-a9ae-22db8bad71c2","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":58,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"d95a995f-ecd3-47a5-afc9-c49653b1b2b8","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":58,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"b652982f-ae13-4208-8bb7-771c0e43ea50","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":58,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"68c65640-0932-42ba-a81f-f3967a15d961","block_type":"box","text":"collateral received under such contracts.","page_number":58,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"c9eca126-d9ed-470d-98f7-ae9330e7b90a","block_type":"box","text":"Risk Factors in Derivatives.","page_number":58,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"f2b816f2-6b65-4165-9812-c24d7d0eee3e","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":58,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"bbf3517e-597a-402c-aa63-19ae907721c1","block_type":"box","text":"Correlation Risk","page_number":58,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"1dde9b57-989f-44bb-ab82-bb9693255016","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":58,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"744b302b-86ee-452e-b1de-2abc254ee551","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":58,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"2410c4cf-97c5-429a-ba98-4c9c4c7aaec0","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":58,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"c47beda8-abdc-4919-9c17-9b1183ac68eb","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":58,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"fdd37f02-158c-458e-83fe-379788738a74","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":58,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"46301f39-f532-4e54-81cb-b07dfc2d2b73","block_type":"box","text":"Counterpar ty Risk","page_number":58,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"ca1d511d-777d-4cb9-bffb-b688a1ca7ef5","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":58,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"a6895e1a-3a6d-4402-8a84-a9ad3059676d","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":58,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"f789e27c-656e-422a-9cb8-864f117c06b3","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"7c6d9e57-57ed-49b1-9d8d-070b9a3b7fca","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":58,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"3276cf3f-e4bb-4fc1-839c-980b2af6bdda","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":58,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"85aa386f-4b08-448c-84e4-fabdcc4f8dd3","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":58,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"408bab1a-0112-47b3-8059-0ea9c3314515","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":58,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"e9567ddd-3d69-4120-a6af-3de1e7b2b244","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":58,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"0e80a1f3-e66a-4bf2-b1a6-30b30472704a","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":58,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"4b9d40a0-a0e6-47a5-8682-15ebbc9f674d","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":58,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"6fd1c4f7-f82f-41e9-8ff6-755ce9325e7a","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":58,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"dfc6ed57-e8bd-45b9-80a2-0b8f850ae5a7","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":58,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"1b1a7908-6139-446c-8bbb-dffc71318206","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":58,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"23c9f8aa-163b-4f23-ad84-cae157f0b2aa","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":58,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"6deb6cce-a084-4072-a40d-65e88fc5df15","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":58,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"c3c69c33-8763-4b97-a3be-32de83ff96a2","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":58,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"be3a5002-43f1-4f19-9cc5-bd5ec380cd5c","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":58,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"c1cfacfe-9114-4eb2-bdee-728ad98f31d9","block_type":"box","text":"II-15","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04f1938f-7b7b-4c7d-8764-4c2ebec1d6e6","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2223d06a-a3ea-4dde-b4b9-93778aa3ea18","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":59,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"6053785a-0725-44b5-91b1-e9b09e673308","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":59,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"564bce58-7ad8-4ccf-9c7d-0cf78279d542","block_type":"box","text":"by the clearing member.","page_number":59,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"2ff7e9e1-24b4-4b77-ab84-d32c90610a2b","block_type":"box","text":"Credit Risk","page_number":59,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"e0ddb0d0-aafa-4db8-a65f-7751f96c8c5a","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":59,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"293132e2-69e0-4880-8c75-929b8b28134c","block_type":"box","text":"honor its financial obligations.","page_number":59,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"17beb310-fa53-434b-8e7d-adbcbab3e6cf","block_type":"box","text":"Currency Risk","page_number":59,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"ad54c0cb-996a-4e66-ae99-a83da9bdaa04","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":59,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"429de746-f8c6-49be-b5a6-d95a38c9dfca","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":59,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"55284c09-67f3-4c70-a03c-96438ab18da7","block_type":"box","text":"Illiquidity Risk","page_number":59,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"2213ad9f-9334-4b4e-b7e2-d1a62736e12b","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":59,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"43c4ecc1-41ea-4bc9-9aa5-c4f49202699e","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":59,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"9952a57e-025c-4059-99b2-4749e003084e","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":59,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"8eeb4942-e6d1-4cee-845f-356c0415d739","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":59,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"495ba0ea-ff5d-46d4-94e6-82f29ef1dee6","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":59,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"da052432-8f75-48a7-8d9d-c776a7df5638","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":59,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"927449c6-8453-4fed-9549-662aa6b13b17","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":59,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"1382ea3e-6523-422f-961b-0a95ac74b7aa","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":59,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"a3ca4b50-fbe9-4482-add6-ad9c72dd174b","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":59,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"65dbf540-04de-4174-bc9f-26923edf67ca","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":59,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"a2a62cfc-37d2-40d3-82f8-21808e346bc5","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":59,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"60a43a5b-53eb-4780-a439-44e8d56f90bb","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":59,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"9e1e2f01-f1ae-49e3-b814-5cb9d7692ce5","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":59,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"a4bd6ae2-c7ba-486d-a707-79d9b267e3e9","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":59,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"d370b9ea-e381-4e31-a40f-362f3100966c","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":59,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"7419bba3-21fd-475c-85b7-a809c57d3aeb","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":59,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"6e745113-0bc4-491d-9f6d-a7307cabf5bb","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":59,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"6ffe0ff5-36b7-48d3-a5bd-dd5ed1060a62","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":59,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"62c663f7-a163-480a-8a3f-acd526e0399f","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":59,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"2a592865-32da-4a15-be8c-3a64f877dafb","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":59,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"37c90723-5293-45de-8ffa-52376ef6146c","block_type":"box","text":"may be disadvantageous to do so.","page_number":59,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"1a102b2a-1be1-482c-bc0e-ecfa52279fa6","block_type":"box","text":"Index Risk","page_number":59,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"bce770d6-1488-43ae-b61f-9dd189ad0de6","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":59,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"dcec48c2-7abf-45c6-89e1-f91ea0763cc2","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":59,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"2d3b9d70-3571-4c6a-a153-5fa8f115105c","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":59,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"19b19d7e-8790-462f-8d66-575cfac48108","block_type":"box","text":"Legal Risk","page_number":59,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"dd3d965e-911d-4604-aa1a-69889821d72f","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":59,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"7a2928a5-56a0-4ba3-9153-f8f9680fa30b","block_type":"box","text":"or enforceability of a contract.","page_number":59,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"4b5649a8-4eaa-4c28-8e4e-7c6b7c47f995","block_type":"box","text":"Leverage Risk","page_number":59,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"3f068207-f0a9-45f2-ae5a-aed294149025","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":59,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"a57cc9fe-7c62-48fe-989d-1c17589aac49","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":59,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"f04776e6-6227-495d-8e86-ece80a2550e5","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":59,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"3194cbd5-6077-4f7f-ad45-e624d9a4d0ab","block_type":"box","text":"Market Risk","page_number":59,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"fc8ae8f3-4ef3-430a-81fa-caa2283e6824","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":59,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"a7995760-9e4a-419f-a111-e72993e8f0a3","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":59,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"1a45a42d-c683-4635-9fb9-eb6d424a95ef","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":59,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"5f219505-256f-4772-b1cf-0ebf96d6c3f2","block_type":"box","text":"affected.","page_number":59,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"f40b98ec-646d-4519-8dd8-667337595e7d","block_type":"box","text":"Operational Risk","page_number":59,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"eb7bafa1-54d4-466f-bdcd-eecdd256a965","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":59,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"5aa850a3-2a27-49dc-a15d-cc7ab4d5a21f","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":59,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"c7b41c56-2247-453b-9253-15e5ffb065b1","block_type":"box","text":"Valuation Risk","page_number":59,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"c7d833c0-4733-4c0e-9388-72147311a30d","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":59,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"3755d508-3f45-4fed-b5c5-2f4f28abbdc2","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":59,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"66310b7f-3416-43e6-9f22-e22b989715d7","block_type":"box","text":"complex instruments or quote prices for them.","page_number":59,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"e9e47452-a9c3-44ab-b034-d1ab79dd0f44","block_type":"box","text":"Volatility Risk","page_number":59,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"d085cc09-add3-462c-ab24-e8c45ea93c65","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":59,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"2db9bda7-fc45-462a-96b7-633b49fcf56b","block_type":"box","text":"Types of Derivatives Transactions.","page_number":59,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"e69ed6b0-bcf2-4798-82f7-b2e1cd83ca57","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":59,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"d3f805ad-de2b-4f3a-b03d-dce0b61e832b","block_type":"box","text":"including the following:","page_number":59,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"49bb2d4e-9917-4854-94c4-7b7170dd4338","block_type":"box","text":"Futures.","page_number":59,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"712cd4c4-387d-4b6d-8838-d6f5e22980de","block_type":"box","text":"II-16","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3c137394-fee0-4df6-8a76-8c0b8e2ce9dc","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7eef0821-5810-4e06-a9fd-c4e0a21170ae","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":60,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"2b7ecf3e-9eb2-42a1-b570-5c70e73eb044","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":60,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c4b1af3c-26c3-4107-a356-026742bdd441","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":60,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"ffa99995-3b4c-413f-b6cf-a3ba489c7b74","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":60,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"8a20775e-ce65-4f87-a2d6-e0b4e73b1a17","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":60,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"3690125b-d2d2-47b6-8069-9217a08248ce","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":60,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"c02018a3-abad-4506-9344-eeb68c2617dc","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":60,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"dcb069c8-b3b9-4b43-9769-461e57361d02","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":60,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"fdea85e7-42d0-4e22-8a30-35f47e48b771","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":60,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"dda34d24-c855-4fa8-a2f3-07edb9fb749d","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":60,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"b7d583d7-b47e-47b5-96f9-7c2a1a56358a","block_type":"box","text":"of the futures contract.","page_number":60,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"a7533406-73c9-40c1-afe0-715ccde64469","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":60,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"579948c0-29a1-47ef-88c4-07460f71a351","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":60,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"7416d650-06de-4c15-a9aa-b18390bc0390","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":60,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"38e6cc6a-1b7d-4fe3-b911-82f669f33330","block_type":"box","text":"relating to the futures position.","page_number":60,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"ef607d9d-0689-4839-88fb-2fde098eb8dd","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":60,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"4ae34541-c6ba-4c4f-b662-2b689c633051","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":60,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"3812f673-0e99-434c-8ab1-1f849e3c44dd","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":60,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"7c843601-08d5-4a42-bb1b-69993926a52a","block_type":"box","text":"Regulations” above.","page_number":60,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"635a60a5-e02f-44c0-8d47-b0e97915a965","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":60,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"887badbe-a183-4448-8e84-aba24cadbc12","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":60,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"77677559-a702-4012-9f39-c5c7fa547703","block_type":"box","text":"(","page_number":60,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"a1ef5ca7-0739-453d-8cee-3ee005e74576","block_type":"box","text":"i.e.","page_number":60,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"60693557-d9bc-44a9-85f5-24cc6e3b5f2d","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":60,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"756573eb-d288-448b-a5a8-94374e3c9ad4","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":60,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"5334544d-ed98-4acb-b4ee-daf3e09ad403","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":60,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"03dceaf3-c34c-498e-8dcf-7aeed6eead25","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":60,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"5de8bd0e-7685-46a6-a68d-c74fc47eb60f","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":60,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"056bdda3-30e7-4bcf-bd7d-555a2af0f6be","block_type":"box","text":"Fund intends to purchase.","page_number":60,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"6fad8808-89d9-4295-bd23-2048d673d6f4","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":60,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"5671beea-911e-4b0c-84e3-0c09674b20bf","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":60,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"5604d54e-359a-4085-921f-2bfdb5a50728","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":60,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"fd0c4a3a-e1ad-4633-8c46-aed6d1543f68","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":60,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"c09e8f13-4c54-4ce8-8187-a711456cf6fe","block_type":"box","text":"illiquidity.","page_number":60,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"cc0b5926-a280-4907-91d1-3fc0cea778ba","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":60,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"1f3bfb3b-52fb-46c2-802c-6436951a26fe","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":60,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"b80569b7-0864-46bd-83b6-ebcda0f04274","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":60,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"32ce6625-53e6-4ab0-9ff1-20bd07247dd2","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":60,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"d7d72ab8-77c6-4c10-9578-fa427faeac26","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":60,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"76f0e593-6e3f-4191-a73f-8ea5be4fc467","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":60,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"efd3af74-ff95-450f-a51c-caebeab9d24f","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":60,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"07c7ba50-bc39-4487-a96b-a87e3d991b90","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":60,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"320e8450-57ba-4002-9165-a2d80bcda588","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":60,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"3afab27e-b0c0-4586-a5f4-5dc408f5a28d","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":60,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"2f637a55-cb33-4f54-a610-82bbde865f15","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":60,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"17aeb7b9-d7e0-4d28-9c0a-2488e6e3f805","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":60,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"fa9297d8-3e00-4387-a158-51b3d553751c","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":60,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"f7b747db-74eb-4a94-8850-395df397b1aa","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":60,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"a9a207c1-0a8f-4d14-9408-5b0f62b5ba68","block_type":"box","text":"Swap Agreements.","page_number":60,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"cbba64e2-cdc8-427c-9081-0edbbdc8237d","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":60,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2f92ce14-3285-4a02-972c-23aac2a5d8a5","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":60,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"31c52e5f-c38e-4e83-95d0-3a6ce8f1e7e7","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":60,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"4ba41a0c-ffa4-40b3-b16a-e3f551d56a96","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":60,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"4088eb94-8266-49d1-a561-4e513f996a00","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":60,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"dd0d447b-1cfe-45af-b2f4-80520fbbaea9","block_type":"box","text":"a “notional amount,”","page_number":60,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"ad722515-24fc-407c-9a94-b3883efc9db4","block_type":"box","text":"e.g.","page_number":60,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"43e42055-8cf4-4f6f-8f74-c60104eee9da","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":60,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"217b0e35-9097-4624-9d10-c92fee1f121c","block_type":"box","text":"II-17","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74e41609-17c6-442b-a61f-6b9838e86e06","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10f4921c-f938-427c-8849-fe1615d011f8","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":61,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"1f1eafae-56d6-491d-8b69-db1978bc2e87","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":61,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"aa0eb9bf-89f4-477f-ac30-70a35e8c8603","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":61,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"dde538ab-34d0-4a0c-b26c-8491ac606039","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":61,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"5743ef21-a3ad-4b12-afcd-32d613aa7125","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":61,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"a3043950-a0b0-4087-897b-30b5994b59a5","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":61,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"745e6a6f-7436-4d4a-ac93-1a57181f51ad","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":61,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"fd5db2a9-e83b-417d-b423-914c4c8bac1c","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":61,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"bf0e6b54-b9f1-4009-ba16-fb6e99de741f","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":61,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"e83bb90a-c81e-4885-8d08-a280f8c96e23","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":61,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"efdd282f-f87a-45d5-86f5-33f3bcff2bea","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":61,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"f251dc0f-70b1-4587-baaa-efdea38ad2c9","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":61,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"9550e63d-1240-4b0b-8dc1-be4d111f207d","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":61,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"b577e61d-fcc7-44bb-9eb1-6f13a1786e69","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":61,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"553a4e09-5b73-4015-a430-9eb68816d0f0","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":61,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"1aa698cf-67b3-4eb8-a7a8-b54d2a1ae3e4","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":61,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"2f2698f0-7105-4af0-a4cf-df6e542c94d7","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":61,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"82aad48b-57e5-4920-a669-f2876f1e015c","block_type":"box","text":"index CDS.","page_number":61,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"ee129a5b-0747-4f74-b35b-57c28a9067e5","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"c498fc5b-4b38-4b5b-812e-ded8c126e82c","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":61,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"17026243-36ac-40fa-a0d6-9558dc2a3a40","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":61,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"d7bc04bc-f60a-49a5-9f58-eb638a986984","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":61,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"5fb14e56-7ee7-4cb6-a82a-4620acfd46ca","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":61,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"1cf92f23-6222-4fb6-b9dd-46030f8b7593","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":61,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"14efa6d9-edc0-45d1-9abd-28a056e35d63","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":61,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"32a9ce88-c192-40f7-8289-271cd0587c38","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":61,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"9b07aa64-4fbc-46f1-84eb-81e01fb785bb","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":61,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"2568a751-a940-41dd-a79c-bc95807c3bbc","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":61,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"36f61bc5-4a1f-4bbd-8257-063b9fccbb71","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":61,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"b765ff29-68db-4e63-8357-aba6e86a8c39","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":61,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"61e8d62c-cab1-47f8-90b6-0c48eb4c8c66","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":61,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"e4c20803-f663-48ab-b302-c845f46f7eb8","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":61,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"1c202640-be62-41e3-9789-441f35f0db66","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":61,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"a946a0c4-1534-4b84-8469-dff0e2ade7d3","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":61,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"7fa99c4b-fb44-4580-8142-3b6ef972fc49","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":61,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"93094ba6-5973-46b4-a4c0-f58dbde118b4","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":61,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f8acc42e-04ed-48cc-876f-71335dd162ac","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":61,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"6cd19ac7-15d9-43ea-9e6c-bdec6ba005b4","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":61,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"75c2786f-732a-472d-a223-b2f82df65c18","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":61,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"87b607fc-747d-416c-a083-6234f161df65","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":61,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"a55e3f89-785b-42eb-82ef-84eab0dd2ac0","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":61,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"4031e1e4-a3d3-406b-a482-ed1bef3a61af","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":61,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"ff5ab07c-383f-4172-9495-44ada0869c16","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":61,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"89057f23-2d55-4dee-9696-8888e0de243a","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":61,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"bf874822-e5b8-4e55-883a-1fa4f13f3394","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":61,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"a810427f-853f-4b90-bd92-53e3e6a8759c","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":61,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"ea45aaf2-75bb-48ef-9d56-6bcbade47c59","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":61,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"61eb3b7e-38f4-4a82-af28-ec23986ea284","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":61,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"cfec35ed-bddc-4656-b560-519da91f23f0","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":61,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"3617e070-ffd6-4b33-b64e-e49b683b53fe","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":61,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"6db2f01b-6c30-409a-9272-7dbd610a701c","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":61,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"6fa19142-1fed-4390-8ccc-1f3602615e3a","block_type":"box","text":"conditions.","page_number":61,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"2ae17a53-4a38-47bf-98f4-188de12bc625","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":61,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"b5a70ca9-2c32-465b-8ab4-e0280ac3e37e","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"4a90a192-ebc1-4a57-a1c0-a73dbbfa820b","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":61,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"afe6427a-e4ff-43ac-a391-0d41dc3990b3","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":61,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"fab428cb-8c1a-48c3-b717-137bd4105801","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":61,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"590fa7d7-d7f3-4626-82af-29b4e6ef9d06","block_type":"box","text":"II-18","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"421578df-a601-4727-9c13-51a380d54a3e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08285923-d70d-46d2-a72e-58e3e67cfc7e","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":62,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"dca57f68-b30c-40df-9cc3-11f609e4fd14","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":62,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"1d4184aa-6a4e-46c8-90a3-6a16a973a94f","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":62,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"9de70caa-7751-44e9-a2d5-50cc408a3727","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":62,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"f82fafea-cb79-4abc-be66-1730126659c8","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":62,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"d2b04447-c272-4b70-8163-7d07f110bedf","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":62,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"95439f26-4d3a-4cbf-b710-e2e2545ea41e","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":62,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"67f1f35f-6458-43b9-81c4-04eb425ed7f4","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":62,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"15d0948e-8514-410e-ac19-ce12422a79a6","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":62,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"e006b377-b005-4b1f-897d-a4a10ade6102","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":62,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"2fd92ddc-9723-483f-935f-ac433f8c93a3","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":62,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"03144991-0234-48cc-b8f7-9002d39a5943","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":62,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"8ea7637b-1c71-48fa-98b1-4f9adaa7a986","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":62,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"320f8a30-c9f4-43bf-bfd1-d1fd3cf330eb","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":62,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"5265d7a6-c970-439b-994e-25aa8b7eac6a","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"2891d10f-2974-4a46-aa93-fe5c5e6fe381","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":62,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"93e6838f-ab27-42da-a586-e37c58b397be","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":62,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"78d3d76f-bf9a-4b54-ad70-a2e65316086d","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":62,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"dfd83a21-bc55-4ecb-bf52-0b68ca5d649c","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":62,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"f444d5c1-4a09-4165-a7f6-d1703eb9fd90","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":62,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"1605027b-2d15-4726-af8b-46ab7ad810a7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":62,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"5b317b62-232f-4e4e-a104-23a0b320e413","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":62,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"3232d2da-818b-4bcd-a241-c502789f7057","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":62,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"1809e9d5-52c3-49ea-92fc-16f7b468667b","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":62,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"d2345c7c-68a0-4de9-8e82-c65bcf3fb857","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":62,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"1b5e15fa-9019-4f97-badf-3035ed810c9f","block_type":"box","text":"cleared interest rate swaps.","page_number":62,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"100776a8-0ebf-4ee8-896d-b1bcf96e3050","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":62,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"1ff365c6-3f81-4236-aaf4-3e9b822e143f","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":62,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4989131f-b4fd-45cc-a221-b4762d66609e","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":62,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"911cf42a-6be6-4c1a-b186-533dfeadc3db","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":62,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"f2518d6b-1efd-452c-bf25-62eec9267806","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":62,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"6e0bf1cd-119c-432a-b2b3-e64e6a4cb653","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":62,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"35939e0d-1736-44da-bcc7-9c3a4962ccb0","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":62,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"9b4092cd-3b4e-49c3-bd83-608d3f29929e","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":62,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"0ff82905-2460-4abc-a987-090233fbc101","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":62,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"9ea7a77c-54d8-4cd7-b74a-f499f29123d7","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":62,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"2c4e28f6-165d-4918-9592-891d8bf4a491","block_type":"box","text":"or variable interest rate, index or asset.","page_number":62,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"64a759b4-c635-4354-b666-d0ce4c6597d1","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":62,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"80301b94-fed2-450d-9d06-85188e034cf9","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":62,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"1a87eaf7-7e1e-488f-b2f2-a958936c75cd","block_type":"box","text":"such interest rate floor.","page_number":62,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"8e0432be-7aec-4d48-bc8c-3bb4cd43c4e3","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":62,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"078830ce-23e3-46c8-95ef-6c99661db00d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":62,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"b60349d4-7ee9-4bda-a6b5-59e436724ca4","block_type":"box","text":"such interest rate cap.","page_number":62,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"2ee6b5d7-0530-4f75-83b5-9793677ad317","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":62,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"4e99d910-0463-4002-adf5-993083eadfc1","block_type":"box","text":"commitments to pay or receive interest,","page_number":62,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"522ef2fe-6c0c-4b47-89e7-93bc7d351483","block_type":"box","text":"e.g.","page_number":62,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"91a7d1ea-8911-4746-b509-66b746f938fb","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":62,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"5b70bd82-c98a-4b5b-8062-7dfa9a7c70b1","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":62,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"4b21e005-1215-4650-a580-0ef79d2a6d40","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":62,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"5d03f921-1729-4d6a-9314-cb72a308df41","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":62,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"ccc1cec1-22aa-43b3-8f4b-458ff571fc8b","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":62,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"3fb0782b-e13c-45c0-9e4d-afed26c145ea","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":62,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"bbb9e2f1-7931-44df-8a1d-c45140d7b90e","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":62,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"547b69a8-e934-49db-899e-dc86f103fad5","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":62,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"4ef594d3-8a25-4b18-891c-9e17985239f2","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":62,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"3d3757fd-a80e-441b-9d81-a914ce969faa","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":62,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"ae74e043-aeb4-4336-8ced-9e7bcd656d81","block_type":"box","text":"II-19","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30e4130b-f275-4ab9-8897-a53dad9bf6fd","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f1c5f707-a731-46ff-a173-bf9303bdd9c2","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":63,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"dc3e8582-7332-4ea3-a208-f4772e835bc0","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":63,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"284e5444-7a94-4b7e-b6ee-8f90966333ee","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":63,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"2ac38502-8c48-45f9-8dd5-141cc949ac22","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"11672dd5-0807-45f4-a988-cbcb29e69711","block_type":"box","text":"Total Return Swaps.","page_number":63,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"781ea753-ed4f-4a94-83d8-01716f070c2b","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":63,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"cf049c88-c6fb-4c9c-8b5a-2580829f5366","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":63,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"5e18601d-3b1b-4aa7-990e-2660be9c06d7","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":63,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"93d78bec-b9b5-42bd-a241-a76caa321a04","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":63,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"2cfe367f-6d53-48a3-82d9-d6d868ee15ec","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":63,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"9a572d23-a100-4e83-a8c3-a27326898be9","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":63,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"0c837f73-032e-4afb-8d85-0a7303f51daf","block_type":"box","text":"“contracts for difference.”","page_number":63,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"0cecbac5-2908-44b6-9e1e-401237219fed","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":63,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"a5c18dd9-8980-4aee-9c6a-540a59abe91f","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":63,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"6f2827b7-1545-4b28-b9ac-17d9679b6de3","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":63,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"c78fbca3-22ed-4c8c-8e66-a92c05cc175d","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":63,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"9ed7f5c0-87e7-4c4a-af88-4223ed7f3242","block_type":"box","text":"the notional amount of the swap.","page_number":63,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"4f689635-a91a-432b-b87e-c5362c01dbf0","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":63,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"e2996d64-924b-4726-876f-929bb135809b","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"7eb0d043-5816-4f9a-bbd6-0ca51f597275","block_type":"box","text":"Options.","page_number":63,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"9e771ce0-806a-4931-afc5-60b8a3cbbfe2","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":63,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"d3a573a4-3e71-455b-b2d5-c3cc7870ec12","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":63,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"d3274ab7-a651-4ebb-9899-8c3c1dd05f93","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":63,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"d7c5ff7f-9833-442b-afb8-4f80d2cddf96","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":63,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"578f1ca8-2348-437d-9b4f-33cac463309b","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":63,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"508a5c41-71aa-4c1a-ba99-112e83199e06","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":63,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"f0698373-5c55-4fd9-b0a2-e5db616bd018","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":63,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"f8320a95-0f72-4603-a29a-1d461e6fee75","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":63,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"4ed7e9d9-7654-406c-92ca-067714a7b09d","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":63,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"793844bb-5d51-40f0-8ed4-43569193e2a4","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":63,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"80a760b9-78c6-46ba-aa1b-7665e7f705c8","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":63,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"fe2de3b2-d9c6-44eb-b0b7-3cc61cd0805c","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":63,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"d2376dd4-d8e6-4da4-8760-53849aa1c269","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":63,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"8ff2595c-2306-4c6a-9143-6072162a354e","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":63,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"da9ebc89-3617-44ba-8107-100a8e9eb515","block_type":"box","text":"OTC markets.","page_number":63,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"ec7dee38-ab13-4ddb-b8fa-abe0269ddd8b","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":63,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"6bc93bdb-6e95-4f77-8f01-1a995042ea14","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":63,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"5c89a83e-d787-447b-9e58-a4def71ed461","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":63,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"935fe4d1-c6f9-4258-b694-d138026a6c2d","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":63,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"4d7d51bb-21bc-430b-ad54-19bc795b1c1b","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":63,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"3a35e3bb-4887-4d81-8f9f-612143584d1c","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":63,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"94b04d70-dcc1-40d2-b621-ee0e660a5085","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":63,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"ebca4ca1-63c7-4bc8-ae71-2b415a39e243","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":63,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"a31c94d8-f79d-419b-bcc6-114fe37fd6c9","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":63,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"a89a782a-c9ac-4920-b1e1-ef2dac4ad55c","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":63,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"38e2d924-fe0d-45cc-9ce8-7cbacd4e3797","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":63,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"68a768ae-ef71-443e-84c0-91415f3e0b23","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":63,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"d1c40068-34fa-4d13-bd35-a295195f6a0b","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":63,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"15216bd3-60f6-4a94-bb0f-2cae7f40b202","block_type":"box","text":"terms.","page_number":63,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"b0896a0a-aba6-4489-8e63-532859225807","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":63,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"8ce6281b-6b0f-47b6-94cd-1fb7c45da91a","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":63,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"04163986-3426-4e1f-b063-3e1b5eee35be","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":63,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"bce2ee99-2db2-496c-95da-101e4589308f","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":63,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"7e3ea23c-e4e3-436a-85ae-2fe88ca20031","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":63,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"0f44f6a6-ec1c-4f88-8bec-730db85642cc","block_type":"box","text":"II-20","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"625639c9-e30d-4361-beb9-3498f5295c73","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e2e389c-3deb-4d98-9e79-496da635839a","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":64,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"6f1e35b2-7b29-47ef-ad89-a14f3197f8e9","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":64,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"d6c0c576-fa44-4ded-a1ec-b549860d50ed","block_type":"box","text":"Call Options.","page_number":64,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"7a74bdde-f2e3-4389-9068-3cfcc20a5e3f","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":64,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"a718793c-1f6d-40d1-8b0a-9833a9a8767c","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":64,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"26b59e46-68be-4397-8a3a-bd66bd9d2c40","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":64,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"9f151796-2b3c-482e-8cb9-8416207bd200","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":64,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"6f1b3dac-75ee-45f3-a85e-5ba45a5714a4","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":64,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"79c682d0-b701-4720-b5d6-370d56eb4695","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":64,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"5073fd3c-e251-4550-9133-1514008f3904","block_type":"box","text":"of the option.","page_number":64,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"7a92d0d2-f7d3-42d2-a6ad-6c63987eeadb","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":64,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"67bdade7-7b48-452e-863d-f92ec3c24c9e","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":64,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"79bc20ab-a8fc-4104-aaec-087a7ccc404e","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":64,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"fcc82e59-bbac-4973-b40c-0a4f0c65a1f7","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":64,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"4b0d2af3-b4a7-4d0a-8ea5-98b0c7510981","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":64,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"c26b0e36-7182-48b3-b8b8-9533a5e2d038","block_type":"box","text":"A Fund may write (","page_number":64,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"061fe05a-4f2c-4de5-be6a-3fd5f16bdf62","block_type":"box","text":"i.e.","page_number":64,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"52f41b30-f961-4194-a464-6fdf04596ef2","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":64,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"e7e62862-313f-4dd4-b4e3-5b797246909d","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":64,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"e37ef636-8472-491d-9787-47d79ae5c946","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":64,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"5df4d8fe-e851-4c8a-b5f4-199489b230fb","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":64,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"c834c19d-592e-46b0-8b42-bef131175d49","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":64,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"25de07a1-55ce-4aa7-a2aa-4c4b0dd9722b","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":64,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"d60a4fb3-ca16-487e-97da-bf8055b0668f","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":64,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"6d880a30-b615-4444-bb86-23a37b02347a","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":64,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"74f2487b-45e6-4cff-a3d4-94abff9caa7f","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":64,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"70382a91-b756-4977-bf6f-89e71d99f6c3","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":64,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"0ad48c77-d436-4a82-a732-71ec78f429d2","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":64,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"7e2fcf83-37c5-4956-8f58-59ff3e5ec374","block_type":"box","text":"A Fund may write","page_number":64,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"a52ef290-c36e-4565-89ab-814621b356d0","block_type":"box","text":"(i.e.","page_number":64,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"b75796f0-f77c-4f51-924a-a732dc829753","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":64,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"b5611ddb-b907-41af-aae9-ab3e78f6063c","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":64,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"3b52c9af-79ef-48bd-ac26-e1cb51ffbaaa","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":64,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"1accff1c-b6fd-42b2-a131-e80c9170edbc","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":64,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"76130460-a74b-4b0f-8266-d7234453bf29","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":64,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"25d8e429-f2b8-49ef-a43b-61437f12b237","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":64,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"6519fbca-752f-49ed-bcda-0e93bae596d0","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":64,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"52aef971-3491-40d4-b9b9-e908d57eb92d","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":64,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"4f78c5cc-813b-4db8-b9e8-36547b138fc4","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":64,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"6a0629cd-61b0-49e6-bec5-86f0e92ced5c","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":64,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"a93ce563-e29e-4c46-97ea-460ddda478e0","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":64,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"7692e371-b46d-4731-91fd-cfba9eab548d","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":64,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"40d8268b-4837-403b-bf69-caf0b8c89cc4","block_type":"box","text":"Put Options.","page_number":64,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"647cbc80-2ff0-4b60-a8af-8006cd3461dd","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":64,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"2a34a01f-813c-44a6-972d-d9b824f416ef","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":64,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"080a1f05-8bd3-4437-aae0-f08fde8ed94a","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":64,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"d9b5b6df-e9df-44c2-b558-79c3a1e982ca","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":64,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"50805161-f805-49b0-824e-b44a5134da5d","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":64,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"4d089244-b164-4d77-bb10-a6e013418957","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":64,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"63edcee8-3ed8-4dc2-8992-b4ed88e88a93","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":64,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"69591472-85c9-418e-b385-91179c080e66","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":64,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"76591981-11d0-4ab4-a4dc-5e279e20ff50","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":64,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"400fd604-70f5-4bf7-a2f4-210fcb123c9c","block_type":"box","text":"purchase uncovered put options.","page_number":64,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"87fff491-83d6-453c-8175-1274e2c086c7","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"b8dd709e-7eb6-4103-b8e9-afdd9211b20e","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"c4953fae-3d75-4984-a17b-fb46fab9b9ff","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":64,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"4e540645-5b5f-459d-8c5e-5d2353124210","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":64,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"460e9f71-d064-4f57-b2c3-92bad8ad0435","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"d7c35a1e-ab1f-4bc9-bd68-440c2027e7a1","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"3e45eb36-a0a3-441d-b977-d82f4b9fa64b","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":64,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"987d6677-e0e6-411c-9bd0-4369f300dcb8","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":64,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"b693f995-9ba2-4f45-9364-a6b626b6c64e","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":64,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"b0e0d4b2-c102-43cc-85a7-bd1e10f77f64","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":64,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"82550383-d19e-4043-adea-d5ae996f9f90","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":64,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"d071c54a-92d5-4723-b4d7-2b40b97db4a5","block_type":"box","text":"II-21","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a417c91e-517b-40ec-a844-006be967c0d1","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f92104b2-02bd-4914-8576-d1e8282de9b4","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":65,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"725b4dd9-b38e-45c7-9190-01f88489fb7c","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":65,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"33cf9b9b-71c4-4250-bf97-a7368199be8c","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":65,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"9bc4aed4-5390-450f-aaa7-ebecf10ec7af","block_type":"box","text":"the exercise price.","page_number":65,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"a6059f42-2a3e-44a1-847c-2ce6c2d43915","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":65,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"2f27fc19-aeea-4b45-a99b-2e995959d2f7","block_type":"box","text":"The following information relates","page_number":65,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"67624a7d-3324-4408-8701-a1d4a1943c1a","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":65,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"dff6b6b7-5541-43d4-911b-b7cc951bcf17","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":65,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"445eb189-db70-45e5-bb81-1596013136b8","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":65,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"730c90ac-3562-4d2e-b53e-c8ce0a4ed384","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":65,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"8a04756b-55cb-47e5-9ff6-17e3fa282d5d","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":65,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"03192c98-6531-41ca-873a-176b485abcfc","block_type":"box","text":"market in order to maintain its “cover.”","page_number":65,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"b85e6170-4d38-48eb-9a78-31aa731d48fa","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":65,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"93a15196-50ab-428e-938d-84b36daa2cd7","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":65,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"4a4232ae-7ae4-4257-90ef-8bd97427d179","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":65,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"489cce33-4371-4438-af6b-4b14056e8c4a","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":65,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"79862720-7263-4ed1-8c52-c6f8972d6d8e","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":65,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"04398450-267f-4e8b-aa65-54dfc4a70c5b","block_type":"box","text":"and incur transaction costs.","page_number":65,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"f49afa81-ee44-4930-a804-9ac7409a0891","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":65,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"c899f034-9df1-41df-9399-d077186b50ad","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":65,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"9f62ee12-ef5b-469a-9f36-ba40bd4b67b2","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":65,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"c74c5113-3f30-4e5c-9c3d-22a2cab34ba3","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":65,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"256cf41f-b845-454c-a741-188d4d0f8ec9","block_type":"box","text":"i.e.","page_number":65,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"64a2f3f5-18b4-4f95-aabe-08a187d3d0b0","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":65,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"cd4492c6-17f3-48ad-85e3-f51f68fb094a","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":65,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"724859fe-c6f1-4496-85f2-0e9742aaa388","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":65,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"45211319-fd3d-436b-a399-ba42051aaa96","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":65,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"f74877c8-8e34-4dca-9fa7-5d2a18063095","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":65,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"d5e6735e-46c1-4dbb-abd8-872efdd6f72b","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":65,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"7ed0dc9d-a3fa-41be-a5bd-66df248ebb02","block_type":"box","text":"required, to be cleared.","page_number":65,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"298c0603-1976-49d0-91f6-7d33bce4584b","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":65,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"d93cb1fa-339a-4231-aa68-f64dffd363a0","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":65,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"6fea87b9-e9ee-42f2-b237-572cc1a0b329","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":65,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"1fc496fb-f9b5-416f-983d-c0e16ef79924","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":65,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"f17aad29-50f5-419a-989d-39e988e1e0b2","block_type":"box","text":"Derivatives” above.","page_number":65,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"386956bd-add5-4694-9557-be4cd2271666","block_type":"box","text":"FLEX Options.","page_number":65,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"00facc6c-9676-437a-8732-da5e7dcf180d","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":65,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"fb64ad69-1aa5-44a0-978f-5bf761405ca9","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":65,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"8e069a3e-6c08-40d1-9171-4d10c78305bd","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":65,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"d61ff956-6f37-4cc2-9a57-c078e9d1880e","block_type":"box","text":"exercise prices, exercise styles (","page_number":65,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"eb4f1495-111a-451f-9581-77692dfdce72","block_type":"box","text":"i.e.","page_number":65,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"ef29fde7-3e6f-445e-a478-931d9bb570ff","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":65,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"84e55f3c-1857-4651-9e25-e93b1cae6ca9","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":65,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"af5364b9-0c77-4324-8965-02f0bd2df89e","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":65,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"d63fda0a-5044-4722-9e3c-094baa6845ab","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":65,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"7695f3f0-92bc-4880-8cf2-e414928f89e7","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":65,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"17c3e22a-544d-4a9d-b999-b3423b47986f","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":65,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"bde11aca-9b36-4f76-8673-069f8d7e9278","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":65,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"d0b0661a-c7e0-445e-8f34-80381b15c3e0","block_type":"box","text":"FLEX Option’s expiration date.","page_number":65,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"3623508f-7388-4623-b2f6-2556f44a2d35","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":65,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"7ae3cefc-fbf0-48e4-a475-307d36fb7e35","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":65,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"0a96cf2f-8ba4-403a-995c-83c768b41c34","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":65,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"946e52a4-2a52-48dd-99ee-4e8f0213ef74","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":65,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e0a011fe-b157-47d5-9f1f-7fb4dfc60294","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":65,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"96762531-ee98-45aa-8ad7-9a24ef5e0eff","block_type":"box","text":"FLEX Options contracts.","page_number":65,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"afc5cb46-e80c-456d-927c-f38be78c4371","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":65,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"65b5a422-b023-4b06-8726-5721fa34686e","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":65,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"2067639a-875c-4855-a2bf-2eea1df35043","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":65,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"8ec66b5f-b714-4d51-82aa-97a08b38d5af","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":65,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"d92c71b0-9636-4913-b6d2-40c32246a185","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":65,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"2369df6d-f8c7-4e91-8f87-17fe40a8e9cf","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":65,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"e5c4aba4-f16e-4955-8059-ae0e3a34d2a3","block_type":"box","text":"II-22","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e327d99-430d-4db5-9163-151ec90eb100","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19a7e484-bd8c-48bb-8252-ed78ea97ac78","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":66,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"9af103ae-f903-4118-8b8c-9d16dbd9bf0f","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":66,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"ce59e4ed-6231-4d77-b9a1-a2d74b8e04fb","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":66,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"960c3bf8-6c2b-4e07-aef6-93fc4d4867f3","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":66,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"a856245a-42f9-4ce2-bd1e-6a3baccf319e","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":66,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"f130fcad-110d-47d1-80d0-ec9ccb56efb6","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":66,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"b58f829a-b433-4dd2-a0b3-c932e8559c0c","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":66,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"a68746af-7ebc-4236-99dd-70d367f60747","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":66,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"9dbef7b4-41f3-4cb7-8cd5-a57b860de0b5","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":66,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"c27fceae-d233-4d68-8bfc-fb076d5d0208","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":66,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"3b104bfc-1210-485d-8977-7d91773d83da","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":66,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"43262fb6-7c7d-4e1a-8121-250549f43f0c","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":66,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"51cededc-5bd5-4b10-a60a-37000e4f6eab","block_type":"box","text":"expire unexercised have no value.","page_number":66,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"02450f0a-3334-486e-bcc3-82aaabffc628","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":66,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"b52f87c1-df65-4886-b9b6-00b2e582a6fd","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":66,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"36169a2f-8929-4ce3-90af-c9f305ee207c","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":66,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"486fe076-aba2-4204-bc89-cf02bd877aea","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":66,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"39b75769-09da-4e77-b367-2738ed314e5f","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":66,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"b807921b-e87e-408e-b485-73838ac6c262","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":66,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"e629222d-92be-4e16-9077-f0846e1c74a4","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":66,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"00149123-19b0-413a-9d71-46b401390d09","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":66,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"9950be33-65ac-4588-befc-bcbe363d35a7","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":66,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"9e4cf572-df25-4e2d-9b28-e617713fdbf9","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":66,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"bb79cad6-045b-4e31-bbfe-62da953f48fd","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":66,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"d9a9bd33-33a3-40c0-bb95-5aa396bf4a1f","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":66,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"d1438674-5af0-453a-9581-63ca99e18993","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":66,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"2796128e-896c-4b46-9ab2-cb9ef810e8ca","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":66,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"cd281ba0-2c95-4083-9cd3-c6f8f146ce87","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":66,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"12c06c56-8241-43be-b63c-d4320f9f00ae","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":66,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"a82ca4a9-fa7b-4f07-8314-a523ba67126d","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":66,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"5b2e8c84-91c9-41c2-b26f-d902ec5f06b4","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":66,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"cf755f68-aa14-4408-a6db-b002a95d8dbe","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":66,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"49cbc478-9835-4134-8510-f168d33d3a29","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":66,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"4aa91c0c-f087-423b-b1bd-e3da65491956","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":66,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"30653f07-6f62-4abc-bce1-f90237205dc0","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":66,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"e0ab4a27-6fc4-4dae-abcf-456188bedf7a","block_type":"box","text":"Foreign Exchange Transactions.","page_number":66,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"645e2689-d3a7-4903-8c77-fd6e7a587c8c","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":66,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"9a299182-dc7f-4bbf-a58c-417ca5f09433","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":66,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"33257a40-d0ca-427b-a532-f2cd7ff3e965","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":66,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"c29813a0-cfc7-4901-b56e-03454a30e987","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":66,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"de17e560-2123-49f5-ba80-7a0ba67ddf44","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":66,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"a24a6e2a-cee9-4df2-9cd4-1a3a7fac0075","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":66,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"6c97b8ed-33c0-4c47-9f78-069bc5af54fb","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":66,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"226c4871-908e-481b-ad57-92b6ac8c4411","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":66,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"c590db11-ddfd-4f99-a48a-23110481a6e5","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":66,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"d5f5f0e9-8345-4708-beb0-a0d2553c6c55","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":66,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"a64f9b8b-36d8-41e7-ad96-2aea7629bcc5","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":66,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"df8b6df8-a5ad-4099-a4f8-05bc0dd6dc69","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":66,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"8e85ece2-825d-4b8e-ae52-22cad262312e","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":66,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"87664eff-e079-48bd-90ee-1d01eb248692","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":66,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"197f280b-165d-4919-aba8-6b2ed634a9fb","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":66,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"827562b1-a112-44bc-8a0a-fe25446e85fd","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":66,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"2ea934ec-85e3-4d08-bea9-44eb180261d3","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":66,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"319ba539-4599-4896-acf0-f21995372ed3","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":66,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"980ae580-1969-4753-97f2-07793953a5c5","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":66,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"af66df96-fe2f-4554-971f-585624f89c5c","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":66,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"8ff5d4b3-90ad-4d96-84a0-36ab027a9758","block_type":"box","text":"II-23","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46a19f38-e782-4405-aff4-b833ecd3cd20","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f84d5f53-d24c-405e-acad-58cfcf964c8b","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":67,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"f84d28b3-9aa3-492b-a247-d09af08bf530","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":67,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"b65304c6-9632-4ad7-a037-8420b9caaf96","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":67,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"cd3c67d1-671a-4e59-9f89-c513866aea4c","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":67,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"631781ba-360e-4528-b4a9-09ed544dbb88","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":67,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"c6e6b024-828f-4d70-bdcf-24a903237efe","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":67,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"b8428c01-288f-4226-893f-0a7d74bb75b0","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":67,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"955f24b6-fe5c-4ea2-9d55-26b6a6380555","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":67,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"42516df5-1db6-41fd-9470-e51d990b3b2c","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":67,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"d8175a69-14dc-4a50-85c3-2b878c4dafd6","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":67,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"30e466bc-e9a8-4298-a002-4e2235cbabdb","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":67,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"9350cdab-7efb-4ed7-aad0-6a9b140f2b9a","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":67,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"8f3fee50-1e70-4f51-b883-cda767db1cae","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":67,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"6e1b08ae-8767-4798-a581-5ea7f41d6ff5","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":67,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"4672eed1-4ab7-401a-b090-57929d325bc8","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":67,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"26f9537c-356e-4b84-b08a-1b0c72e1a41c","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":67,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"94b194a8-8dac-4e9d-9046-7e2f9ff2d71d","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":67,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"62f182b1-0c65-4e85-b285-906233010452","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":67,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"9d002c3d-efa1-42f1-ad13-2e3100815994","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":67,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"2e3768be-3f33-409b-a014-e632e416d35a","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":67,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"e010f20f-ab7c-4709-bbf1-59638bb4ec47","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":67,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"99c36c73-6678-4408-bd3d-91f540b3a5de","block_type":"box","text":"involved.","page_number":67,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"35578bb4-9f70-4fd8-b23f-c5474e594e50","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":67,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"ad261949-be99-4e0a-81f8-0bad83b455c4","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":67,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"e065e5ae-8c91-417d-8631-6b8df19442e2","block_type":"box","text":"denominated in such currency.","page_number":67,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"e5aa0013-e5b1-401c-8002-9bc25e90b7f8","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":67,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"a68fdb83-e73f-47bf-9a39-fe0babc01632","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":67,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"c31e0c8c-ec28-4215-a616-f172b19f828a","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":67,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"ec85368e-2060-4cff-94fe-b16c9e937647","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":67,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"5f90809b-f306-429b-a50b-86fcf50a26e6","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":67,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"c1811e02-f48e-4368-bbda-0536e8cf41d8","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":67,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"7d1e35a2-aae8-48e4-b8b4-3e2226879bcd","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":67,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"9585cc00-6663-4021-88dd-84d24ed3e442","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":67,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"bec384ab-6b8c-4c75-a6bd-531345a51954","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":67,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"64780380-0b71-4687-ba97-7ccdf031092c","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":67,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"749ef558-b33b-438f-8fe1-6d00c7c0c30a","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":67,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"48ee85f7-7bb9-48df-b465-240553798cd2","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":67,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"76fff85d-5e46-4c66-9211-51b08d8143bb","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":67,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"c3074c6e-715c-47be-8156-bfdc1705d940","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":67,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"2bbcd143-41ec-4b6a-8b4e-23934f40ac7a","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":67,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"a0fe6a25-07d5-4dfe-98fa-a90ca8a2163e","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":67,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"23c5f7e6-7014-47e9-9505-fefa2276fd2e","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":67,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"e8e30b75-4a5e-493f-95a8-5508b5a9688f","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":67,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"cc8fb110-7b40-4bef-a46a-4d9d50d3dda2","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":67,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"638a054d-ee5b-4b8c-ae27-339af718fc6c","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":67,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"1d8c6556-dae2-4fe9-a4de-fdbedf7b40b0","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":67,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"f6b18a8b-30bb-4c46-ab37-0e32c0372b6b","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":67,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"e6a863c5-7816-4666-afb2-c1456647601f","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":67,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"a34eedab-46b0-45b2-bb1b-b6564ff026d8","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":67,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"882e9323-fe52-43b5-837e-1567dec6e8c9","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":67,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"13772a32-1a9b-452e-a0be-4194c9105046","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":67,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"e15555a7-086f-4d3d-9042-b32449db38cf","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":67,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"661c4a57-286f-41d5-b13c-bf7d9e19c196","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":67,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"8c5067b1-97cd-4c08-ad87-2726445e7b14","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":67,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5464f7ca-6c4d-4e25-9978-a8d00e2d73f9","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":67,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"1352d7d5-c3d9-4925-bf29-62650617074d","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":67,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"5bf85aa9-3c3f-4c76-bad1-8e7064042a34","block_type":"box","text":"II-24","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"269ae605-2cc8-46a3-b49d-4a5258ea5468","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b50547ae-5c03-4d60-b188-004f587cdb55","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":68,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"730b23c2-adad-4ec3-a807-6c80fc9f2549","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":68,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"e079f75c-b21e-44db-8449-72fcc0acc8fb","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":68,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"8befec09-e299-4649-8df6-709ce4ec3330","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":68,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"7e316a19-d607-4d96-9e85-680fa710ba01","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":68,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9d3c5b78-41cb-45c4-8833-2dc610b071f2","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":68,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"28836896-dc9d-43a4-ba4a-a266ef3bd000","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":68,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"d31f6e73-456d-4a7d-84c9-0ce4fa8a6863","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":68,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"826893ad-d7be-4a75-8f52-37972abc470e","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":68,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"7a72a9ac-3742-43ee-b484-45528de7bed1","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":68,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"d6239930-22c7-4b20-ab3a-89265237f314","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":68,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"5f641269-c163-4b32-af32-b29904525754","block_type":"box","text":"traded.","page_number":68,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"03a8eb21-e16c-4fc8-9084-923812dc890c","block_type":"box","text":"Currency Futures.","page_number":68,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"294ace25-f5a6-47f4-ab7a-907973080538","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"aec14a71-2e13-4bbf-9cf0-908118db6db8","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":68,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"f79cda3e-ad55-4d1d-acf2-8923ddbda9ed","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":68,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"2b7c145b-5919-4b26-b639-d36cb74722a1","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":68,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"814b3383-bb1a-4c23-a096-bfa72482ae16","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":68,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"ccb2088b-c407-4fff-864c-45abbe643a57","block_type":"box","text":"Currency Options.","page_number":68,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"d56d173f-36e4-4243-a1bf-24635b8c91cb","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"a5ee2ea1-6524-4425-8776-c8d7f4613308","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":68,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"d52aa95e-e0a9-49b7-b636-c7e5347c3769","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":68,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"0efa4220-2938-4982-b1f8-075e19e93778","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":68,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"891fab01-fa83-47aa-a70c-b75b164c929f","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":68,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"4e23bf7c-b78b-4476-bc50-9f8f8af249c5","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":68,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"db8ecf20-5398-4cf6-bcd0-6e462bdd343e","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":68,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"91ec01ed-7500-41e5-adf3-0e97190b9921","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":68,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"6c563e16-2bfd-45ab-8a9a-49d60d8c3646","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":68,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"8d65d13a-cecf-4f91-98fc-63b56a9e5a29","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":68,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"8b2d69b4-d95b-4c7f-b179-c8cda14ac4fa","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":68,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"4aa54143-a74d-43dd-9269-c8cdc40665ae","block_type":"box","text":"Currency Swaps.","page_number":68,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"d8a04036-d6b1-429f-a099-1dadb1179923","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":68,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"8d44026b-e545-44cc-8f26-518c5129485d","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":68,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"77af5bc5-fdd6-4825-935a-47c91e8c139b","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":68,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"5b0e021e-1db2-48d0-ab2f-b1319bbb5316","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":68,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"a0d03085-b726-4873-bec5-8a5deafe3c47","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":68,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"38b7d775-a0b8-4e9e-a3a4-1fee902f8d0d","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":68,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"68386e33-3ad9-4a7f-a0df-ab5d8ff050b4","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":68,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"a773c205-c52e-497d-8dea-474823081ae1","block_type":"box","text":"Distressed Securities.","page_number":68,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"9a04dee4-6d29-4b37-a95f-c468d99efd60","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":68,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"70dab01d-5c5b-4c24-ab94-ffa2efb0ae01","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":68,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"38e37bf6-065f-44c6-a5c7-4b7ed261eb83","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":68,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"0c625ba2-98f8-4636-b838-c4c38dc9f625","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":68,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b9e67b1d-c29f-47c4-a5c2-1678c06037ad","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":68,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"095a0f21-b330-48fb-bf72-03a1d5881880","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":68,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"93327a96-dfdf-4176-baeb-cd7217b0db63","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":68,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"1628e396-48c9-4b11-a8a2-4865e11469f1","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":68,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"9d801020-3692-4ea5-87b5-3e54d729cd17","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":68,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"5fa564e1-dd67-42a0-af5c-e9ffcc34aa42","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":68,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"b111558d-2df9-4930-a063-0f5e86ac8779","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":68,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"e3f0b39f-d153-4832-989c-11e5ff968111","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":68,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"d88ac924-18b1-4ae9-be56-8b31098617c3","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":68,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"81870fd5-fbfe-4550-bf20-14b2c7aee47b","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":68,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"c2718590-e29b-448a-aea7-95caa0d34167","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":68,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"fce9c794-e03a-4ef6-9ff3-6e7ea2fdd4fc","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":68,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"cd770a6d-e285-4981-82b5-daac1ee04897","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":68,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"d514c224-8986-4d88-8dd4-de479529ba10","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":68,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"7665233b-13c5-4018-943a-edd4b0dd95a5","block_type":"box","text":"satisfied (","page_number":68,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"a09e1f12-9815-4bc4-a75a-81b59b448c05","block_type":"box","text":"e.g.","page_number":68,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"d1ada4b4-4ed1-452b-a692-eb3572ab464a","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":68,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"16616237-fdc8-446c-9294-6524c44457a6","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":68,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"d48514ec-5796-4cdb-a8d7-92ce6d6b550b","block_type":"box","text":"II-25","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3827af86-b961-4c81-acdf-0c1b9fe11076","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c7f45f8-1887-4ff8-b438-48dc98fab0c3","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":69,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"b1091f40-7dfc-447e-bb53-fbf1379c84a7","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":69,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"8e98e202-9f79-4e0a-990c-1ef3f84ee0da","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":69,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"c66fb0c7-130a-4a5f-bced-74ed9c8829dd","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":69,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"3f19a8e5-7f9f-443a-b4c6-673ba84307bf","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":69,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"da54be69-27c6-4a75-b446-49447bfb111d","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":69,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"8a4b0a6d-f4fa-4d4c-9b49-8a5324087baa","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":69,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"2aa7cd9b-294d-4a84-abc3-42ef82646ed2","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":69,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"31b47848-1f6a-4144-9b29-f6fc4274fd14","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":69,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"5b1b1d0e-9131-4c10-9cdd-a05d55b93bb8","block_type":"box","text":"affairs.","page_number":69,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"74586e07-c429-4817-b082-74a2d60aaf0b","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":69,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"6cf42919-7899-4082-ac56-cd780926e4e3","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":69,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"bc5700e8-aaec-49a3-9138-75ac0fc1bd79","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":69,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"cf11ae74-3e04-4177-9af2-a224987435dd","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":69,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"eb2b2775-3727-49df-b8c3-afcd5485fc49","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":69,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"87412bef-d6e5-4081-8c8a-6fce674fd432","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":69,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"cc01799a-037d-485c-b010-e217924d0ddf","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":69,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"e4cd2c36-b459-4ae2-a6a4-56251ebae707","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":69,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"3d802296-0039-47af-ab76-1d0978b0c26f","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":69,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"dbac3087-c5a0-42af-8ff8-b863fc64f8bd","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":69,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"bd582c16-9b36-4a13-9696-b671ff305a65","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":69,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"99240fd2-af8b-4c50-95ea-aa784da93719","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":69,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"05168a2a-8cd5-4cf0-bcd8-2c4bb61d168e","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":69,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"ff4d9081-b97c-465f-9b9d-24c7f22b27fd","block_type":"box","text":"Equity Securities.","page_number":69,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"55a34e6a-c1df-4c45-9fe5-394f65d2295c","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":69,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"2e0c9ad2-74f9-46ad-b1bd-2c360f7227e3","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":69,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"352d0169-11b7-44dd-9cb9-a3565a3374d8","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":69,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"9db89cd1-d2c6-4db9-999a-7b7e60f5f861","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":69,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"825fa783-0c57-430f-afe1-a57c27aa6360","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":69,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"56b2588f-c384-4b93-9047-83a40f201831","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":69,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"a00ce592-8136-4007-ab2c-0af38d2670e9","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":69,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"6ac8a9f3-53bb-49e1-aa70-6930393a1b2f","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":69,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"9900e08f-f868-465b-bf26-db90e293ebf1","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":69,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"ef5d4efe-5677-4de4-bfa8-55858ef1bb92","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":69,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"3995d250-eba7-4c91-b3d9-115b7baa6f02","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":69,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"b46e49fb-279c-4933-bc1f-fed990c0b6e2","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":69,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"6c66f0d2-a151-480b-abf5-17fde219640f","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":69,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"254f3ce9-19f8-4567-82bc-53fea3646b80","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":69,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"26d7b72b-b3a3-465e-b406-b583a9a80642","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":69,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"d14e6148-7bf1-44c7-8087-0019c9f78c80","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":69,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"87ef9f06-73ff-4fa2-abc0-663594250ea1","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":69,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"6f27aeea-2152-4c7c-847f-f22ac502b1c8","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":69,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"f08bbb0d-4536-413a-ab97-588fb42831b7","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":69,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"39fb0d0d-cf94-48b7-bc33-893d1a9c0f3b","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":69,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"f04d08f1-9c89-4cd5-86ef-3df54ed29b28","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":69,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"b391a21b-f702-4860-871a-3e8581d2c817","block_type":"box","text":"initial public offering.","page_number":69,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"4e39c9eb-0d8f-4022-b0d2-0e66d5f361be","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":69,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"2d7c77f4-aaeb-4f79-b1e4-30ffc9925e59","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":69,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"58c5a18d-fa14-407f-81ba-ef41b7bf2f07","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":69,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"ba0882d7-3f5a-4150-92b9-e190677617ff","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":69,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"ced0eb75-8214-4344-9f8f-8457a1a059da","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":69,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"c41ac1c8-c959-4b5d-8ff9-0b3df9b5c34f","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":69,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"d304eef3-7019-4576-bddf-dc1b31295144","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":69,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"65c2f530-573a-430f-9193-8d771983dbac","block_type":"box","text":"more established companies.","page_number":69,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"7c02adb4-34f4-4dfd-8b73-1ef0638590c9","block_type":"box","text":"II-26","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a82a49e-772e-4fe1-8b0f-eb613437a120","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c34de063-6843-450e-be0c-e57d063d28cc","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":70,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"96560645-58fa-4a75-8ccc-b28f4bf7f4a9","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":70,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"d7b36283-aa76-48ee-a6d8-f5f34113c899","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":70,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"31b7201f-a46a-42a2-b67a-4cd7722c6a52","block_type":"box","text":"below.","page_number":70,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"30ca7b28-2fff-4e4e-8248-9fcb34ff498c","block_type":"box","text":"Real Estate-Related Securities.","page_number":70,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"b5057e29-309b-44a4-aed0-bb2dfab541dc","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":70,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"96442af0-d5bf-42d1-bb8c-933a2c5c3819","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":70,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"2821fe6c-2871-4d1b-b020-38feb3f43ecb","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":70,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"4dfd808b-5b18-46e1-ab14-688517be7491","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":70,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"66bb44ce-dcd9-4085-ba51-20db64c578e0","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":70,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"7f036412-7bf6-4fa8-a7a4-80fc8f72813e","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":70,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"34defeb0-aed8-46a5-bb47-a6a699a160e2","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":70,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"0a61475d-8016-414e-9ea5-f07821bb991a","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":70,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"012f76c1-be0a-416b-8e55-39b8fc5f6b01","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":70,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"837e5326-2075-4d1b-a19d-6c3ba73dfd02","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":70,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"2fce18e5-18c8-41a1-a7d0-79073129c460","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":70,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"4218e28e-749a-4dc0-90a0-59dc410aec67","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":70,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"e3e31f7a-7a0b-4e60-8bf4-74c142883056","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":70,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"ca4ca05d-b113-49e9-92eb-b262ffa569ad","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":70,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"0f015889-3ef5-4df2-941c-36e498f8227b","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":70,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"a96c6bfe-af6b-45b2-9c18-d7ea29487ca1","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":70,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"0a14dbd0-23e5-423d-9d20-1a19f7c62bd1","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":70,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"0a7fc597-8832-4f8e-a376-ac628bebaa83","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":70,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"4b877980-261b-4a1d-b56e-45612647f53a","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":70,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"fe51b6a5-75d9-48ea-8698-faaeb49fc4b5","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":70,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"e26559b2-0384-4b39-bcee-b83de6f21539","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":70,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"0c782527-66fc-4fa9-b98e-d4a459a615a8","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":70,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"c3f33b2c-06fb-4e31-bd4d-3abe0f16a41b","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":70,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"d2986edd-d076-4402-bcbd-e7edbdb50e3d","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":70,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"96000d16-1984-4471-9855-709f8c1f669d","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":70,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"7cada7b1-eb87-442d-9cf6-2437ca880081","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":70,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"f6386de9-45ab-40f9-b145-505a7118ebe3","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":70,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"48509b99-3ee8-49ea-bb23-a3d2d1f997ff","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":70,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"e38be2eb-dba3-4d87-b9fc-52641aeb932d","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":70,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"0167fdad-fdac-4474-8363-f6f3ba2f0754","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":70,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ace000fd-3792-471a-b5c7-168fd81a01ce","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":70,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"eeb08dad-1299-40fc-aa68-c99a1fbad482","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":70,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"8e0b903f-f327-4859-8d6b-c8b46debb269","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":70,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"2456edfe-c0f0-4429-9163-b225e97c97fd","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":70,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"0c71076c-c401-4aa7-ae42-a30daed352ad","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":70,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"e6a0bdcf-c88b-4654-8830-cfcb0d4ea361","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":70,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"e1a5e1e6-b9ee-494d-9f90-727c6f9875fa","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":70,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"8a4db715-c11a-4b02-95a7-42632beaff05","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":70,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"292483d4-efad-497c-abeb-99f6e369f21d","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"aa226b5d-2369-4b48-96d1-0507a987b740","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":70,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"ad0926d7-e6b9-473a-8ce6-d3c049bc809f","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":70,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"25315b9f-e27e-4e72-af8c-582c75b57728","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":70,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"cf98ec51-dbfd-4314-be1b-d342d8ac4dd8","block_type":"box","text":"cycles.","page_number":70,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"33389d26-f500-483e-bfd4-78667f5d6bb7","block_type":"box","text":"Tracking Stocks","page_number":70,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"34dd2813-5bd3-44cc-907c-635221f2f120","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":70,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"d03e4c08-f3b5-4f9a-9e07-06426e231d9b","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":70,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"3e3e216d-25af-42e2-9cb3-15a97f5777dc","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":70,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"92915b0b-da74-4879-b641-10a1fc881fa2","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":70,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"20a0d65b-d0e1-45f4-ab69-4d5214813c4c","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":70,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"d91e2f3b-0609-4545-9c75-37f63dd66ccc","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":70,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"2f0dc6d5-0d95-4709-9a84-4c0d30e5570a","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":70,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"5c5caf24-40dd-4c03-b549-6a4064a3f00b","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":70,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"5b109b10-d124-4eab-b583-600cdea3a5a8","block_type":"box","text":"II-27","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2894cac0-3bf2-4ae3-ac81-519697726c86","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83151740-0e34-4c0e-b75b-5171ea58fb81","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":71,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"91657039-7b6a-4cb1-acdf-31421161ce6d","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":71,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"5e390545-7839-491c-b72a-041d969354b4","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":71,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"a561c220-954f-4590-a600-59fa817b78cd","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":71,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"776ca212-6bd4-4b8a-8adf-a12e63947788","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":71,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"4b9ea65e-0dd2-4ad7-a198-d3f2e6896664","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":71,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"1dc40e04-c927-4483-9039-5eb6bf64b64d","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":71,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"d057f9f0-5689-4e7e-826c-f3c54286fe73","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":71,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"3d54f38a-511b-4831-a40f-5677e111146d","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":71,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"416160a2-0697-4416-8c99-11b186695d45","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":71,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"7eca31cd-ee84-43e6-832c-7159b3782b65","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":71,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"3447f6bc-a7e1-4c46-9e11-f9dcecf72db7","block_type":"box","text":"ETN.","page_number":71,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"e3f4703f-93bd-4669-8b6f-c9ac98e85f7f","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":71,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"cff9c0a8-4516-4241-8bdd-8aab508e4a6d","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":71,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"bb1742c9-0f76-455d-ab1e-46f6bc54ebe8","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":71,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"e70af3a8-60a7-4788-a2c0-981724765268","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":71,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"8638db26-b172-445a-bba2-6b5a6bf03572","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":71,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"a02b5e57-b790-4838-a087-3bcb13b6f99b","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":71,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"dcd3a987-f20a-4211-b519-864b2d14b413","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":71,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"7137ae8e-bc00-43f9-926c-2210f6c1c54f","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":71,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"f5d48021-ff39-4b53-9d35-f28e4d7b25b2","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":71,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"2e9aacc1-a52e-4c24-a9f4-a8a4f115d453","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":71,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"686a082c-1427-4477-b662-a60cd2e5c9fd","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":71,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"799bb308-fad4-42bc-a27d-9ea2e8f70ef7","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":71,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"0db11f29-4dde-48b9-89e6-cd7fa11c3f5e","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":71,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"5b5b2762-03c7-4dc2-af17-5a42c243aad6","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":71,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"da625208-cd84-4b6d-8490-7adb5b685d8d","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":71,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"105138f9-6b45-43ee-b00c-a892f103da9d","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":71,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"3a95aaa5-a58d-4066-ba6c-7dad5798e3d2","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":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"deee1034-36d1-4b6f-9440-58d5ab09b18a","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":71,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"52763ec7-d1b6-4606-9d31-b52e12e08417","block_type":"box","text":"Foreign Investments.","page_number":71,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"4a0043c8-c09e-4e35-a8c5-2340f7ebcb88","block_type":"box","text":"Foreign Investment Risks.","page_number":71,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c8f05a73-d82e-48df-a603-cab30e6dcf20","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":71,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"f0568878-b87d-4c76-a376-eb45fbce9313","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":71,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"269d4e77-6a46-4404-b260-d7a0167f7435","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":71,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"d5e9cf1d-0df9-4751-aeac-8b91fc926c61","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":71,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"f5d09c11-d17d-4846-b64e-694a6b302589","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":71,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"c18c361e-3201-4dd4-837b-3a3b474ae03b","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":71,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"6b786907-3579-4f67-876a-f0372c606793","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":71,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"bdfcd566-5068-42be-b0a2-1fe2357f16c0","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":71,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"c5e7a4f9-530c-4ec2-a83c-ab085d5c798f","block_type":"box","text":"benchmark index.","page_number":71,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"a4434c4e-c9b7-4768-99d7-789ca10e8c98","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":71,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"44fdcc86-d4ce-4cc0-9d92-64c4b924813e","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":71,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"d327d6a8-54bc-4934-b159-121d0c0a03c8","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":71,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"0dee0324-859c-4daf-836a-4ffb0b173865","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":71,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"3e789566-dc1e-4d6f-b218-afcfe39da384","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":71,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"a9e98efb-9742-471c-83ea-dd35540fc3cb","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":71,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"d65de00f-24a4-415f-a7e7-285da9cc9113","block_type":"box","text":"securities and zero-coupon securities.","page_number":71,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"dd9b5454-3e2b-49c1-8afb-85e1db8452b4","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":71,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"7d7fc346-d555-40d4-90e5-f3aa4a32d752","block_type":"box","text":"taxes.","page_number":71,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"0bc55728-4874-45d9-8c0c-cf16b95af8cb","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":71,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"fd131623-22fa-4e78-ad47-c3f567a81f2f","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":71,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"bc0617bd-babe-4d35-9862-3a5f1d568691","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":71,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"c873862b-1fef-4f4d-94ef-492dba8f614e","block_type":"box","text":"II-28","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1bf0954d-3dac-4268-bb57-5dd83515904e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4cfc1520-b302-4811-b7b1-e569a1ab79aa","block_type":"box","text":"underlying security (","page_number":72,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"f78e5c97-ffa1-4954-bc1e-4e911dea02a2","block_type":"box","text":"i.e.","page_number":72,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"d4eaa12e-b8ea-477b-9b05-695743b76e86","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":72,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"d5b31ce8-9627-4b93-a0ed-0d1d0c97ef01","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":72,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"113544c4-17e6-48c5-b459-9c02878c7263","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":72,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"59a55b6c-dda3-40cb-8bff-e041f194bbe6","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":72,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b9a15f84-a1e9-4d0b-b96b-f946312a52d4","block_type":"box","text":"Foreign Market Risk.","page_number":72,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"72e5285b-7899-49cd-a82c-e1137a6156c2","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":72,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"52a39846-2fee-4204-98ad-78a447a24040","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":72,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"5060254b-695f-4f9c-a841-a7d1c81fc5ab","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":72,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"3e99ac9d-352b-477a-8f97-6d65f7a05f7f","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":72,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"52e148fd-f8d3-4930-aa53-4cdf43e6e840","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":72,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"b982d336-835f-4936-aad6-e9cc55a738bd","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":72,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"6b311777-786a-4237-b13a-e976589bc6b3","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":72,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"6e5faaf4-929f-4556-b738-505a89052210","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":72,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"b3f86ac5-17b1-4836-801b-6f7000a34a98","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"7b1bfb12-b996-41f7-a996-2e73d6338de2","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":72,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"47a911be-b256-47d5-9f7a-ff3ab2747c88","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":72,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"694f9746-f081-45c1-af20-1c499746c45b","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":72,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"3498c8fc-8f76-4675-b196-70ed4b0d361b","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":72,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"fe190114-a6c5-439a-b4c1-1d11f1c28e9a","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":72,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"bce1268e-10a7-4be9-bb01-1906e4a78c03","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":72,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"4264a700-6816-4f63-ac5d-ee13c842cd55","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":72,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"a91730db-69d4-4eac-b7a2-085fea6804e4","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":72,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"c162f32b-11c1-4dcb-9f0f-a0f334970eea","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":72,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"026fc154-063a-46fa-941c-da30043f5907","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":72,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"3442db66-361b-42c4-9d0c-4e70f0f37b0b","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":72,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"915ad5be-221f-4b42-b433-370b1608ac20","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":72,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"7872219c-d157-4b15-8792-f213a1bc97ee","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":72,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"e0e9cea0-1fbb-4c84-b338-7c2dd53895b3","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":72,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"0ac0937e-2f33-44a0-a79b-149c9fa5588b","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":72,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"983d049a-2490-4868-a8d3-abaf8787dbfb","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"d871bb72-7ece-4d8a-8851-568acb299bda","block_type":"box","text":"Fund’s operations.","page_number":72,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"4bb274c0-5375-474b-8cfb-74f27b65940a","block_type":"box","text":"Foreign Economy Risk.","page_number":72,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"e7ffc537-9027-4797-b773-92e15c19e83a","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":72,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"2902a71b-73bf-4819-9c1d-733a223112c4","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":72,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"2cd69e52-eb1f-407a-aa3e-70ae1070a473","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":72,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"72f58370-70a0-4c9b-a22e-748030214257","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":72,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"7f130e5b-9752-4e2f-be25-1cd5cc22f570","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":72,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"200fad12-21e4-4cd9-bd2c-efb29f7e8cf3","block_type":"box","text":"measures.","page_number":72,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"9412e8e8-5e9c-408a-b69a-061e4f2e8e17","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":72,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"40197b55-4a44-4f84-b84d-045ee3690cfc","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":72,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"f5777cdb-e5d1-4461-b853-7b83f99268ae","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":72,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"a6dbff96-4fcf-40c4-af49-1b259aa7eee4","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":72,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"13f28699-8900-49c3-bc84-e061c28767f4","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":72,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"e9181446-73d2-4fc8-aac4-c87ac9e898dd","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":72,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"9ad6d187-1a54-4fa8-8550-e594bf09ef19","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":72,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"20c5285f-aeb6-496c-9cdf-7a2332a06bb1","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":72,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"b9d514a8-cb20-4812-b376-0252e9e6eb74","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":72,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"fac1cf7e-1a35-4e5e-b5b9-280b0593d9fc","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":72,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"db87bc13-7328-4227-bd1c-4bc0e5173f57","block_type":"box","text":"United States or abroad.","page_number":72,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"71eeacb7-9aa6-41bc-9709-f27e7da82b33","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":72,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"cbfee119-adf9-4db0-8f37-3c83640b5a8a","block_type":"box","text":"Many foreign governments supervise and","page_number":72,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"abb05cf4-12a4-43bd-985a-69236e942936","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":72,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"2248e47c-46de-42d4-8e97-f5b81c5a81a2","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":72,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"f643e7c2-ef51-4fb2-94d1-160a982b0f7e","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":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"96a70164-a671-42ed-80fa-46a016cda8de","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":72,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"6d4a14fd-fbc0-4274-8962-cbef2b7d965d","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":72,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"1eceb9bb-623c-4ab7-a805-2571f4f6e3e8","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":72,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"88b9566e-5f46-4d01-8c26-198b1bf7b9b7","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":72,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"03d28c93-d84d-4f8a-aa82-f7d6f9ef7700","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":72,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"c843caf4-9c87-434f-9098-e27c697fcbd9","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":72,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"cee4fbff-c34d-40cb-a4a6-ce43180c6784","block_type":"box","text":"II-29","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce2b1e9e-705b-40d4-8594-6aaecfd5b4bf","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"478bd454-bf27-4f4b-8311-326e5e816e0b","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":73,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"de9508b2-9417-41ed-a681-2cdcd7825d12","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":73,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"c8abd4e9-099b-4825-b565-21c2177f84e5","block_type":"box","text":"investments.","page_number":73,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"aaf030db-4b39-4bc2-b899-fcc73cb2473f","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":73,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"28d1383e-5e3b-4eba-8c03-7c143762e4d5","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":73,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"2dd9d2c5-fbdb-41e5-b99e-3b87e4137bb1","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":73,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"e9527ab3-1c70-4c04-965a-b7fcaa8d0a0a","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":73,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"bb89747b-d3c5-41d6-a27c-f5de6884bb4f","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":73,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"bab65f57-4675-4ba6-a914-1b8c629d5ba1","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":73,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"0e277571-d79a-4eeb-a637-cd7f1d56dbd5","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":73,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"524b9f34-ce89-453c-8368-c67a6e936eee","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":73,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"60dc3ad0-f92e-45c0-8f95-e5812f700136","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":73,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"3a5b821e-2b84-4a81-9a83-19af72a21e3c","block_type":"box","text":"States.","page_number":73,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"4e104ae8-c8c6-47d3-83bf-49ab6630c19e","block_type":"box","text":"Publicly Available Information.","page_number":73,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"c5ee9cd1-5d3a-48fa-89de-fed55277cfbb","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":73,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"f1162184-0f5c-4097-ac12-fa740403801e","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":73,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"b29a4628-7232-447b-8c0d-d83d79cfbcdb","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":73,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"97c8a8ea-f65e-411e-b4e3-48a5f521a37a","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":73,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"15667430-95d3-4981-a5a3-7736c85964b1","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":73,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"a88cbef0-9471-4c57-b47f-cc6fcb21a24f","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":73,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"35f6afe4-90d0-4ccd-8d42-0fd53b208f14","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":73,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"c1e14380-a0dc-4488-b8f6-605ad9f36ac0","block_type":"box","text":"United States.","page_number":73,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"21b434c8-4def-4645-9830-d3450b038bde","block_type":"box","text":"Settlement Risk.","page_number":73,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"f69e0f52-94a5-40bf-af03-159afc09ded2","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":73,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"fa444d20-952a-4226-a194-2b303befe095","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":73,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"b07ce908-3f91-4757-904d-91292c310eb1","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":73,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"824b8118-6554-4990-b79b-9e7568d3891a","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":73,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"ed3aefb7-2ec1-4474-ad27-796d082a5a93","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":73,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"720b6062-69fc-4ad0-8948-e2b9a56ce424","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":73,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"93e73791-65e3-480e-b971-2ec32fa82b92","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":73,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"3a3e6249-be23-436e-ba0d-6bf74dbd1214","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":73,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"5e17a341-2b6c-4601-a8a6-97ba557bdbef","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":73,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"a13587c9-741f-49fd-b712-4f3090dcdb1b","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":73,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"0a04a8bb-8a9c-4c01-8d80-c85809fd6ea6","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":73,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"065ba298-fd04-402a-bff6-cd8736d9d939","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":73,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"f57a72a0-de5f-4f94-9b24-fd13264ddbc7","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":73,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"3d876fbb-5fb6-4ea7-9dc5-232caf45049c","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":73,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"c48aedc4-e602-42f0-923f-b0027db5a4e0","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":73,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"bc6aba51-8e7d-47f8-8b42-ddb644caef61","block_type":"box","text":"Sovereign Debt.","page_number":73,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"4602f8d9-00c8-447a-b942-1dea31622644","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":73,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"504ccebe-7e00-4e90-b5af-f81c7f6865ca","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":73,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"758e4e84-fb46-4e1d-84d8-702c77146c2e","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":73,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"9fa024c1-8abc-4308-9d17-50db9566029a","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":73,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"bfb39fa6-c279-49b6-b190-8a67c9fb14bb","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":73,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"1b035bd3-709d-4c2b-9a6e-36f6628673a4","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":73,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"fc3f033c-2574-46d4-8fb9-c303ca0a1650","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":73,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"6c454eaf-2f86-4ebf-976a-35dda456475c","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":73,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"d19e60e3-e75a-4ac2-b237-363f808a6270","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":73,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"408dc66d-1b5a-4da5-b69a-07b94758d26c","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":73,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"9e5f5e6d-3ac9-4ed7-afe2-b62f9c77194f","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":73,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"6dbc35f0-45a4-4181-8dca-8a272b9e2e81","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":73,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"a9dad147-541a-41b4-b68d-4efa5cee19a8","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":73,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"b4ebc2f1-7f12-4954-b520-cff9709863b1","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":73,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"e67e3214-2e03-4ac8-b823-a9d4315ca155","block_type":"box","text":"debt.","page_number":73,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"0d82bf64-91ae-4508-9a93-db121d24bac4","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":73,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"77668848-5f91-408c-a7da-6dab540256f5","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":73,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"4b5cb5d7-def9-4018-97cb-f37efd2494d4","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":73,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"8035787c-7b7d-4718-bf0a-082d11b7f6c4","block_type":"box","text":"II-30","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56969480-9e7e-4eb7-bef2-19046f79160d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac531ff5-0997-4bf9-878d-6d5a2000e0e9","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":74,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"5dd1b9c5-706b-47d6-8caf-f748aa1947c6","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":74,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"ac1a4ae9-c069-4848-a119-94c082d77603","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":74,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"cca086fe-2d71-4f7d-b891-b387c5414cb5","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":74,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"b2e20b86-413c-4600-ae6c-9111da4c140c","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":74,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"f4c8545d-126b-4219-8f8c-2a7465d22034","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":74,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"f99cf63d-dceb-4acd-94ab-a0766a4716e2","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":74,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"56c00a2a-c513-42be-8f19-2665ca0338f0","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":74,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"2f409518-3ade-4d71-8cec-0a0fe74967a0","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":74,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"0bbf951e-1bb5-4196-9080-69bd5fb95915","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":74,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"1c38468b-cbe2-4afa-9386-075d854a6a4d","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":74,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"911d5e6d-8e51-47e7-b85e-d3fbdb3df66e","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":74,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"b9cfbd2d-3f53-48a7-9b06-d41b9671012c","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":74,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"4c9d11d9-117b-4c3a-87e0-8297f0f5f33b","block_type":"box","text":"in the Fund’s net asset value.","page_number":74,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"ee96bca9-99e3-4a3c-b21d-bdaf073b414a","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":74,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"8a9a2ca0-28a1-4a84-8e86-1ad6ea05e940","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":74,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"1f6b10cd-f7c2-424c-b6da-a0364dc3da88","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":74,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"022d8899-f162-4e3e-b14d-4dd360e0869c","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":74,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"87c0e4a4-6210-46d3-8307-643efa3433b4","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":74,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"da98fa3d-c8ae-4940-8303-b8b8d19b3e91","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":74,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"add665c8-5641-4d22-a8fc-b1c4cf3a4c5e","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":74,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"47a6a106-9b3a-4f18-8700-2afee08e9b96","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":74,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"3b9db600-bd5a-4dc1-bda9-8c8fbce5b399","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":74,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"b0ed967f-e912-4887-8d36-4138deef4833","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":74,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"9ec4671a-d5c3-46b6-8065-68ba1e646770","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":74,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"4b6503de-2b0a-4068-8e45-ed1834ca6a4c","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":74,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"54ce41d3-a3e2-4675-918e-ddeab8c414ad","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":74,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"d983ca63-5c48-4207-b172-e9e55ac823e0","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":74,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"8668fbba-1932-4dfc-baf0-25b2d938dbb1","block_type":"box","text":"Fund may invest.","page_number":74,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"768b707e-a5a3-44f4-9e30-0c1f4b8e7b5b","block_type":"box","text":"Funding Agreements.","page_number":74,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"e001b471-8a3a-43b4-9b45-868026dad524","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":74,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"b20b4b95-abb6-451b-be83-334f63301a87","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":74,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"d12e448c-a7e3-4b60-9ce7-dc450f77c8cb","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":74,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"4957c668-bedc-4c1b-8528-bd9285c7a886","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":74,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"31d2d360-27eb-40ca-95d3-3b7e664928d3","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":74,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"651c7a92-bd10-4580-b3c1-5c13546c9fa6","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":74,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"08f99949-a91e-4a52-80b9-2318b0c810e5","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":74,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"8499258a-7d4d-41aa-9e2f-7c3e2972feee","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":74,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"3ae93995-6065-4419-930f-1afedce59952","block_type":"box","text":"Guarantees.","page_number":74,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"2ccbda24-d612-4ce1-84e9-16caa64dd668","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":74,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"abf5b5da-05c0-44c9-9e6c-f2ba7bb8b593","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":74,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"a41ac34a-0e53-4d8c-86a3-81fd8c14852c","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":74,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"51b0bb41-7aed-4fab-afb4-43adcdfe87d3","block_type":"box","text":"Illiquid Investments.","page_number":74,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"560f2c4e-f64a-4757-bae8-e8430d59a5dc","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":74,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"b91dee9a-324c-4bbe-bd60-492192d59480","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":74,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"f51c9f2a-561e-44f0-a599-00aa0c42af95","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":74,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"f2215cb7-7731-4061-826c-b94f93bf04ca","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":74,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"6dc2a5d1-8a15-40a1-9b37-75ae005efaae","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":74,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"0ee7b5bc-5984-49fa-a842-2e79baeaae9c","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":74,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"a0e01c8e-f8af-4bf7-b4c1-d5fdb55f24ae","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":74,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"7865d9cb-26e5-468c-8bbf-9126fb2f3885","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":74,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"0f5f089a-72f7-4748-80ba-c3d536083545","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":74,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"fdce2180-2670-48b6-a702-4f7fff28de3d","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":74,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"07dcffbb-f628-4877-89ad-816cfc0a3ff5","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":74,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"19a4d592-3df9-479e-a320-457a38ae88c1","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":74,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"4a74a233-4cb9-4cdf-b1e2-6f7dcd79d9f6","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":74,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"030acb97-b35b-4b48-bd17-05d6003ba356","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":74,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"8fdef70b-41ea-4c5e-a8a6-12ef35bd8040","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":74,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"42196b72-8e3e-40a2-90a8-bbcdbf33ffa7","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":74,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"6e614565-e262-4777-a3cc-a9c0f517f52b","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":74,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"dffeb160-d767-40b6-a8c8-54902b7a227c","block_type":"box","text":"II-31","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c2d42783-e4dd-46b5-a55c-10763c110a2a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae4eee4e-621e-467e-8c99-1c06564de10a","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":75,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"9e5ac1e2-df60-4dd0-8082-89547916d3c7","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":75,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"86fe9f93-a2be-49ad-bf83-526849dd1516","block_type":"box","text":"Index Funds.","page_number":75,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"2c0151a2-e5d7-466b-8535-45d3cc87dc70","block_type":"box","text":"Cash Flows; Expenses.","page_number":75,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"d9907325-d6fd-46dd-9162-d13221c90003","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":75,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"7b5b722a-57ce-4ac8-a83a-c5bb51ebc7d7","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":75,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"46af7340-0ef9-405f-968f-930f77f8fafc","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":75,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"1404df08-5589-409a-aa31-07d2060e9713","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":75,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"440e0d46-2119-47fe-95f3-c394777b31de","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":75,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"b97fa01f-a0ce-49a4-8665-ccd91005c50c","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":75,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"6ec2bb73-b439-46d1-8456-474ecbc7afb5","block_type":"box","text":"(","page_number":75,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"2a0dab7e-3c8e-4a4e-b686-201922181175","block_type":"box","text":"e.g.","page_number":75,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"19989b59-0dfa-4d54-9caa-8a3d49c4e2b3","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":75,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"e62b5d9f-7fa8-415c-8081-e6a88ae8a05b","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":75,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"e64233c5-b15d-4a2a-a86b-ac777424eabb","block_type":"box","text":"par ticular security as an investment.","page_number":75,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"4dae2997-81dc-4fde-ac0c-52dc04591bf7","block_type":"box","text":"Tracking Error Risk","page_number":75,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"b6ad0413-f2d9-4bd6-8886-6848d8a6b092","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":75,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"42f34fdf-b31e-4a4a-9846-c3e45b92fecc","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":75,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"69db738c-231c-42dc-a9c3-101bdae235b7","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":75,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"bbbaefb8-e945-4e9b-b591-31890b8786fe","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":75,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"9e8cf7f8-1d6c-48ab-93a9-9052ae71b5e7","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":75,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"683c7bc8-a471-4215-8351-c8cb556dd29e","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":75,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"06014474-d79e-4dc9-a9d8-a2a3015dd1d8","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":75,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"dcaf2da3-7d6c-44f9-b5c1-dfebdcf874fd","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":75,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"be5a1a54-5261-489f-ae6b-2297fc95ab3e","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":75,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"d1ee7bcf-5150-4bd1-a244-cade42bbb9dc","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":75,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"3338ad03-9e3f-423f-b2c7-d5123262425f","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":75,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"cdeae7f2-8293-40a4-965d-272a32b26d55","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":75,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"c16411c1-17f8-4a53-bf59-8a6e45b02ca2","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":75,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"a022f4a5-8f08-4355-ae83-069d74fab93a","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":75,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"fc2ff209-d431-4eb3-b033-a07b0cf941fc","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":75,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"f05455c1-e9e4-4d22-9bd4-69c90e8d02e6","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":75,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"ded04a71-75b4-44ca-821e-b6ca9bd14430","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":75,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"d99cd72e-bc4e-4ce7-9110-245df3ee8e43","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":75,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"c48ebd88-ab52-4725-b20a-0893d2096a1e","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":77,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"39475e3a-428b-41fb-be1e-fd1733d487f6","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":77,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"498cf6da-fb6b-48e8-a971-bd2ae00a7bfa","block_type":"box","text":"ICE BofA Indexes.","page_number":77,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"34123bec-fca2-4817-84e5-acf686617443","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":77,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"faaef1c5-ed3d-4fa7-9cab-10e20f29d87a","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":77,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"c590a0cc-fceb-4d41-874c-749e7374fdc9","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":77,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"260d5e25-f72d-4708-b2b0-d756016b661d","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":77,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"ada4a160-0eca-49df-be2c-e631044b666d","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":77,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"b738b4f8-28cd-4bd6-97cf-3b1732d45528","block_type":"box","text":"completeness, or otherwise.","page_number":77,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"b5db429e-8ff5-49a2-8561-b4c4542199e2","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":77,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"f633a047-85f2-4261-9d76-a5dbc78ea95e","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":77,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"b19d843d-0782-495f-843d-783926a1a144","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":77,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"8960852c-5df8-49f7-9acd-19849a39c953","block_type":"box","text":"Indexed and Inverse Securities.","page_number":77,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"f551377a-467c-4b8c-b9e0-ffea047c59b2","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":77,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"84446eeb-7c4f-4d35-8409-12e43c6d96f9","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"596be837-aeb4-4d2d-b03d-cc8b9e726371","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":77,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"6c2d8532-d162-4547-9cdb-7e9dc68c1be1","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":77,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"1fe670fa-10a9-426e-b836-2d80dfdee7ab","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":77,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"58860af9-b27e-4491-bfbd-4a569c74ccc4","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":77,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"e5d05ee6-af8b-4fad-bc6e-4bdaa66cecef","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":77,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"39fb1cbb-fcab-4350-b6de-deecd828f2e7","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":77,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"4a2be3e1-1ae2-4afc-893c-8cd36738efdf","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":77,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"29cb7dcc-92f3-402a-8755-d7fceb0874ae","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":77,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"c5428935-bb9b-4b81-99ea-b38597939108","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":77,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"972ee0cb-0530-45ca-bea0-4cfee86a07de","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":77,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"4a7804ce-7409-4217-ab45-65f91e89ec14","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":77,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"e9967e47-2ced-420d-874a-416a3c72df25","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":77,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"08d0a2d8-a310-446a-90eb-71d6beaab86f","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":77,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"36cef797-2a07-4abb-93db-992c5d698a69","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":77,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c130ab92-2838-4a11-bc3d-6c5add516b41","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":77,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"9ed28703-600c-47cb-96b3-69b611d55c31","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":77,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"0869b51c-92ee-4452-9e40-59bfc971196c","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":77,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"2a9abf7c-7099-4b89-a9a1-2b56c55cdc49","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":77,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"2bf2f721-9ad5-481a-bad9-9d4ad15a92eb","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":77,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"aed945ca-4108-4820-8704-70eb65ba8a48","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":77,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"54a182f3-7397-4676-8c23-d9e966bcc35c","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":77,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"354b30db-f34c-4bf6-926d-62b09a8bf367","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":77,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"fc35d3da-2510-4af8-a69e-e0da18c68b33","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":77,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"dd7a0ed5-df07-4b20-b3df-772705d8fb53","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":77,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"658dd936-39f7-4afd-84a4-df889998e473","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":77,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"8032c351-12ce-425e-896e-ce0fc2ea2dc1","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":77,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"ac26aa75-399e-427f-924f-c27df82c94d1","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":77,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"8cafacd2-8a39-4bb4-b3d3-52fb5f664d04","block_type":"box","text":"Inflation Risk.","page_number":77,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"11288b53-1694-4421-a2da-54831416f897","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":77,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"95277189-8328-4f08-bf38-3cce36d684cb","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":77,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"8132da01-fa3a-45d3-9af4-176369636eea","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":77,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"96c9fe2f-bb47-4a2d-a492-ee52934d92af","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":77,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"7fb11763-b546-434c-b0e0-69b7a50a42fd","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":77,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"2501083b-da7f-4def-9d16-d59b5901194d","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":77,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"278108b4-6228-4799-93a8-3620d1c79743","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":77,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"c0d85087-e637-4995-800d-06a8c8a7b031","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":77,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"b7582d14-7019-4b8c-8f71-98059f283fb7","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":77,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"b1e1c504-54f4-448a-8267-c664ef13c779","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":77,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"ff3811d8-0de4-443b-9386-c959deb4a6d8","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":77,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"3328cc14-2579-4fab-a8e0-b7cdf7d93fd7","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":77,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"6a4d9e13-7036-49c8-930c-251f078e9f80","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":77,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"6d29cdc0-a4c7-4625-a6a4-cdef851ab85a","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":77,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"840f1348-daee-41d9-8ef9-3b0f7f5133c0","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":77,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"f2929ce3-3162-436d-8919-8105de4b6985","block_type":"box","text":"II-34","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b79d8eb5-1dd6-43ee-83b4-850ff1af9f33","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"368c889f-2656-44f6-bc7c-8cc51351a5ec","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":78,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"dae1df9d-cf5c-472e-b7a0-4ca09807025a","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":78,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"644ecd7b-7a79-4a79-ac79-6bc15b411085","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":78,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"78ddd439-ddf7-46a0-8a03-4988e718de1d","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":78,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"e8e9e628-3f4f-4550-b65c-9ee12cd8d9c2","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":78,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"7e5ce6d1-acee-4194-81d4-2dc409bc3bce","block_type":"box","text":"be available for very limited periods.","page_number":78,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"c3b6660d-c5bb-4433-82c1-45aa963888e5","block_type":"box","text":"Investment in Emerging Markets.","page_number":78,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"68bc56fe-8fd6-4603-b7f6-2b4dab69ffbd","block_type":"box","text":"General.","page_number":78,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"403333ff-20f8-40ee-980a-1b88f5c1e8ef","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":78,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"fd0b12e8-b893-457d-abc4-cf0c3f9ddd1d","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":78,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"8e075bc0-2605-4134-aa42-8986c7322c5c","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":78,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"088fa448-1e3c-4a52-96e5-2ccbf45beba6","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":78,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"466a5714-430e-4a7c-8845-7cc0180b1843","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":78,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"65410122-4604-48c4-bb4f-e73187c89881","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":78,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"017ca66f-9372-41b1-a6a5-5277bfc82aaa","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":78,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"367d7e24-aa21-45d5-aa35-80de2593c6a2","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":78,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"89e35162-a47b-4437-9f64-f547478da1bb","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":78,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"2facf4ae-d68a-4ab8-b1bd-0aee687e42c1","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":78,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"421d0913-f8ad-4f55-a1a7-3748076b4435","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":78,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"d67ae68b-18b2-4593-aae8-8d00a0b94508","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":78,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"492af207-d98b-47af-bb8b-6105f2538a9c","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":78,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"8911af8c-9d02-4c92-b539-6974750ce5c4","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":78,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"d6b906d1-f757-4e1a-b49c-48f47ae109e3","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":78,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"5fac2642-fd9f-4ddf-bae3-f818b6226e61","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":78,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"1430692a-9930-421f-a64e-9b701ba13af2","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":78,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"8075b8e5-ba1f-43f6-bd08-a764ee9db9df","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":78,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"f830d0ea-06f4-4d45-a9e0-d8e01674f4b4","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":78,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"313b317c-01e7-41d8-b3c3-baa4921c221d","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":78,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"82dba830-4184-4f61-83a2-024e3f0a5ceb","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":78,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"41b0c7e6-5ebd-4e41-93f6-dadd4c163351","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":78,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"29ffd290-930f-4ef0-a4b7-b0f72cc8ab84","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":78,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"e15640e0-34ce-4ba9-af66-0f567b57b7a9","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":78,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"d2126dcc-2d35-4d8d-ae48-4db4565ab3fa","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":78,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"76150fb9-a15b-49fb-8970-a9c38a2dbe1f","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":78,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"fb20034f-1a4e-4625-8b67-e1ae05c1e08e","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":78,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"603e4543-c545-4675-a16b-eea2a478080f","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":78,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e673b43c-fc8f-4882-b6b0-106e8b4634e0","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":78,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9e5aae81-ddbd-49b3-9025-114bf85e6b15","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":78,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"31c60db3-d83b-4c24-85be-430966b7447a","block_type":"box","text":"volatile than investments in more established markets.","page_number":78,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"9ec65e04-4936-4c08-86f7-2740bfe0667d","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":78,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"8f6f8de2-fa67-4add-8e68-4e993d9babc0","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":78,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"341f7d4b-9d3f-495f-a07c-5afe83f9ec44","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":78,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"f5445ac1-0e44-469a-bea0-746b4ba8be68","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":78,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"e23cc3fe-62d7-479e-b1be-c5846549bf90","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":78,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"6794745a-a9a5-451a-88a8-1f355ae86358","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":78,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"6e0d6251-765f-460b-87e0-9f32145eea77","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":78,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"5da4d7c0-87a1-4470-9dda-bc209a1176b1","block_type":"box","text":"acquisition or disposal of securities.","page_number":78,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"1d94e587-afd0-401a-8275-dbf5af6dbff8","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":78,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"4f95e3fc-02ec-42b2-af57-b104b4e8997d","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":78,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"69557ffb-4960-4d76-b48c-6e9ca304d097","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":78,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"9e74e2f0-f8e2-4758-bf8c-f446c699a226","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":78,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"8c8d12f6-f4ca-41d6-b3db-2fe00a7afe6c","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":78,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"0399437a-b28b-4315-b739-b3c6a6435a18","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":78,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"36121e02-d1e2-43ed-b1fb-7e9eb1ac0649","block_type":"box","text":"II-35","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24ce8a32-5357-4db1-bde8-d7f9b2df141d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cd0200b-8338-4f02-a71d-ce69e2880b7c","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":79,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"75ea1389-f6b1-428b-846c-64224788f288","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":79,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6ef3d89e-e5c5-484b-a938-4f8bebe3bab6","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":79,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"15c1fecb-9544-43a4-9e7f-bdbed42ca480","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":79,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b8f4bced-2dc0-4d14-b65c-5b7580df5154","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":79,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"8c068455-aca4-414d-8e13-cbb02b45be4b","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":79,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"d9622930-a36e-41d9-b5dd-1f8f73405c35","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":79,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"4f3578af-9290-4cc1-aacc-6eb9cebc316c","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"79366511-f656-48c8-8877-c839740f3a4d","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":79,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"6e261646-3861-447c-a847-0d2fc6f5c251","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":79,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"14fcc583-1acf-4f93-b721-c9dd50cef9ee","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":79,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"be628e69-8ed1-4d77-822b-4586236e9f7d","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":79,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"8e751c6c-2c77-45b6-a686-286833b6c65f","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":79,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"22724d8c-8dd3-4208-baf7-f01206e165a8","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":79,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"887ccf27-80f0-4dd4-818f-1967eb9a1278","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":79,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"38eb8293-1a42-4670-b997-b2d8391aa62c","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":79,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"f2dbcb4e-527c-4dd3-82f5-b5a9bab31925","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":79,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"dcfcee0a-a4d0-4f2d-8f5d-093f3bb4c5c4","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":79,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"d90b3394-f428-486d-8454-c0d21bd7809b","block_type":"box","text":"per formance of the Fund.","page_number":79,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"2840895f-6df9-410d-9e35-63fbbbfe4114","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":79,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"6fa9f843-73ee-4d36-b062-48807576e2d7","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":79,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"a1901986-e86a-433c-9bd8-a8f4bc77fb39","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":79,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"cbf7762f-edb3-4912-a99b-e302536d1429","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":79,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"7928a9bf-5ee6-4592-88d1-df6f06a12754","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":79,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"cdd8ea3c-ac8e-4177-85fa-61efa81d1a79","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":79,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"7ea0fb47-18f1-414f-946f-792dd191cae5","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":79,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"a6836fd1-e7db-42f2-80e2-17337cc22172","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":79,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"664c24cd-ce1c-4fb9-b7d8-b06d8175a9e6","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":79,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"7126491b-cc50-4c75-be41-7fc283a75a1e","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":79,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"b7d1c986-2bc5-4025-8f25-df3f6b16c300","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":79,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"b01c45c5-b0e2-400a-813d-fb36a93a41ef","block_type":"box","text":"affected by a variety of factors.","page_number":79,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e1df9621-fc07-49f5-9079-1e52f5f48771","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":79,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"7ca2ea82-d158-4148-8be3-6bc3face2a2b","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":79,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"3352345b-e876-4b1f-8c49-8977f024dc27","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":79,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"d5a01c04-1e96-4453-be02-5ace73d04b99","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":79,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"e2597079-d25f-4c28-b896-343fd5a3bf8f","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":79,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"536587f3-9430-40ce-94fd-df8bad6ee145","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":79,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"ad53fdd2-c30b-44c1-a734-9ca921dc76a7","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":79,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"4ff2d3f0-ddd7-4e99-9def-412cb257ef98","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":79,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"e80ddfb4-e03d-40de-b59c-0e6fefdbf3c7","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":79,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"44d00f49-15a6-4b96-a780-49606be505b2","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":79,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"79e11ed1-ff35-4f95-a71d-699eef589643","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":79,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"4339ad98-5fce-485b-bf97-2da7c132cb8d","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":79,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"cc790825-8fd2-46e8-8e1f-4971d1002d48","block_type":"box","text":"nations.","page_number":79,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"1b8f46e1-0a40-449d-bc79-5c1659dd75d0","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":79,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"a3b0f08a-66d4-4612-819b-961229544349","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":79,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"35f272e1-fef7-47bf-87b0-a094788facbd","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":79,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"82c4759c-7d42-4f12-ba5e-cf5db83cd7fc","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":79,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"0597ce41-9427-41b3-9df6-f4fe73501d39","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":79,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"8fe49f3b-f09a-4869-bc43-f5df76914051","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":79,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"da1d1c9a-0992-485b-aeee-9bdf83e42395","block_type":"box","text":"market Asia-Pacific companies.","page_number":79,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"e3eea64f-e12a-4c86-9ef4-078a7c2a2019","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":79,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"81c314cc-03f4-4670-b43f-fc9f7f237a74","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":79,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"f3c1bfe6-9e2f-4d61-8b9c-8e4b4aa11f8d","block_type":"box","text":"services for such securities outside such countries.","page_number":79,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"4ecc81ce-378c-43c4-a9eb-485bb835ea9a","block_type":"box","text":"II-36","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83b194b5-3723-4b13-8f29-a33cdff6ef5e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"298f3594-f86b-4788-9975-30cfea6cac76","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":80,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"bf7fb33c-9654-4399-8fb5-7c28d7be70a0","block_type":"box","text":"to commercial banks and foreign governments.","page_number":80,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"db92e0c8-dbee-44fb-9648-bf9a75521bce","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":80,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"a41eba04-b02e-4311-a71e-1780171701fd","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":80,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"afeec335-68df-49b7-9411-fad446b614ad","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":80,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"6bbd5bbc-ef57-4a52-96ff-820e64600bb3","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":80,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"7722bf5f-4b13-4732-8c0c-d0069b849fb0","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":80,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"58d7e0ae-426b-4a15-8ba6-68137bbe436b","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":80,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"4f290748-25eb-452a-808a-6e81223da42e","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":80,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"956f8615-80fb-4773-8ed9-3248a5c34251","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":80,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"99952932-950c-43cb-b4b3-70503263c212","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":80,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"d686396c-b1b5-431a-b8b6-897358165504","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":80,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"c7dc08e3-5494-4412-989f-c85ffd8540ed","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":80,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"965fd189-accf-46fb-8ebb-9d8079050ef4","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":80,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"d3369233-699e-434a-b552-c8c47f7eee37","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":80,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"1c6bf4ef-fd07-4527-b2dc-acdac4459486","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":80,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"16231d70-dc35-415a-92ca-16b1f2522b14","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":80,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"dde61538-8774-477f-85f5-3731e69d67f6","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":80,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"c0c0110f-8023-4549-93cd-f079790070de","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":80,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"79fd2ad3-a680-4e66-b334-d75f65bdff17","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":80,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"bab3686f-ced3-4a82-ae2b-b5fa2f9dc9e8","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":80,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"c74fc1df-db23-42d5-9f8d-400bf2b7084b","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":80,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"870bd0b1-958d-4e84-a059-d24b11aa2611","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":80,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"680c90b5-a294-4e01-a83f-e8d26570b141","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":80,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"c33cea36-672c-45de-a8d2-a500e06b7a17","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":80,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"fa5c3504-3f7b-4da5-aa8e-dd3a42834da9","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":80,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"1ddca22a-6c0f-477f-a757-91f08ebe6c26","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":80,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"1bd4fabd-61cd-408e-8fbb-8e02f8355fb4","block_type":"box","text":"investment at that time.","page_number":80,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"aaa0ca7e-9327-487f-b0fb-a5984dea3e2d","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":80,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"ed676133-13d0-432c-bcb5-14f3efa39c9d","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":80,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"8a9f2518-9bc1-48a5-a9bc-529be0a509e4","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":80,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"83c6214a-7a29-4d04-97d2-514f5edfaaf7","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":80,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"d44e2902-4a97-4642-aea6-a123d98ed42e","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":80,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"fbb877d2-bae8-43e4-aa7e-268483d3bd80","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":80,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3b004c0e-603b-4934-9608-42d73943a249","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":80,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"33001e6a-19b8-4669-bc33-4b1bf0a68729","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":80,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"4ec1c024-6d0f-4076-a5c7-0864fe2e23fa","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":80,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"f82329a0-1833-4308-be11-3916a13d3fb1","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":80,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"1efb84c8-fafa-4dac-9377-ac099374b706","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":80,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"d2e2c9cc-9cc3-458d-bdeb-a817cc63c486","block_type":"box","text":"government).","page_number":80,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"99c3c7c7-5b5f-4d08-8996-b06a1182a737","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":80,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"773fd24e-5259-419c-8053-6f7d960aaced","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":80,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"6200dab8-20a9-44f8-803c-3a83547b8dd6","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":80,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"d28c4c48-bee2-4e7c-9ef0-24a08e372b26","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":80,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"1a9cdb52-e981-4804-aa08-8eaae2aedd0b","block_type":"box","text":"foreign banks and other financial institutions.","page_number":80,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"ab6cb90b-ed06-4ca9-8346-eca816f5d8fb","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":80,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"5842b531-691d-49bd-b611-c5adbddf157b","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":80,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"dcab88c3-9ee9-451f-b6d9-c29f50b71174","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":80,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"f82d0039-ea79-4539-b5f3-cd4aaa4da870","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":80,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"50786239-912e-4490-b89f-2b616ca14d31","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":80,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"6ea66284-ecfd-4948-b391-bc8d50530aaf","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":80,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"9cb50706-16b3-4a07-a083-7754d02ab32c","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":80,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"8b10c15b-7aae-4a42-a127-9de918c1837a","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":80,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"b83c5bd2-e025-4403-a8e1-ae018af467be","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"81ceec44-cd93-4b36-a169-94cfee17c015","block_type":"box","text":"II-37","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"033bd719-5bef-4ae8-9bb2-2e309bf91f17","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb0d530c-11c6-4ce7-b5cf-782260eb167b","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":81,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"9084ca81-50fa-414e-b980-b68d4ee38b11","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":81,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"4fe83e80-948c-4884-9e7d-c91464989761","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":81,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"0da426f9-f05e-40a4-958a-31bbb06672b7","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":81,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"8d5509e2-4923-453f-b173-291652a744ac","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":81,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"dc3d7939-40da-4052-953e-99e5d468b51d","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":81,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"dc5657f6-cd5e-485c-8baf-991ccc21cdaf","block_type":"box","text":"foreign securities.","page_number":81,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"d8c30562-261f-4b37-a65e-8c58808f1003","block_type":"box","text":"Risks of Investments in Russia.","page_number":81,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"e61ea50a-1999-44b3-8cf7-937f3ccff214","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":81,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"2bb6308f-4df5-4cab-bc04-81308ab4a447","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":81,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"44c8319a-9947-438d-85a1-bdb8b9bbe938","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":81,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"9f4772c5-f6dd-4833-9789-cacdcba9e768","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":81,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"dbec5e39-cf28-467b-a46d-28a69e051798","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":81,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"e32555f2-8e33-458f-856c-504c2c93d7ac","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":81,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"6ce958cc-a960-42c1-aa0f-31a6fe8b4aeb","block_type":"box","text":"developed markets.","page_number":81,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"34bd2b43-c219-45c4-b9bf-531c0b65fa9c","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":81,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"be0668b1-b17b-4ba4-839b-13f8900657be","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":81,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"90e44e50-e3c9-4e0a-ae58-d8f5408febfa","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":81,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"8b5057fe-84c3-49bf-b123-77d38e7c78eb","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":81,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"c867b7f7-55f1-4662-b1d5-d4cf19906a6e","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":81,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"39cc49f1-9b12-4796-b2aa-3625fb58715f","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":81,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"d4bdcec4-1265-4c17-8e0d-c12fc4c7805f","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":81,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"486655eb-84f0-4d6b-afa7-eaa5c2e1832e","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":81,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"48314eb2-d759-4fb4-8d38-51e6274ec039","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":81,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"4aba7cae-6917-4883-89d3-7ab3116cc0f6","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":81,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"e35ab688-10e7-44e7-bf3e-286db51cc73d","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":81,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"716e3c20-ecbb-43fc-998b-7034712d123e","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":81,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"2f604d76-3182-48f5-920f-e8b6c45042ab","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":81,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"64587a03-3de9-4880-85a7-be80210923b7","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":81,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"02427e77-5683-47d4-bc02-03b22f4a931a","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":81,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"50b1b43d-c593-49db-a3fc-d6e33badd738","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":81,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"47621a2a-860f-4bee-a3d5-c4e1b5ce85c7","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":81,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"fdc6dcfa-438d-42f6-9b4f-5e0f67925630","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":81,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"a4ac3c28-3eb2-4af3-aad8-e02c4124d34c","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":81,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"de17b367-048f-49d7-9268-65e2ec4685f1","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":81,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"5e39ad4c-51a3-4c48-9ae2-220e2eebd877","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":81,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"0cdfc757-a120-4550-9d3a-032b3e6a7b82","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":81,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"405d236a-5304-4843-b2c2-ecbafea7196b","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":81,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"4e928800-2dea-4975-8438-71cfb4ddc3d3","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":81,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"5a495d8c-c957-4c14-bac7-5cefbe91e601","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":81,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"86f668ea-a5e7-4267-9332-9b038a0c5b85","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":81,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"887874cd-f7f4-4c30-a8c6-10c784bb8860","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":81,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"b1867554-81e4-4245-b8cd-02da6b982e1c","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":81,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"431d1547-90b5-4620-a36c-7750f5086998","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":81,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"f067d719-fa69-472b-8682-395f7777aa63","block_type":"box","text":"sectors globally.","page_number":81,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"627f0904-e37d-4732-ad89-48240f60dc83","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":81,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"86c7ad1e-761d-4864-b037-1e83b3a6df31","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":81,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"a2cfb3b1-5e7f-4fef-8afd-0f480d9f2e2b","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":81,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"9ed541da-a2ee-485c-875b-93118b7e63c0","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":81,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"766baf8b-c56f-4188-9391-a104cb941775","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":81,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"37829fda-f52e-49c5-bd23-7adfe2d4aeb2","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":81,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"56ee588a-754d-4864-974d-5cdfbf8421ac","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":81,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"5c729c16-cf3f-4296-9cb6-9a904791e371","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":81,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"18c02c50-de48-4d6c-8d41-e199f429dc79","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":81,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"3eee3bdb-f10a-496c-b43f-d440d2b357b3","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":81,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"8cc1e668-94ea-4757-8811-e9c505daa485","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":81,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"b2b7d1e2-cbe3-45a6-9cef-f88fdbaab3df","block_type":"box","text":"II-38","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"abd01838-d5ee-455b-8566-42e7a41429bf","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1916884-9e97-4fa9-bd41-079e073e6de4","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":82,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"c8ece26e-c27b-4ac6-96b5-a54f009e872c","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":82,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"f47a9d68-c008-46b1-933b-459ae970f43a","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":82,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"33730427-0b61-4766-9f6b-7b331956d46d","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":82,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"1e6e158a-0adc-49cb-a206-50fef0a9fc85","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":82,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"e856e090-f975-417e-8325-14ff1e70c529","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":82,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"0ecc3482-29ca-4e0e-a840-4f241f50bd53","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":82,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"03ed81ac-10d9-48f6-891d-97d2ad0c7dd6","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":82,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"b8e18e0d-acdc-4cef-a2f2-57943e446903","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":82,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"cffaaa06-901e-44d9-a63a-f93cdec02ea8","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":82,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"2e942743-72d5-4646-8779-0fb245317e74","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":82,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"4d56ced8-1df9-42b4-b85b-e2a7a2f56646","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":82,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"17982eb2-c6da-42bf-9258-058c873a1356","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":82,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"e4957508-4f1c-420f-92ff-576398bd38c2","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":82,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"cd5430c9-0687-4deb-b389-8c6879818f70","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":82,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"0845e75a-c6a7-4fbd-b4fa-1877f89299fe","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":82,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"52343052-856f-417e-a839-21dc98fe33f4","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":82,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"aeb6c957-d6bb-4ba4-bae0-9d0f8d587517","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":82,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"1318473c-d2bc-44fe-a5e4-ecbe07704409","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":82,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"fdd756e9-ae4e-41cf-90ed-a22cf52ed6fd","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":82,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"8042564f-7273-4259-9ac2-aad8ab8db290","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":82,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"e26aea85-dbf1-43e4-bc1d-4a84160a7fe0","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":82,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"237b56e1-a142-48f2-a3de-d848d6c9a4e6","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":82,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"477a826a-8de8-4e95-869e-e91ad8fb1662","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":82,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"bc820d6b-69b7-42e3-9675-67f0c4369c04","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":82,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"6229e446-a63d-4fa8-bef9-ac5442285a26","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":82,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"d2cddd64-6233-4529-9c45-1f503746cd8f","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":82,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"c7b72147-78d1-43ef-88d9-bb6d57a02b97","block_type":"box","text":"impacted.","page_number":82,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"e2e76ada-781e-4976-8be2-69bffbfcdae1","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":82,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"a2d73b9c-24eb-4186-a18b-088e87cee61a","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":82,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"bfa6e84b-2078-42df-8e2b-f27f15bc3b7a","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":82,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"eb435ebd-d0aa-4d0a-a9ae-4bc54300a375","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":82,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"e4b44baa-b089-4f7c-adca-85749f4b3a4e","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":82,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"4ac3526c-b9cc-4074-8370-6fc39c692464","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":82,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"fb3fb2c3-afaf-4d66-afb3-60abf0d1082e","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":82,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"77816724-50cf-4c9c-ad93-dc883cf849b8","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":82,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"fd622d6d-a99c-442d-a600-753e5a0a097d","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":82,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"c734e9eb-da6f-4a69-9ddc-610deb346620","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":82,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"a6aec04f-0ff7-4b35-957a-073194e14ca1","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":82,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"58535ddc-8fd8-4a15-8351-889e7cb1c966","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":82,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"fc2e056c-5b79-4557-84c7-d750537c1adb","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":82,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"9ae240bf-fd18-40c1-b08c-67a50baafece","block_type":"box","text":"economy.","page_number":82,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"39b88757-d871-4206-a9df-77f37663847c","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":82,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"531361f4-b61b-4622-91cf-42c700550d50","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":82,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"9f0d1c59-7f2b-4644-ae5c-50ace6267902","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":82,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"8e5c076b-d92b-424a-b359-af9d47c0283c","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":82,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"f2055d5b-46a9-49bf-a9e7-40f84988e25a","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":82,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"81dc734b-75cd-4a7b-9119-6864a84a7104","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":82,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"d6a3d4e7-27aa-48ac-9bd4-351432c57c44","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":82,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"96b7608e-1b4b-46d1-896c-49141ebe14e9","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":82,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"2d254f79-f8b4-4813-a704-a07542ac5e26","block_type":"box","text":"typically the case for investment managers.","page_number":82,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"bec2df1e-9d1f-45b9-8ee1-b5028cef7c03","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":82,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"47812ea2-7b1b-4673-98df-fd8ae676ad09","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":82,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"b89ad4ea-11c0-4055-bab7-c88ae3be98d7","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":82,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"51707634-f29d-4eeb-9cff-c4810b1a8803","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":82,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"5250e64c-d04c-4a81-b55f-189ac8d7548b","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":82,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"3b591f4b-f736-478c-a31a-20cb00a84032","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":82,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"c5033eea-0068-4b4a-a503-bc7fb0197630","block_type":"box","text":"II-39","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27572bff-754d-4d82-a14c-ac614724bafa","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2be298cf-ed4d-4ea8-8969-5f7eef3610f1","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":83,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"6e1ba219-e8ad-49a6-b8fc-dc28003634cd","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":83,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"e163779c-4f5e-485a-af57-bace31dfc50e","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":83,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"dc96c252-7fb1-41ed-83f6-1cceedc50418","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":83,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"04477b2a-e7c4-4e52-9bf1-523d4edfe4c5","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":83,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"0c70dbbc-f11b-42fd-94e3-7cf853dcb4f0","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":83,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"57e3f4b3-239c-4fcc-a13e-41f353b3b3a3","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":83,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"25dd19f5-1628-4f09-9cb7-49752767c3e2","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":83,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"28e9374b-c9f1-48e7-b4f5-bf5c707a272a","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":83,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"4347b550-a5a3-42a3-8ac6-e740e530aa05","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":83,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"76c8a4b1-a865-45fc-88cf-a8627e38839c","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":83,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"d0b7d108-a49d-4509-bda0-3d1d910e1c9e","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":83,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"cb2851ee-ea83-46ac-b41c-bd4e666108fc","block_type":"box","text":"will be indirectly subject to those risks.","page_number":83,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"8d3f3ffd-c42b-4094-9e8b-2a85ecc82978","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":83,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"d1808c3b-3f63-449a-811b-2cd071fe60f1","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":83,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"18326b25-24bd-46d2-965e-5d5883226bbf","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"6bffc371-6c86-450f-91c0-75ab728d3a68","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":83,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"9ee0e490-8a45-4eac-8df0-7dccec801410","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":83,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"90cc73c7-6f57-445d-b3bf-eb24923ef656","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":83,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"18a80a37-8464-423e-9216-09bcddc5ba20","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":83,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"1ea214e5-1f70-4492-ae9a-f72264a89b18","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":83,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"232e9699-1631-47b4-86a1-c72dcd7c0117","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":83,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"3cb37e79-0c0c-4e0d-a4d9-5f1b11c728c4","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":83,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"82afc6f1-2541-41b4-8f01-6203cdb7ab5d","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":83,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"d83caabd-56df-4a5a-b11e-8ef4baa92cdb","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":83,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"91c730d6-ed39-4fb0-a440-8e2423b5b617","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":83,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"e4e0b6c9-fa62-4316-8771-8f413b4f6601","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":83,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"02e3e08f-c644-4a30-b1b5-b9f048b970b6","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":83,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"30c15263-5ebb-45ee-8073-91c83b0fa8a9","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":83,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"2ebed8b8-e642-4cc7-b508-3af421e3e12d","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":83,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"036f1917-538f-4ad9-b4c9-58fa81fc4c13","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":83,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"05d5a204-4882-41df-ae0e-398b27751c9c","block_type":"box","text":"impact on a Fund’s investments.","page_number":83,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"2b0b0eed-6ce6-4ea7-b17a-483041222572","block_type":"box","text":"Brady Bonds.","page_number":83,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"418e2d29-1d38-4c33-aa93-db2f4d2febd1","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":83,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"a326e738-623e-4ca8-bfd9-83e235ee314a","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":83,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"5ef4c8f2-c8a2-45f9-89fa-03c3f0492600","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":83,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"c862c9d7-c994-4d00-be82-3c881904ab86","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":83,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"2734e870-79c1-41ee-ae5e-dcde42850d56","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":83,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"283453c0-3064-4d76-9a8a-109992154881","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":83,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"0b61764f-5413-4108-b7a4-5072e1c4ef1c","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":83,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"c172b13a-98be-4fed-b0fa-f94f7d32fb7f","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":83,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"95575484-d394-4ad6-8fd4-01299bd7dadd","block_type":"box","text":"Venezuela.","page_number":83,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"53bab982-fade-4952-ac2e-c215cccdc432","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":83,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"f497a8ed-7b74-4921-95b6-654764221d8c","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":83,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"823ff5a0-038c-48b6-bbcf-ff0ffefd5303","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":83,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"7fdff161-4b68-4685-b766-6e098df8bec1","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":83,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"f177570d-3a33-4fa9-b12c-742135f5abef","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":83,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"62591033-564b-4321-b040-5d7c3ccb7157","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":83,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"81dd7cb0-9cd6-42f9-a83a-4bb1393b6ad0","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":83,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"6ffa6dda-b4cd-4067-9f64-0fdc7d94b3e9","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":83,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"7904232a-d010-45f8-9924-2b445fa7cf1f","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":83,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"68361066-7569-4086-90d9-5ff3a65783da","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":83,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"74d85295-8603-4b38-b7fd-ea25fe445b79","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":83,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"029cb4af-ca44-4a02-a795-e91f1537220f","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":83,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"3a5eae0d-6db5-477d-8373-93a71da58935","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":83,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"6ef844ea-ecd5-4322-be7d-19172259b220","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":83,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"67164075-c553-49ed-9d97-e1083688a749","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":83,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"ced93336-f8f7-4fe2-84da-e7aea678f0e8","block_type":"box","text":"II-40","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d7f3cb2-d68f-4015-8937-e4e14fc67abd","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"353978d1-247e-46fe-a94b-4fb720448799","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":84,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"120a634d-5b3b-434f-ae6c-655822375a29","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":84,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"1c6e85ee-b7b7-48bb-965a-2355d70afe93","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":84,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"ac3e5416-a977-41d9-8990-ed47b14e5e8c","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":84,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"eece5168-3520-48f2-8281-fd2d0d06c819","block_type":"box","text":"China Investments Risk.","page_number":84,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"43c4fc94-fc60-4495-93da-62f3bb42a20e","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":84,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"6d77842f-ab7b-4c7b-84e4-0ebc15c9154b","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":84,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d9c5f00e-ce63-4832-97e1-209ab731b0fe","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":84,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"f93dbbc4-ed77-4fab-94e4-7d503eb68d4c","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":84,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"2c8aa01f-6ffd-4b1c-b19b-4654d486168a","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":84,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"b60c8fd7-a0ca-4b26-bdeb-879a6c502c16","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":84,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"0f0a306d-737c-4b26-ab40-d3033410abb1","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":84,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"2ec9e378-afd8-4c04-bed5-097ccb2789a5","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":84,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"2bf9b570-3345-4297-9716-34864040e44a","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":84,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"a84eb30d-24cf-4408-9b4c-2ecb4eabef75","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":84,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"74e42b12-aada-4c63-af0d-eb00dad933ac","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":84,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"0d4a3243-16d9-4851-892f-1f9b0785ca43","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":84,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"6432da63-f583-47be-8e18-21de5beff618","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":84,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"c8f2c8f3-37c0-4b61-9ddb-bcf15eac0edf","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":84,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"714014dd-e51a-4422-9dcd-94ab64100d6e","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":84,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"641ca224-31a9-4e9e-b32f-c99f1509c01b","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":84,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"156e660a-cb9e-4bdb-b2b8-1008f01ffee3","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":84,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"6d887233-76c1-430f-a39e-e52ae22e65fb","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":84,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"ce4a3af3-4237-4d39-9942-4f3e45713bba","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":84,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"fae4b001-51c0-4bde-bca4-16232ece48b9","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":84,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"af4a9661-76e0-47f4-902f-dfc6d8501af4","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":84,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"837a75ba-1b0c-4fdd-8bb4-7bce543052b8","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":84,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"c3ef06e0-1ade-4b28-bfde-4933c6a32920","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":84,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"175a2eb7-2bd4-4705-9e9d-f316b47bfa6e","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":84,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"cee25b38-9e24-4143-b98b-e7a03e9cf88a","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":84,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"919bcd47-4f15-486f-a4c0-c94186982629","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":84,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"0d401c4a-cb91-4209-a705-ce6b99a2f105","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":84,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"104d9de4-0b91-41ae-bd33-851222c68eec","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":84,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"c1b85f1f-43da-4ab0-8c9e-49378628b489","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":84,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"db331dd5-035d-4227-b24b-d8b378e3f7b0","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":84,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"798caf5b-db1a-4152-b720-a0520837dbb3","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":84,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"e0d6f979-385d-424b-ae08-885ea448331b","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":84,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"e3f9da7a-9627-4cb1-a01b-1150d0269ece","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":84,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"262fab89-ba87-4038-9a55-457a0f4e8771","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":84,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"821d0785-4ce9-417b-9a7b-e266305d7dd2","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":84,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"c74c428c-d7bf-40ff-bf1d-a9b9c1fc7d2f","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":84,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"3c9fd2a4-f9b6-4d13-b1da-f85067843084","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":84,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"38983ce1-2d8c-43e6-84ce-d99afe5ffaee","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":84,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"4c668a80-1c5b-4ccc-9f53-7a5767cbfca4","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":84,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"ff9dcf60-bc49-4be7-ba51-30ab981d8191","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":84,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"61590862-027b-4a93-a60c-70a8f4de318a","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":84,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"5fee426a-fa08-429b-8687-80a2ed741883","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":84,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"2185cb4c-87aa-4524-ac92-9802f61427df","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":84,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"c758378d-2fe7-4245-ab7c-a20b70b1ecf8","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":84,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"dd29a2bc-22a1-4ad9-920a-a1449e0132ce","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":84,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"6ce369ba-2a40-4edb-b999-4e3e6327d6e4","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":84,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"74a2bfeb-0a55-4953-b2b3-081d6c49dcb6","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":84,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"63a9f455-b52b-48f6-9dbf-8d7841794544","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":84,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"c11e5ab1-0f5f-491c-84fc-ddcfd117457f","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":84,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"255d781d-104f-47db-800d-8441b92e1ee8","block_type":"box","text":"sub-custodian.","page_number":84,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"7e4aaa99-d668-4535-aa4f-dafea94d1479","block_type":"box","text":"II-41","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e62a2352-0fe1-45c1-9b4a-40101665a785","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd12d8a9-8582-4b8a-b3f9-d5abb7e322af","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":85,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"6dfd5e73-59b1-474c-ad6b-ee5f5d55064a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":85,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"93dbeae5-3f62-485c-990b-7f084c3041a2","block_type":"box","text":"on investor protection considerations.","page_number":85,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"101ca1d1-83e5-45a1-ae0b-694d93a505cf","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":85,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"596afd1a-ccbf-4228-b1e4-f13ee5334401","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":85,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"78d7b45f-1d56-4914-a89c-1cd9d020bae0","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":85,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"29a1aec6-28a3-45de-8cf1-15d131b3a6e1","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":85,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"95c5184b-a660-4434-a573-6d173ef0f23b","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":85,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"9afc3147-ea02-4a95-955f-bd0a97507169","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":85,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"36250ec4-5da6-4e21-95ed-70040dc1d6aa","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":85,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"69fef192-57d5-43c6-9069-a5323edee1ce","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":85,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"23b1dff3-f698-4215-bdc1-b452759d766d","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":85,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"b17c9d21-f7bc-46e9-bd07-ee962821d033","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":85,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"07ff4065-5309-4e2e-8659-2f45e317fee3","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":85,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"699f999e-49ca-41fd-9f0b-ee388d0c8f65","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":85,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"0a9d38ef-abc2-416b-bcb0-99c180fb2021","block_type":"box","text":"accounting firm.","page_number":85,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"31dd9faa-e3a1-482c-8b2c-b4853ec8aa76","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":85,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"3b21ec27-11fd-4911-a5e3-c81fe8398408","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":85,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"22e19076-b41c-4089-abea-c5b165f2e694","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":85,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"b13de1a5-35e3-47ce-9425-dba86d77bfca","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":85,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"449466e1-4bd7-48b9-9554-57acd09b57f9","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":85,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"ebd58f10-9b24-454a-b338-2fca0fd7b72d","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":85,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"c32433ae-5317-4f4c-a3fb-1792f40b4c8e","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":85,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"41d72a5e-e722-4032-b114-f6282cbe5b98","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":85,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"fe92c4d2-3e85-44f0-ac33-c8a1ccac3c6a","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":85,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"31d5c354-7e5f-4cf1-a69c-2ef21cd78b16","block_type":"box","text":"RMB (“CNH”).","page_number":85,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"7a5d11a5-c6d8-4279-89bc-c832939e04ea","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":85,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"273f3951-cb17-41e0-b84c-a914f051be63","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":85,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"ef4fcd60-bea9-44f7-bb79-b233724a0d6e","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":85,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"9c72ccea-f9fe-4abd-ab09-388caed49994","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":85,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"59e31d7d-dfb8-4bf5-b372-305dc75e7618","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":85,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"4e2b5efa-9bfc-4684-bc2a-de95b5f44cb7","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":85,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"3fc589a8-388c-4031-9299-dbe6f4bf0627","block_type":"box","text":"represent equity ownership in the operating company.","page_number":85,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"ed7e3d4e-26a1-4d17-8f19-a0b9ab1b271c","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":85,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"ef45b963-aa9d-4e26-a392-cc3301a23139","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":85,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"66cf7d85-0ddd-4a44-8e1c-a5f1c013f4f0","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":85,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"2bad7650-f566-4288-b8d2-7c5f4483805e","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":85,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"d5e296b9-9d6b-461d-92b7-e9071138ff4f","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":85,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"78dd8e5a-37fd-41bc-9946-cd2df440619a","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":85,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"ed2d739b-d3be-4dbd-aab0-926c75414b0b","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":85,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"4c91c4b9-9f1d-4a2c-8b5d-a43ccf14f3e4","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":85,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"41f77db1-ebce-4b26-99a3-9a92e95fdee5","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":85,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"2193e3df-2f1f-449c-b7da-cf9bfc050a3f","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":85,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"5449efc9-f2b6-43e5-82ec-f5a95d757e74","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":85,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"d4085e57-72dc-4820-b757-557822b814f7","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":85,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"469f39e9-1741-476c-9666-68802cbf962a","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":85,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"cbf009f9-553b-4403-8828-1c046c7a79e2","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":85,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"8d7e59f2-c1e5-4c95-8638-cbccc0883383","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":85,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"57488677-823c-4147-a9e1-9a08467fdd5e","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":85,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"6ef7a4f9-aa85-4e90-8c58-f772a55e4a45","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":85,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"d597c8e8-5303-418f-979c-78ce47644976","block_type":"box","text":"losses to a Fund.","page_number":85,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"4a3bed2a-daba-46fd-a473-85baa7567008","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":85,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"509fac93-12bb-4c8c-a517-d2a037238459","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":85,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"3bf73845-7cb3-468f-89f8-6d26b34a3157","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":85,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"8e4704c8-84f4-4c16-a327-2d82305486b6","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"372efd34-8dba-4956-b11a-668196518b7d","block_type":"box","text":"II-42","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a03e1606-93a1-4e94-bc63-2688ddaa74aa","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8a3ad0d-85d2-4eb7-ad5e-7686243a28a9","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":86,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"f8415c29-9666-4790-87ed-21cccfbda4fe","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":86,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"972fe5b4-524b-4b85-9473-c0baf1c80151","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":86,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"31a30c41-1b56-4604-bfe4-a8e5dd218a14","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":86,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"5510db6d-15b9-4828-9511-acb7464435c2","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":86,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"2b9d0fba-c180-4577-a612-e02f76ccacf9","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":86,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"977d2b6a-1602-469e-b8dd-7e98e45ed553","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":86,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"32b7bf93-c473-4920-8fc0-5b1c3aefed4c","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":86,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"3f509ba4-0a26-4f98-8e8d-d3645dd047dd","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":86,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"981e1884-f98d-4e33-a586-d9b88579a8a1","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":86,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"c8e9be51-f219-42b9-90c1-08de5b2578f6","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":86,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"9295a972-f74b-428b-92a4-03156eefef9a","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":86,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"ed294797-1cc1-4f06-966c-42ea05269661","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":86,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"5585e5d6-050a-4fca-98e8-f10b8cc8f072","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":86,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"2dfd5152-07b5-4d9c-b297-698b0e75aeac","block_type":"box","text":"such companies.","page_number":86,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"2675f577-6ced-4caa-a3f0-7f53f0f7c50e","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":86,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"2d9b978d-8fc2-4ee2-a2b5-53210973a142","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":86,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"3ceb8cee-6ebd-4e3e-ad0f-d6dd0cb27b4f","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":86,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"0df86450-751f-40b3-b098-897e3db66d44","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":86,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"6c1c1912-d91c-4375-9cc1-445e4e5d4854","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":86,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"e881d2e7-45af-4868-863c-f89e5be7cf59","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":86,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"af058e62-4c6e-46a7-ac23-b868c07b480c","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":86,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"c3b4f341-45a4-4ebb-8c1e-bcd1340b059d","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":86,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"24b26e2c-ac25-4716-9696-31623634453c","block_type":"box","text":"standards.","page_number":86,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"71fd9e87-9c3b-499e-a02d-7be5ecccb94d","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":86,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"f24c214f-a77f-4ec0-ba6f-7139448070d5","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":86,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"1ffb79b0-4d39-4dd0-ade5-26cca4287880","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":86,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"d75faff0-f1e5-4950-8929-cf51a095243b","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":86,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"b22d7a68-49db-4b3e-8e06-1f3473de5d87","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":86,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"bc0dc2e6-b851-4bf0-9306-a9d43fad2d3f","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":86,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"f2be414f-1a65-4a42-a8a2-5057d81615b0","block_type":"box","text":"General","page_number":86,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"671d9f60-a67f-4f85-8655-460b1b5147e3","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":86,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"96e15651-3dfa-4c69-8fa8-3dd39273d023","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":86,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"e435c8f4-b310-4696-8ecf-796a1170dfe0","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":86,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"803d9700-ad5b-4056-bbbb-7d755e1492c6","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":86,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"fbdb0585-6630-4eac-9ce4-e230c1e22e42","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":86,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"0c3a556a-de30-4e11-90c4-30d7d86d2ad5","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":86,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"39394a24-bf22-41cf-a474-9838c6a8ae54","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":86,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"7c27e484-8ee0-4bd3-a0ae-bdc3425bef06","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":86,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"326db342-a1ce-496b-a166-cddafe2c148d","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":86,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"b9175eb5-510f-4f3c-8722-c34011d63597","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":86,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"192b5448-b551-45b8-958b-be710d28d206","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":86,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"0d4e49a7-ecdc-4f26-b77e-010686cf51f7","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":86,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c7a25074-cbfd-4769-8704-f610ebe81f8a","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":86,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"dc42caec-98c8-46af-9376-1db40d185405","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":86,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"c738a331-2976-4d76-88ed-de03c479eadd","block_type":"box","text":"company established by SEHK.","page_number":86,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"ed491ba6-b9ec-4e63-bd76-e824e58927b5","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":86,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"f66771e1-f8b4-4886-b6a6-b46bc3f8f80e","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":86,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"1f7ed46f-1e26-4646-b029-35b11e416578","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":86,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"9cb5bb13-99ef-4d89-a243-9530f61cf925","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":86,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"27e25a1a-8b96-45ce-8761-19418b7cab2f","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":86,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"42c70659-7d8a-4350-9fab-65795f392e0c","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":86,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"8e61d376-fc05-4de3-ab6b-fa3771eb968f","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":86,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"c3f41989-e237-431e-94a5-e537e8b9895b","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":86,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"db3fd3e2-ff5c-4c2d-85d4-cbb00c82bf49","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":86,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"66c0ef87-c755-4e57-bc95-3dd7fdbbd30b","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":86,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"6e4de5a3-a494-429e-b1c2-01a08b089235","block_type":"box","text":"II-43","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b9e42581-68e3-4bd9-9ec8-93853eb09263","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28975f7e-a1ea-4f5f-a230-58d6246dbd4d","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":87,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"fd9a6d5e-ee13-431c-893a-0d0fd21c616c","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":87,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"60a721f0-b2cd-4536-8fa7-5e6f92a9f3c7","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":87,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"d87b4d09-e273-4545-a153-1327bb3301f0","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":87,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"3bd36a6d-7385-450c-8cd2-836d33cd2e0f","block_type":"box","text":"i.e.","page_number":87,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"0089917a-a10e-4a2d-a8c5-5539d83b5ebd","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":87,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"0a281ef9-da98-48a7-bf0d-6aebd05f0a11","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":87,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"2ebc5afa-03be-46d6-88c4-cd453d9837f8","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":87,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"ad20a484-0dfe-4d93-87e8-47c076d273cc","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":87,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"897ea2e2-8d64-4fc4-bcd4-5a9207123981","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":87,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"7ee7d04f-e503-4a64-83d4-8223f7d44267","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":87,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"a3dfe988-be6f-4173-8c74-62d15def6229","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":87,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"11d1ea8b-712d-41b8-b7dd-4ee622e883ad","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":87,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"94874ee6-1a50-4a95-b451-091bd9e2e4b4","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":87,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"80490c41-ccf5-44a6-9365-a445cd1c07a8","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":87,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"1042d880-9b72-48d1-a5b4-f743027a1294","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":87,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"61212b32-79b4-4086-8365-93ce2ad9c294","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":87,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"304a08d4-d916-4354-b926-133157020aa0","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":87,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"09dccf44-c762-4c84-a68a-7181d6cb2c87","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":87,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"4227d399-e787-4521-9be9-fe5e225aa93e","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":87,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"f5901622-594a-41e7-bf83-e458fd0a2e6b","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":87,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"2307cc27-a9fe-4c41-ab22-b7f7b630a6a0","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":87,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"11cdb1d3-3611-4e73-b1fd-e9a49d58bcf6","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":87,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"e82c8f6b-a8aa-4cef-bdc0-1dcbdac31d3a","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":87,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"cf82cc75-2790-4e89-9199-d4b2dde1e983","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":87,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"f4b6fa1d-3f8b-4bab-8996-9b917d34a3b1","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":87,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"659b52f5-b24a-4f35-b753-e2352b3caaf1","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":87,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"00b4280b-32d0-466b-9d03-8ea795f226a4","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":87,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"97cf6e89-6052-4fae-84a6-447d784a192e","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":87,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"9b0c7ea6-353d-4587-b39d-e58291046183","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":87,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"53cb4899-bcbe-4897-8101-506d3af120a4","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":87,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"052d5bed-e8e5-40be-9a77-7df0fce2a26f","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":87,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"627b6672-1de6-4f0c-a83d-54bd2482cf92","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":87,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"67a55a13-8c98-4fe6-aa66-b045acd0ecfd","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":87,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"155abb40-5baf-479c-81ff-6765a56d0b32","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":87,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"2c2475ee-b64f-45f7-a5c8-8037867ed7c3","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":87,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"40aa0985-cfc8-4f5d-b345-657ba7c8f250","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":87,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"8ebb603d-b560-4a76-9cca-3fe9dabfdc7c","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":87,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"e843a301-96da-4300-8f83-033517e19715","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":87,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"861626a5-8211-4543-9cda-7aead73ff144","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":87,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"8798b60a-9efc-464e-8ca8-7108523fc6bb","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":87,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"87a98e7b-9a9c-45de-861b-21f5ecd92e4b","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":87,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"dcb81ccb-6903-4d84-aeae-4d5d62f1a60a","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":87,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"12370558-3d70-469e-a47d-1e7027efec92","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":87,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"be611c3d-ec44-4a15-bd96-bc2678be5770","block_type":"box","text":"PRC.","page_number":87,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"ba8c18a7-9d66-47c7-bbef-ad2bf78af344","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":87,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"ff08599c-443a-45c5-965b-a5aeaaef3871","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":87,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"c57f9b5e-748a-45fe-b4f9-c85b0e373c82","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":87,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"252ce596-518d-4d1d-8f08-260c2e035e51","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":87,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"29d22cf9-1067-47b4-b56b-7dc2bfcb4c73","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":87,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"34a150a2-c3f6-4ee4-ad8a-990457dbdd45","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":87,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"d6b4278c-7228-4a8b-bc3a-3a284aa5119c","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":87,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"5db1b10c-b30a-40c6-9539-ed2280b8aad9","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":87,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"6408c1a4-b522-4921-bb83-351ad523f68f","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":87,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"d8abb404-2506-4840-8934-2db450cb7f9e","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":87,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"420b9e85-a6a6-48c3-9824-b4bb936ac400","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":87,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"c207dfb7-6775-43b9-bd0b-d30d43ab4d25","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":87,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"c581c0a6-2cc5-4ed3-a39d-c3e5d9488e9e","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":87,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"85d072c8-fe03-4769-8582-3e46d88e69ec","block_type":"box","text":"II-44","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"09718497-e4ec-44c7-8c35-4717e2ef4565","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79fbfc8e-e24c-47a0-b284-e5412e09440c","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":88,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"50e25a04-34ab-454d-bba9-f50d173c8f29","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":88,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"10120950-7a54-4e3b-9c35-8d7b3ebf021b","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":88,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"941b73b1-4013-41d1-9a15-6593fa6f977a","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":88,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"71a0f179-8760-47b4-8776-ca4d016ab784","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"1e50b8e9-653c-4d95-8478-50118174e815","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":88,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"fa58e45c-11d2-486c-a759-d8b9d929e5cc","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":88,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"1b24f085-b27e-4262-86ed-18a7f649b844","block_type":"box","text":"Suspension Risk.","page_number":88,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"1bb0b955-bdd3-4794-a8ba-f8dd7ce794a3","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":88,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"3725e2ae-fbfc-436f-aab0-d5b640b00559","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":88,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"f2c07a6c-cbc6-48e8-ad01-7c0bd0d78551","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":88,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"6892249f-a644-40d8-849f-f3bafd065d74","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":88,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"74459cbf-ac91-44b3-a9d8-75170859d28d","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":88,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"7e6587f5-db76-4e0d-82ac-5c4bec205c74","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":88,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"add586f4-d3a2-412d-ae38-e93bde720ddc","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":88,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"fa79f45a-92cb-4ad0-8b07-b9190037b41d","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":88,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"33ce821e-9b2e-4806-bc95-0a8a1567dee9","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":88,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"9e214a7a-82e7-485a-8c4c-cb96c9b47156","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":88,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"9b4f0f47-62f8-4ffa-825c-22ba7034b50b","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":88,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"5cd08adc-a0b4-4633-8d3b-19affffe4cfe","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":88,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"8721dcdd-2082-4935-8b65-d94420b90501","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":88,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"ebbba3c3-9370-4203-b489-26ff9fc392c7","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":88,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"0d7ca11d-9e0b-4e1b-aecd-dda5fc6fd002","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":88,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"c43b0350-79e1-4d82-932c-3da73e3eb762","block_type":"box","text":"A Fund may invest directly in the","page_number":88,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"65731086-34e5-4cc1-a2de-35084c0d6157","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":88,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"d3b27b7a-84ce-42dc-91ec-c62a28724aab","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":88,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"b028ad23-4d1e-4bc5-bce2-bcab7353edce","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":88,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"6a967f1b-22d8-4470-bfed-5012ccfc827f","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":88,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"f91a27ff-fd00-468f-8773-c7ce44e69553","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":88,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"ab5d3d9f-7263-4813-86b1-ed9db76b3164","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":88,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"7f9b8574-6335-4af8-a026-7457641b86e5","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":88,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"7739fac7-34fe-4910-8b83-0c261b96ac09","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":88,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"16d4e122-53ea-48b7-a831-798621aa009d","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":88,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"1a07e6c7-020b-4f91-8b51-e887541e0148","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":88,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"15b4e374-ac9f-4405-93bc-f71edba8fcc4","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":88,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"ab64569c-c206-49f7-adef-e658c65fae64","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":88,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"ff826664-2e62-40d2-8562-fd1de64ac5b6","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":88,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"bfb81bdd-56f0-4d49-86d7-3ee4cb9adfc8","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":88,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"551e3b64-b143-4328-b136-e20d059a6e71","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":88,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"a158fe04-28b5-449c-bdc8-f30555f4516a","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":88,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"05ce9664-904a-4f27-8cff-f5567fba2f7b","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":88,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"1cfd3885-9759-4fec-a645-3eb720a8717c","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":88,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"ccb3c71c-7c36-40ba-9211-7ea66b9cb37e","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":88,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"f5eb0b66-dfe1-4d68-8788-d05362202dd0","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":88,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"a3bde50e-5a8f-4d8e-8c8b-62a3f5d3117f","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":88,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"bd72bf13-f55b-4574-8a1a-182c03cd8b6d","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":88,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"a84a6fe2-8e49-4893-a07c-a7e04592f82c","block_type":"box","text":"i.e.","page_number":88,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"3346105f-bf60-4a0f-ad64-a0d25abb4888","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":88,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"4dcc1d05-5387-4002-9478-42c23c56c356","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":88,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"1f2e9b84-ae73-4190-8446-2d54e59aea83","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":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"9ac55dae-8bde-4892-bdc5-cb779a89921c","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":88,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"4f2e47be-56d4-4941-8a51-d719793308e7","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":88,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"ad7e694a-59d9-427f-9c4c-b90d4a8a3093","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":88,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"334b7691-46d0-4b98-a92d-c16e51f96b6c","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":88,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"61b1da19-2cb7-4039-a678-dcacf393cf42","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":88,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"0e520f76-8295-437f-b819-75667cd606cd","block_type":"box","text":"par ties.","page_number":88,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"a6829bb3-3e7b-4a0f-826b-c076aaf7dde8","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":88,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"827b0b9d-ee80-474f-9f2f-2f831971e0d1","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":88,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"340f3a1c-e4cf-4096-9464-4498cc9c02dd","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":88,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"d2b48850-3d92-4e95-816a-ceb9f11f306e","block_type":"box","text":"II-45","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f33ebd05-67c6-4cfa-9cb9-197a0db44eb8","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cddea95f-1386-4900-ab95-8c49c4147e4c","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":89,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"a03d76d4-7ba2-4e41-abc7-2c79d06582a6","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":89,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"84a25285-bd66-46ca-9ee1-005a4f6b7ced","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":89,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"35fcd225-18cf-4871-bff0-9f815201de7c","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":89,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"bcb6d6bd-2dad-47c9-bcf9-8c1cfc5c5278","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":89,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"3769d914-9bf5-4304-9c93-353222ddafef","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":89,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"2a4c91ef-ecf8-4036-abc3-f7511f25bf78","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":89,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"6208c93e-c482-4e23-b538-82c73e829eb7","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":89,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"da8cae54-5b57-4b6d-b1f9-2466fbdaba9b","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":89,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"4e4b31fa-ddb8-45fe-9ec9-9d2fe3e73759","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":89,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"8e092414-c1cc-4142-bb03-a7c72ce396f0","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":89,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"84014a68-46d0-4ef7-8086-cb141d23108f","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":89,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"83b53889-4dc2-4b23-bc3f-a53be696a3ec","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":89,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"afc70fb5-5483-4c39-bd49-97e07cfe3ebb","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":89,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"70d5f4a3-1752-441a-b4ec-a7554aef7a6c","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":89,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"29f2e798-50b9-40af-b5b1-e32dc0a119d9","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":89,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"06fbdf47-4e02-429c-a3a2-592371e56c1d","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":89,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"67d354df-9894-46b9-a165-792c956d9d0b","block_type":"box","text":"per formance.","page_number":89,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"bdeedf90-2b5a-47c2-8aa2-13fd02751dea","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":89,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"80ac4376-a018-4a9b-b414-bd843c259a46","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":89,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"55797030-2015-4bb5-9be6-950f36435a29","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":89,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"5bad448b-472a-4b9c-aa78-5887dd8f146e","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":89,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"34b1e23e-fe97-4163-b884-109affc59311","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":89,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"6bfb97c0-d95c-4c50-9718-19b0c3f587a3","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":89,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"9daa609c-9ce6-4456-9594-f3eb4de60a8c","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":89,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"636d73df-a4f0-4291-8908-6541598ff7f9","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":89,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"753a03ef-eeeb-4218-9158-d186d44b0415","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":89,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"a25d83d0-5adf-4374-93b4-10825788b4cc","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":89,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"8ea2232d-53ad-4e4e-aa69-43018f25a4d4","block_type":"box","text":".","page_number":89,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"e973ff0e-392d-433d-8386-c454eca1f675","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":89,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"ae1c0891-015d-47dc-8509-887f75e86faf","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":89,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"64c44895-6879-4c6e-a9c5-f3d0db940374","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":89,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"4bd681a5-c04a-4d83-b755-ab7e892bc90b","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":89,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"06c908e5-aaa9-4b16-832e-d8d133c5e045","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"1eedda45-4465-48ac-aac7-ea59315fc426","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":89,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"bb2507a5-7a34-4090-9ed4-7cfbb8b50b92","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":89,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"b10770fa-e754-43c5-a57b-2f657fce6c1c","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":89,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"6dce0bbf-f26d-4bd4-a82b-abc4f77fb3db","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":89,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"430bbcb5-cb5c-42ce-aa64-f4b47ab50c33","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":89,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"e9083dec-718b-49e1-9460-a348123d4987","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":89,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"d8c70589-6b09-4362-a4e9-e6884bf66d93","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":89,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"7ee80616-f4da-4c9a-a6b1-78aba32afb1a","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":89,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"aa5662dd-ad40-46a7-a703-b2f3731052d4","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":89,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"9a0da992-7a64-4b56-bcaf-ffefb6a223c5","block_type":"box","text":"without notice.","page_number":89,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"35a5cdac-e25e-498c-8881-482854774b4b","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"e20e18cb-00d2-42d9-ab49-cc0232470f76","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":89,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"7fda5d6e-6303-4d4e-a80b-cef5eafa26b8","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":89,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"da41bce2-37c4-4b87-bc7d-42a15adc68b0","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":89,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"78dd68ab-259f-4eb7-aa40-b95c4e3640e8","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":89,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"56a71187-55d3-4ead-ab1c-3c04356edb2c","block_type":"box","text":"December 31, 2027.","page_number":89,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"b8a37bf5-3d1b-4db1-bb9e-34067d796e55","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":89,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"59bb7cf2-3943-4ad0-aa3f-cf9bb35be30b","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":89,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"06b05be3-459f-41a2-b8e0-0a34dcf5b621","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":89,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"e5a55f49-ff35-4fed-a815-02ea75ac119d","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"95e038c3-d243-4e83-8eb4-69b5311e489a","block_type":"box","text":"II-46","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"182f4d94-d9c7-460c-8877-45476a0940ee","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87309436-6baf-4548-a498-144b113a9641","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":90,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"9a7daaba-6615-4b57-abd8-f8eee8357e63","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":90,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"5362da56-6900-4f4e-bf28-ee457c8ef05b","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":90,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"ba041468-d7bf-4ca8-b0a1-4f3afe079493","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":90,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"480eaafc-70ee-428c-9fe1-7cfdbb3868ea","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":90,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"86d51794-e67e-4acc-b35f-818b6191f2e6","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":90,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"8443e567-bd7c-4213-8159-d9de3962b383","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":90,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"83f2c925-f776-4619-ad66-3ba3daf51466","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":90,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"0c46378d-01be-40ad-bf77-d690ac6614d8","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":90,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"0c88e7e8-cb5a-4c42-8353-635d344f1030","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":90,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"b8234208-159e-493c-b9dd-56fca5aebf97","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":90,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"383d0aa0-6b83-4347-bdf3-155995c79f70","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":90,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"858222c1-e8dc-413e-b127-e507e6335477","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":90,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"ff11fea5-b333-4b14-aee1-632fa5ffde9a","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":90,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"fea93561-8c20-4905-9305-5869c6d2d91d","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":90,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"dc98547f-88b4-4754-aa99-1332e63cacde","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":90,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"11a5a040-ed87-44fe-8687-90430864bc73","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":90,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"ace345bb-7175-4a85-b820-05f2cafbfc82","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":90,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"15c09a0b-2344-4373-b0e9-3294eb94595e","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":90,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"8b2ffad2-1981-454e-86df-54e7564466ab","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":90,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"de6773d6-d975-45ed-bc6f-8e8317ae312c","block_type":"box","text":"the PRC in notifications.","page_number":90,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"d580a33c-81c6-49c1-92e9-07686abbf4dc","block_type":"box","text":"Investment in Other Investment Companies.","page_number":90,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"ff78e2b1-84df-45ae-8c40-3592e8e0ddc4","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":90,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"09554165-07bd-410c-9f1c-9e431b3f6e11","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":90,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"23389705-987a-4965-adb4-cb88fcbcc0a3","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":90,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"a35f981c-f9db-461e-b1c6-04f6323b6ac2","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":90,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"a32b37f8-569c-4cb3-b8f9-631b465bbce8","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":90,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"cbadc19f-a766-46ba-9e12-b7216b27f49d","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":90,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"c3825ec3-cde1-4578-b5ac-cfb95898eeb9","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":90,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"167863b1-ccc5-4ad8-992f-d91902ca230b","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":90,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"d51c4132-3dcc-4c23-baa2-643f1f224e7a","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":90,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"59ba315e-528f-4d68-9caf-de5e57e60cd1","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":90,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"30e7311f-9fa1-458e-8ca8-47b6097262b2","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":90,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"1a3fecf7-f44b-44e3-8c47-7f9142f94b31","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":90,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"9515abb6-c925-4224-8de2-eb48bf3e2e9d","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":90,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"45f12840-28b3-4351-b10f-923bd788c5d2","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":90,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"b145acd8-38e8-422b-892c-fbaf30c71dcd","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":90,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d56fc7e1-669e-48b3-abff-0d3ccb436bf1","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":90,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"dfa82133-d113-4b4d-8a23-aa05ee758e18","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":90,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"7e80d748-1438-4b2f-b36b-c5049984a119","block_type":"box","text":"subject to cer tain conditions.","page_number":90,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"44965e48-0d10-4e52-ac8d-2a0336e269f3","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":90,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"14202a04-b557-49f8-a717-e6ad3ef7f9e0","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":90,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"8f819b81-4a03-4998-8e75-9956f97ed117","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":90,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"d6423612-a9cd-4b3c-ab22-279bbe7d50ee","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":90,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"680786e1-481f-411b-9696-5bd480607cf1","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":90,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"72fa006f-e20f-4ce3-8275-a7ee127c57bb","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":90,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"6efc6f05-0326-478e-850c-23a4ddba5696","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":90,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"9ade02a7-1802-4da9-90d2-2c7737b62c94","block_type":"box","text":"loss.","page_number":90,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"74beada0-5a01-4395-98d6-de393feefe64","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":90,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"219dea9f-4f3a-4100-814c-d55315261efc","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":90,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"4fc77501-e9e4-44c7-9d0b-19ac4bab28f2","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":90,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"4264e0b3-ba11-4402-aa18-02fc1cbb0033","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":90,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"4be43cfc-1162-4949-9367-0560ee3ed589","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":90,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"79a1aaa6-901d-4251-882d-6be99cfe9561","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":90,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"8bf10ecb-9f89-4b15-8030-9901aee37880","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":90,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"701bb011-de8a-4075-8664-f1af724d127b","block_type":"box","text":"II-47","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5bdda1be-92b3-4061-bd6f-a4ddb66926b8","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5bb0bad-172c-45cd-907d-77cb78f343e1","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":91,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"c55d9794-a62b-4436-a48a-2a2fd94716bf","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":91,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"a473bfc3-2ee2-4943-b051-be7e2109ae0d","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":91,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e6213362-dcdd-4db8-ac90-29ffc0890708","block_type":"box","text":"assets.","page_number":91,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"0038b3c4-d0d1-44dd-9a01-80e9a7ce6a17","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":91,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"d048d158-34cd-44fd-be94-ce2000d89947","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":91,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"e1b96634-fc1c-4e77-a728-d6d660a68908","block_type":"box","text":"e.g.","page_number":91,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"f2d923c5-17b3-49a0-b110-887a552fa6b1","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":91,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"c7a979b0-7333-4771-ba25-314a575ca816","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":91,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"15a3f7a4-bd44-495b-8d4d-7ee76cea6468","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":91,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"955513b2-9847-43e7-a68b-8841189133c2","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":91,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"fd472768-b75a-4c94-bfc2-f2719d8c9dcb","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":91,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"78dd9d50-244d-45d7-bc53-908de8a2aaf0","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":91,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"0a2c1a7d-0340-41d0-a0fe-41787af729d2","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":91,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"0dff2b94-1c41-4e40-88f5-03c888a5f2d4","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":91,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"7ea3d528-fb3a-4f65-8233-77a1a0fd9798","block_type":"box","text":"countries.","page_number":91,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"4daaf43c-875d-4584-aebc-f859f26876cf","block_type":"box","text":"Issuer Insolvency Risk.","page_number":91,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"a933c99f-f0ca-4235-bd3d-18198240d072","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":91,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"fd05c1e7-5b60-4278-baaf-ac3bb6ad802f","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":91,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"8b5ac834-3eb6-44eb-b2a4-d1fbfb6022ad","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":91,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"7f547c59-c72e-4e5f-818b-69e8c2d55f2b","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":91,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"e6a31dcf-a8a6-41d0-993d-d1cb2d83608b","block_type":"box","text":"issuer uncer tain.","page_number":91,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"737b9217-8d11-4ebb-90b3-df586043d243","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":91,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"1219f2c4-25fe-40cc-a3f0-20841304f56a","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":91,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ecd8f3e9-d783-4f4d-b427-c51b6d9dfbee","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":91,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"5677f5ac-27d4-456a-8431-2978822ab382","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":91,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"cffac11f-d3e6-4f14-ab11-f87ba46f6740","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":91,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"6d5ceb03-dbdc-412d-b37d-c95a96b4267f","block_type":"box","text":"eventually be satisfied.","page_number":91,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"308f7732-e589-4212-92ac-eb38abab7e65","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":91,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"22c6b616-326f-461e-b616-015a78470484","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":91,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"ca8a9ac4-ce63-4916-99c5-c853cc7dbe8c","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":91,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"26b090e2-9858-4c72-bd2b-2e6a77ae336b","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":91,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"7bca7c64-79d6-4ad8-92a8-3608614016d6","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":91,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"5f33aa1c-4a9c-4513-a5df-1a8a4caed9d9","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":91,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"68ed0b3e-05c6-46d9-bd4a-9c7ceedd2bb4","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":91,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"ec3c0ab5-51ef-48be-b5d2-db1fffddc615","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":91,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"167d596b-dfef-4f7c-aae9-2c049a375f47","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":91,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"43589213-1c29-4865-968d-0c3c5f96ae83","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":91,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"b8684b88-8045-4df5-aaf4-3c78db7050ec","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":91,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"73561472-fb3a-4ef1-8a25-b49209511742","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":91,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"fc998453-9310-4352-b3bb-0d104091a18d","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":91,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"9a898cfa-4f29-4ce5-b31f-69e4be7a9228","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":91,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"2c5f30af-d20b-4f99-af85-2210380ef915","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":91,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"0e7476f5-dd03-47c8-bcf8-27f20961dfd9","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":91,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"82aa69b7-1dc5-4e56-b051-7d3b0549cd73","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":91,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"4fdff45b-d276-4a2e-91e8-6be71a924628","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":91,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"0a699dee-5392-4f56-88bb-d9058302a7c4","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":91,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"e991ebba-73eb-4cd0-bf29-4bbb23fe5f94","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":91,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"e97027a1-6178-4a81-a7fc-2dd134f7d805","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":91,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"9a0ce6c1-5ca0-4592-b693-24d73023ed98","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":91,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"3a3b1385-6c93-4345-b7d9-0c5026612abf","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":91,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"6336fdc1-ab39-4aae-8a03-2a8bbb2cf8ff","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":91,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"d4ae7df6-1786-45e3-8964-3bb024128368","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":91,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"44ea3e55-28b1-4e00-b04a-6703855fa076","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":91,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f9d71ac9-4400-42f4-bde6-145336ef4161","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":91,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"63d9c7cf-ec9c-4e62-a3fd-4b1e1c5c8fbc","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":91,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"27ec66cf-5a7f-4be5-9c31-2cf2044e5dd1","block_type":"box","text":"that assumed generally by an investor.","page_number":91,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"d0149be2-1374-4d8d-a766-697523634515","block_type":"box","text":"II-48","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f43ca305-6347-4635-ad4b-05bcc88f3bff","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94a8c9a0-7fb4-4e3b-b179-f564a85d152b","block_type":"box","text":"Lease Obligations.","page_number":92,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"e6d8f77e-a01a-4347-b328-3d24d36155b6","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":92,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"0d3d470f-53d7-4eca-9802-f154b1bd3cdd","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":92,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"b80c5e7c-022d-4ff2-a7c3-dd1844601092","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":92,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"b80110b1-29ca-4567-aa40-5b20da903b91","block_type":"box","text":"Life Settlement Investments.","page_number":92,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"24a1ddd1-d058-42b1-a09c-65db3a64e624","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":92,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"efdeb2b4-313f-45d7-a96d-eec2410f0c35","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":92,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"b7372774-2e1a-4cd0-a6b2-8aff9fe2aebf","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":92,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"1f34ca2a-d8db-4cc3-9842-506afae29999","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":92,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"40e71fac-518c-4717-a133-17b154c5eec6","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":92,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"ab7092d1-e21b-48cf-b510-0cda15339949","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":92,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"60837c27-3833-4bf6-8741-651ed54fecfa","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":92,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"dd7c719c-439d-4aaf-b59c-48753c4768fd","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":92,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"f4756aca-9bdb-41ab-a080-d6115b4a35c7","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":92,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"82c75a7b-7e75-4a9e-b1b0-969c1996f74d","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":92,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"7310e5bd-8e25-4cc9-bcca-dcc1a25a8c03","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":92,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"844014ce-263f-4a15-929e-efd09e5bf321","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":92,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"01829873-e9bd-4ad8-b31a-7a84a39bd679","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":92,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"ed492732-212a-46d0-8c4f-84452440119f","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":92,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"abdbd42a-4d5a-4781-92af-33fc1740acf8","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":92,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"a82cfe30-ac46-4686-b0de-a8b90fc4b88b","block_type":"box","text":"Liquidity Risk Management.","page_number":92,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"0e8997e6-eee7-47cc-ae0b-aa3fb2a96cb3","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":92,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"542ccfa5-84d1-4abb-a0b7-abb78de2020e","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":92,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"cef98d20-608a-4643-ac4e-e917250aa509","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":92,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"1eb36962-2321-4b17-905a-ceed70a65f5e","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":92,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"7055a4b8-1320-4a6c-82a9-5cb5131908bf","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":92,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"6f81b99a-4a9f-47e6-93a3-5e348159e977","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":92,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"dd6882fe-72fb-4237-a10f-75a3e010e9e0","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":92,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"c9d99f0c-c724-4afb-b1af-025862c36408","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":92,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"24bf2db5-e663-43f7-bc82-a89842fbb38c","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":92,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"cc549ef4-e824-4ea9-8652-ca2bfb64cf1b","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":92,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"e9da9585-db43-40cd-b578-ec750b15ab47","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":92,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"358eea9b-b1e8-4cce-b91e-e7fb1c9f87ae","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":92,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"1a6e3688-6f87-4137-a291-a9eab507c650","block_type":"box","text":"Master Limited Partnerships.","page_number":92,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"f49ccbe0-642b-4f7d-bd99-dba3a1fb3b9e","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":92,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"95089060-c1c1-4fbe-9ecd-7b08db3c84e9","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":92,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"928f107d-383a-46ad-a589-9aa302809f75","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":92,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"dfb3e7b1-e471-4787-a12b-90f632384210","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":92,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"8fe3bb53-5677-428d-92ee-ad6446338bcc","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":92,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"031d6c87-d260-42fe-a906-075e086dd2a3","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":92,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"9a51edf8-f13e-48b3-b9bf-caf37a248525","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":92,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"befec771-1c12-45bc-b057-881ab10650ba","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":92,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"cea2110e-f2f0-4db0-9fd1-de216c929032","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":92,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"d9e31c18-a150-418e-9320-be8946d70641","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":92,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"0dcdb8f0-0c58-4e32-be19-e871b354bc81","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"b1460dd7-f3ac-4823-84dd-ab1b06a057a5","block_type":"box","text":"in the par tnership’s operations and management.","page_number":92,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"527865a1-2748-483e-8a0d-4143890b5dae","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":92,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"04ac1484-ec15-46b1-a163-11e8fe1d5f29","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":92,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"de6e46c3-0d6b-4188-89bd-6a53e2a0e925","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":92,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"2df451b2-eab1-48a9-b4b7-9e27753e1cfc","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":92,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"320c1837-958e-44d8-acce-5d9f4b31492d","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":92,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"0b78abb5-5867-4980-aad5-2e3fb8fa82ca","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":92,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"e8ff693e-17bc-4055-a351-72a82ad792ba","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":92,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"a854fb3c-1d3f-43bc-95dd-48bc51f44873","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":92,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"e9ffb21b-c52d-4ee7-a146-abbc3ecc9d0a","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":92,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"49c37969-4c32-4ab8-a668-92eb549c0101","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":92,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"5abca112-a02c-407e-9181-69bd71dbcf1a","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":92,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"961e9880-1e2e-40b3-a1dd-17fe1adac58b","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":92,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"36c144aa-061d-4ce9-b5cc-5169e8cd1166","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":92,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"2494c5ae-423a-411c-87ab-7ee30c895f8d","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":92,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"5469d2e7-17a7-440b-b715-ebd27f0c303d","block_type":"box","text":"II-49","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7ac2150-a672-4466-b097-02fce0cd6a8b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d76ccf7-351d-405d-a141-b86af0e4f077","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":93,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"a917df7c-ba62-45f2-9952-3f682494a77b","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":93,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"82b093a8-42f4-44d0-8055-fee946b9ee40","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":93,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"4333d68d-a11b-4f80-a4ed-4e4ca4f6649a","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":93,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"6e6acb11-bdad-47fd-998d-3d5182416d50","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":93,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"2340a861-6f99-4701-bd3e-50382edcb397","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":93,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"6836e93d-463a-4969-b7ea-bbaf25725f3b","block_type":"box","text":"Merger Transaction Risk.","page_number":93,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"98ffdb51-3b8d-4810-806b-5a062b543d66","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":93,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"a6d185d8-356c-4148-abde-a1cae474a342","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":93,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"67db138d-2ac5-4ecc-bbbe-d57032912d90","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":93,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"a2bdceff-46e6-46b8-aada-16fd195333df","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":93,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"4409ef2f-d9ed-4be6-a7fe-fc445633ea5d","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":93,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"9e989e11-98f9-4d3d-9ad0-e146c28ef871","block_type":"box","text":"the Fund and may lose significant value.","page_number":93,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"9ab7cd3c-5a99-411c-82a3-720524fb076c","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":93,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"49c8834e-2e40-43d9-8787-8a9835460de1","block_type":"box","text":"Cer tain","page_number":93,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"a6a1a8b1-52fa-4d4e-859e-d85b736b2e3b","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":93,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"8ca61242-050a-4d88-8032-f1ec15661560","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":93,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"cea6ff4b-0b8f-4e0f-b38b-6bb595e1e372","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":93,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"881315b9-8c97-4e30-9638-1a569d1bf8c3","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":93,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"4d069c30-fa38-4151-a4ab-cc3adc4da75e","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":93,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"ca87f2ad-2e86-4531-b560-9318ea3d9113","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":93,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"1eaf4dc9-cd1b-4d7b-ba9a-3fcea1e5319c","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":93,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"3b39859b-483d-4373-84c0-a46c10488aef","block_type":"box","text":"branches of domestic banks.","page_number":93,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"c422c085-2512-4383-b8c7-1cb49fbb7d53","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":93,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"4a7b4c85-b3a3-4632-abc7-5235cc1d4e09","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":93,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"e36f6487-6d5a-47c1-a515-86e28706e548","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":93,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"2085b4bb-f509-483e-8c6f-4a825764d334","block_type":"box","text":"paper of a foreign issuer.","page_number":93,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"25bc841c-b59a-416c-8384-b2e00e86cc68","block_type":"box","text":"Money Market Securities.","page_number":93,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"86907bbd-d754-4194-ac56-40636463616c","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":93,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"02b4ef53-aec6-4949-9d1a-8e6943425f51","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":93,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"7466e47c-2959-4060-8018-45b483584739","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":93,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"21ed8e22-24f1-4925-8ede-a3f9b4664036","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":93,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"27522998-0194-493a-94e3-c175f333c981","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":93,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"f93d4e39-f93d-487e-9d7a-ee6e5022097f","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":93,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"cded52f9-3fc2-404c-9ff8-83114abc25f5","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":93,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"18b60070-0be1-4aaf-badc-ada815be5ae7","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":93,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"51343a94-3f93-42b5-acbc-9adb6986a55a","block_type":"box","text":"agencies;","page_number":93,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"a08f8703-ff57-449d-8b8b-8ae1d974d6b3","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":93,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"8a78fc38-909e-449f-9b43-1ccd7ef444f7","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":93,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"7c7cb17f-513a-485c-8dac-8fff72b0617a","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":93,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"0db7270e-114f-4e3b-b968-df2b179b6fe1","block_type":"box","text":"obligations and credit card receivables);","page_number":93,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"598103b3-b606-4502-a555-ce39cf70a8de","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":93,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"85fbbc5c-b193-40b1-9008-31e871435a2d","block_type":"box","text":"authorities and related custodial receipts;","page_number":93,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"c22a7c07-39e3-41ab-a058-b71949fee79f","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":93,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"3699d12c-aa68-43ea-850d-ce356d0dfe35","block_type":"box","text":"agencies or authorities;","page_number":93,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"e00ffcf4-b005-4b62-a600-d6234ef4042c","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":93,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"785b441f-35da-41be-b2fc-e50ca094f3fa","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":93,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"0778dba9-372c-4bb0-ad58-81da9df34a9a","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":93,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"2c620d6d-01cc-4819-b98f-1b286abf7c7b","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":93,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"9450824e-86f2-4ff0-a2ab-120dfcb4d14b","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":93,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"e6d740fb-fbf4-4e77-b5ed-c73ea86d1da0","block_type":"box","text":"States;","page_number":93,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"19cb9c4c-0f74-4199-b370-c60580750e8a","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":93,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"5324b22c-05db-4b8c-8683-ae25371f9eba","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"4b365154-9a60-489e-8178-7228a827b011","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":93,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"c01af952-dff4-4a2f-b3ba-5741c3946f7d","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"8eeb5f7a-bb5f-4320-bf27-c93d3d39d38e","block_type":"box","text":"II-50","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da66a46c-9d78-4eff-bd07-27cfd527113e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ee348de-7340-404b-8c16-4ca68777e405","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":94,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"773f379c-0a10-4701-a2c6-92a65be2491d","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":94,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"e6bf84a4-88b3-44ff-bd4d-c76fd3b9a054","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":94,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"71a19e0e-ed0a-439d-9452-4c5aabc3e16e","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":94,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"c6f347c8-aca7-4d72-9778-3f1c26c8c439","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":94,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"76a1af61-a436-4a35-b475-e4d7eb2328d9","block_type":"box","text":"States.","page_number":94,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"107d580d-2ad6-42f0-b2b7-fe5c83fa8295","block_type":"box","text":"Mortgage-Related Securities.","page_number":94,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"394edd9e-93c7-4208-a141-6b0302e1f3bd","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":94,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"bb3984ea-8106-41e6-8ae8-865a7b6bfa21","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":94,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"bca535af-b1ec-4182-98bc-e79c41691adb","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":94,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"a28a2884-4a47-4343-8998-7000b0473f92","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":94,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"956bc59d-f872-4bec-a0b6-105164dd7cd1","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":94,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"bd84f406-da58-4043-9b0d-c1a939bbb6f8","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":94,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"4342a607-afe7-4437-bf07-ae28e23c0e78","block_type":"box","text":"maturity or specified call dates.","page_number":94,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"7182ac6d-3cdc-4922-aa94-2fbc6c03783b","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":94,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"91b0cd74-5efe-4dce-9cf4-dd481389be6e","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":94,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"a81cade9-45c7-4e02-8483-27744464e3b2","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":94,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"4c51e994-c171-4b8a-b03a-e30d7adf9c7f","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":94,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"8a0167d6-7e17-4e6c-99a1-234641726607","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":94,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"0dbaa74d-34c4-441b-9a7b-c32677a9a559","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":94,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"19790273-e362-4f98-b6fa-8b414aacd3fd","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":94,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"4c322a92-789d-49e2-b00e-37d24b35e99b","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":94,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"380dd239-265f-40b6-bf8c-2bdb973088eb","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":94,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"84e5fc23-11df-4838-a48b-a7c2211f6f31","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":94,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"f5e1351a-d14a-46d8-8be4-5e74633c62b5","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":94,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"0b8040c0-8cfc-4b89-9624-5ead9895217c","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":94,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"314e0abe-eeaa-4782-b386-306800036956","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":94,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"1f2760d7-7f87-448b-ac2b-46ace15678a9","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":94,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"a0c77475-52e6-48dd-9bd4-18fcc701fba8","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":94,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"7b9e380b-4a66-44c0-a63b-0137c724d905","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":94,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"82131582-aa6f-46aa-8c24-f6ef1ebe7b74","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":94,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"5a563e0a-cea2-4f57-96fc-d94a50eb79d2","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":94,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"3508e0d2-70c5-4f06-af20-bc34a8931b18","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":94,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"918f02c4-e817-4ee2-895f-81230c6682e0","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":94,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"582c6323-77eb-4f1c-b9d3-d65da5bf4224","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":94,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"9f7cf524-2539-437f-803a-cdcfbdc85cf4","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":94,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"9ef9fa49-f7e1-4659-bbad-8fa9bafd635f","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":94,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ee26e75a-a846-474f-b100-035f63858397","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":94,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"b5c09e3f-c02c-4884-8d67-9ce60a2c72bf","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":94,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"12010f4c-0905-4cbc-b714-0426785f6d16","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":94,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"d1e0ae0c-8c4c-43fc-b142-ffc9fd592abb","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":94,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"06a639ac-7152-4592-9a86-bc3d97ee1c41","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":94,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"1a9394f5-ef29-46ff-b94c-e26dc8bff6a6","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":94,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"be08f254-a31e-4d85-abfc-139c934fb68b","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":94,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"0ece8a60-5b5e-40ec-a59d-2a5ed3989991","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":94,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"41b06b2c-977d-4418-8d73-468b54e39cab","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":94,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"2cb6e372-50ca-4e92-be05-e1da9cdb91c5","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":94,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"e7101839-4fda-4ee3-b6bd-5f64ac735a29","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":94,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"a8aa9e06-247f-4ab2-b516-50b79b1cd402","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":94,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"bf3d21ea-756c-4e70-9b64-6c3dcff80b60","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":94,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"927a5063-32bf-4f6d-b01b-9969f2ed279a","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":94,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"39b9687a-9d15-4746-99c0-c726e59e2a0d","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":94,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"913403d1-bff6-42c8-a398-1889ad844736","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":94,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"d0423734-139c-461c-a7f9-0ad3ae74dde5","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":94,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"805694ee-f6e6-4c92-81b3-32a650792422","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":94,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"94cfcc85-30a8-42b1-956b-ae6226b42847","block_type":"box","text":"II-51","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"705da801-2220-4241-b9c2-af5d0353bccc","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0732fc4-8247-4718-9eb5-338d7ad7c782","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":95,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"71de5263-b3a6-400f-89d1-2ff6e4962aa4","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":95,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"fd1f4e79-d939-4666-a1ae-bbaa1fb29aca","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":95,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"8180be22-5cde-4331-a0ad-1a35f3577995","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":95,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"45348bb0-180c-44c2-85d1-c162c924e8ce","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":95,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"b7d31611-3afa-4fcb-ba08-c8ed92104a21","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":95,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"9c6b2dd5-7f32-40df-8fe0-7a34bab4a116","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":95,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"315a5731-37db-42cc-a57a-52e6ae0061f4","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":95,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"fa0ab71e-c28a-44a4-99ae-a06bf5b82d4e","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":95,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"55aec21e-d47b-4bca-9f9e-44f7122b141f","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":95,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"0cc37990-fe38-4082-a177-d9fc7c6f0769","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":95,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"4835ef24-b97f-417d-9653-fbbb175a0668","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":95,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"1a405207-4369-489a-bb78-1b17bad12d04","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":95,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9650c29c-e111-478e-a7d2-e15084b3877d","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":95,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"bfdb3b49-4ad8-4583-b80c-12a67072e327","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":95,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"390acedb-ea8e-4bb1-9da5-319afa751ab7","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":95,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"3468d970-0eff-465a-85c8-4ac1125ecd94","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":95,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"6f4f9198-da6a-46d0-8730-279481781d23","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"691e91bd-31ad-4dc7-b7db-832e94a0a8bf","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":95,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"2c625296-a1b6-468a-a7f8-a632a342c050","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":95,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"30bd506e-e5a3-471c-a137-63ba73118b35","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":95,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"dd614e49-eb60-4a07-b529-c49b1c8592c5","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":95,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"d47aa862-ecfa-4e57-9e39-a49353332c17","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":95,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"b39a49f6-398e-4519-98f6-9725d6bcb644","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":95,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"0e18277f-dcb8-4051-a4d1-1c378176abb8","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":95,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"03cc52da-5448-4411-b155-27d7b0199600","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":95,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"5225277c-f2dd-4aeb-b41c-b6c809d875d2","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":95,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"246f92f2-40a4-46c1-a09e-e93e95e1eb5d","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"d5a5743c-3f79-4fe1-abb3-2c54ed3d8bff","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":95,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"c60b047d-0c97-4f91-bcaa-a9141f4a4148","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":95,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"4d26827a-f6fa-4d45-906d-eadaad9dd2e6","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":95,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"bf73b979-eb62-43de-9a1b-bd27dea36e91","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":95,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"3eaa2fcb-ccfc-453f-a620-ac03964c3662","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":95,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"b483ca72-fa6e-412e-b9dc-ee74c72ee114","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":95,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"2745c4e7-f616-4f07-afec-b8d65dd7ac0b","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":95,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"e7e8da72-67c8-4ca0-8f4f-4eeee7861fe3","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":95,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"39cd432a-801d-45ca-b42a-04fbde8b3140","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":95,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"46285425-c509-4595-9938-9b00342b202d","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":95,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"cabd9db7-35f1-430a-9409-bcea011affbb","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":95,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"978c8d41-dc79-41e8-b9b3-b961f4236e2d","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":95,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"5eba32cb-b40b-45f9-9947-f91ff9b5c774","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":95,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"c16bef5d-a9ce-40a6-b7dc-e6049f916fd9","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":95,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"ffa6f741-9f07-494b-b086-2b336c4bbc99","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":95,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"de3d73b6-da46-4f37-9f5b-d11450adb549","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":95,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"8f9fa7ec-c183-4367-85dc-386ef2498f17","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":95,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"62dec72c-918a-4896-a447-9b9cf0c32bb3","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":95,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"267ffd1f-9acc-45a5-8bc9-659a517d5033","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":95,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"aeeea7e3-3b25-47cf-8710-50f45ee1865e","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":95,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"6b96eb8d-58f0-40aa-8e4d-634fcc3fa65a","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":95,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"5b938bad-e82a-44c9-8b39-f06aed9a6286","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":95,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"0b79d531-64e1-46e6-9efc-b159c0dc8dd6","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":95,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"265fa028-b502-4730-ac34-85c9fb3cdda2","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":95,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"c0f3aba1-5184-40ec-a23e-b04656760e29","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":95,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"45652513-5fc6-4a8e-8a20-c8a5aea0f67d","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":95,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"7d67cfd8-eeeb-4d73-89d9-9ebc752b187a","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":95,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"3b16de0c-853a-4707-b1fb-7e9c88d7e9d8","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":95,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"0de5d293-66db-436e-a6c8-b36689b2e683","block_type":"box","text":"II-52","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88c34b9e-61c1-4205-aa13-08440e13a141","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3533a088-c188-4fd7-959b-390cf6a47a85","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":96,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"5232b7cc-d88f-4306-bbbd-e831a2ab42d1","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":96,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"e0fc637a-d70a-408a-8f98-284bed77d899","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":96,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"7bad0b8b-3593-4105-ae1f-a7950997cbff","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":96,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"ecd6e9e1-b3a7-4f51-bff8-1ebd8e32d2ca","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":96,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"4d942b17-7e54-442d-a5cc-adc049b265e9","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":96,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"123f694f-1f74-48a7-b013-d20331760d86","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":96,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"05bca0af-a163-479c-975a-ffa4d171bce0","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":96,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"3105e8fe-c89b-4f1b-949d-dd6ab06be029","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":96,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"b359189a-9b86-4661-b2e6-6aae28318ecc","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":96,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"d4c3bfab-4f87-4914-93a7-2c9a2e94bc71","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":96,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"4451ed64-6f6e-4314-b273-4fb56c2d53c4","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":96,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"d7508550-891f-4397-bf4d-baacb06e7bdf","block_type":"box","text":"of principal because of the sequential payments.","page_number":96,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"be8d1a08-f4cb-44dc-b752-e0f3fbe3edbc","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":96,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"75505242-dac7-4dd3-acbf-aaf5751e3282","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":96,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"58e606ea-260b-45aa-88e2-33e368187371","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":96,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"d783defb-8d75-472a-85a5-2828cdae616f","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":96,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"a2668547-65fe-4d4f-b9ca-4f8a88ca85c3","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":96,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"e8767f8e-782b-4eba-bfda-5d8df4bd7e79","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":96,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"9e9ef79b-234b-4d28-a968-a36dda54cbc6","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":96,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"476dc324-f39a-4b42-830f-8950896c1ba9","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":96,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"fc9cc5fb-44cf-47b4-900d-0ba139d7adc0","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":96,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1e7f444d-7cae-4eb5-bfef-94726f722cf0","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":96,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"3f7994e0-e079-4e88-8496-5163a9d0c517","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":96,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"3094c854-1856-4e8a-b780-52aab8fa6a5f","block_type":"box","text":"securities of any single such entity.","page_number":96,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"a308481e-d34a-401e-8c51-06a4486a7e35","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":96,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"f11149ea-60bf-45fd-ab17-98028a02e94f","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":96,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"1c40d6a1-fb8a-42d0-afc2-9384e8038691","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":96,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"823d2b5e-b7e9-437d-94eb-cc1ee3bd428b","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":96,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"3e125702-801b-4f72-83c3-06686dfd5b7d","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":96,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"10c25c26-eec0-4a30-97a6-414296870400","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":96,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"06170a14-d339-48f4-a650-e21b8e94fd98","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":96,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"70166aa0-d1ea-4e41-a6e5-98e5fbd303c4","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":96,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"83d51c9f-d72e-4b6a-8eec-a953f6b448d1","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":96,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"06db9794-47af-4311-8b22-fc57acb3665e","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":96,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"a5403893-e323-4860-b356-4f0187582086","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":96,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"6907dc87-8175-46ed-83b7-2d0ef37d800d","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":96,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"83b3f542-1cce-4375-ab1b-2d3531d718f1","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":96,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"a846ba71-799d-4cdb-8d6a-16b9ab5ddcbc","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":96,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"b8ebd45e-adf2-4a28-8197-156ecf1393bf","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":96,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"7b37f5f9-d1d8-40c4-a81d-b06453b99bab","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":96,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"68b5918b-15fc-4e21-9f05-4a0edf6203d2","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":96,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"7de9006f-3238-409d-87f7-df9d508e043e","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":96,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"7fec90bf-7f4b-44bb-9195-1cf215d79415","block_type":"box","text":"classes.","page_number":96,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"ddbea886-39fe-46bb-93b4-04df6f3b30f0","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":96,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"182c5bb3-aaee-457e-b897-260434998c8b","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":96,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"07641ee2-2a2f-446b-9d19-3bc65a6a2690","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":96,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"e4b3ea1c-a3b9-44a6-adcc-cdf2d8766c4c","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":96,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"1574b9cd-93e2-415c-9635-e412fed542bc","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":96,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"4d7a8973-0302-4458-b24b-5e0a43b5f314","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":96,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"bcf5184d-0b20-4d7f-b09b-4d9392534406","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":96,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"754d1956-8fca-4a64-96eb-1b10c7be553f","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":96,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"f04e7493-b07c-4d08-9a7a-31c83e868001","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":96,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"6131cfb9-12a5-4560-9218-0a5180f374a4","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":96,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"035a85fd-1159-43c8-aa77-064a4323fe9f","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":96,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"cf3c75ff-d3fe-43a7-8b00-70e0262de920","block_type":"box","text":"to a designated benchmark index.","page_number":96,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"df2e7760-a4af-4060-8998-e69177b604bd","block_type":"box","text":"II-53","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ad0cd01-0bb1-4e08-8695-5ccd4a3891a7","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a073dc41-414c-42c5-9297-1c526663005f","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":97,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"90d9f3f9-ee0d-4320-82cb-0b39f3261dd2","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":97,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"263810ef-e8a9-45e8-8f06-63266579b40d","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":97,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"5d909fd5-d248-43fc-b6f5-8ac907c80456","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":97,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"2197de2e-3822-4cc6-b879-1f060dc8d125","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":97,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"03adf339-c2bc-436a-9cb0-36f872b7ea04","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":97,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"4da30b00-a3bb-4fa2-80e8-f20e9e0d8034","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":97,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f50d1729-7276-451f-81f5-9d26b6c71067","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":97,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"70464017-3d7d-42b1-8a2a-33768a641656","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":97,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"dd1887ef-6937-4b0c-9cee-32a79213919a","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":97,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"a4203de1-c6af-4a01-87a8-58aa5a5587f0","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":97,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"be563616-6213-4e26-a29d-420ae8682364","block_type":"box","text":"CMO Residuals.","page_number":97,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"762f6bc6-6fd0-4336-87f4-44884af88ec8","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":97,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"1beb0d75-a11d-4044-a401-1aa4748f1abc","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":97,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"87b32d45-d90a-4759-a060-567d03d06903","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":97,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"d4c3fd99-ce2c-4c86-a4ed-e69004472035","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":97,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"6e9a9213-5eca-4c40-91e5-2ac6af0779cc","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":97,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"0cd86f17-530e-4784-ac69-35cc7bd33dab","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":97,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"2d7580f4-ac3d-4010-afdf-6fe2b7fe4048","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":97,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"447e5e83-d549-44c9-ae63-a4e3117deba9","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":97,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"c831495b-c4c2-4a99-8330-97444c25461b","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":97,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"a85d3953-901d-45d7-ae94-f9f81f0af9bf","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":97,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"74587f96-6686-4445-bb1d-6f9b3afb6358","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":97,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"70b5200b-1723-4ee5-bbcd-492154fb0685","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":97,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"5992f8d4-4c01-428b-8a78-9e1caeaf6a61","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":97,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"d5a88e7e-c573-442c-a31e-92a5d6f0d3de","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":97,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"77a623d6-10b3-4d49-a29b-6139be84944b","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":97,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"3fafdf14-dc30-4480-99e0-c0d59ddc3b14","block_type":"box","text":"a CMO residual.","page_number":97,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"25e3944c-35ba-44c8-8dcf-cd5b23416686","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":97,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"f2b49a10-58e7-4ae6-88fa-138f32c3ecc7","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":97,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"110db7e0-ecd7-4f50-a8d3-248225e8038c","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":97,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"a255f4e1-21a5-4d62-b807-cf6961e8dd65","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":97,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"84ea4393-0c41-4470-9760-dd2878b67daa","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":97,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"a5bd5874-a0d8-4298-a106-cd33a49b7a2d","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":97,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"1423ca66-de63-4613-acb4-11c0f08762bd","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":97,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"e4cc7877-d9f2-4ed0-a912-df42b09551e6","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":97,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"951941ea-330f-4368-abdf-c5ea719b664f","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":97,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"c1b9abfe-0a9f-4449-afe7-3a31d39ae21e","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":97,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"2dbf4c5e-787d-4f5d-89b8-61e7c8a6379b","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":97,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"3c7ef92e-b734-4700-9d9d-6e1c1a4b57c6","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":97,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"a530f6ef-4360-4d4b-9720-ffe31e0853c7","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":97,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"5332b2f9-6031-4238-993e-ec9a67f98501","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":97,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"99b8b5d7-0b8a-47f0-9776-39012fb5fb21","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":97,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"5a9e5975-03fa-4a9c-896e-055c279055d3","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":97,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"11e0c6ca-e777-404c-b2b3-0ac6178c1d65","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":97,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"4905b261-c1cf-4757-a2e4-9f06e937ab5e","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":97,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"e22c3a23-d8d8-46a9-a2f3-b914f005551d","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":97,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"2c90d09c-ca6d-415c-ac67-754b9ce11bd9","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":97,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"274b50c1-9e7c-4cf1-b0c1-9e1944962851","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":97,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"2c48b7d4-4629-4550-9308-d71d9d64a562","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":97,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"4fef8934-95fb-4c39-895c-30bc747879d2","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":97,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"108370b5-33a7-401b-aa38-079a7a4692d6","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":97,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"789a20a7-9e44-4dfa-adeb-3b0b21d7ade3","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":97,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a9b45f20-8f66-41b6-a674-0f462ffac03c","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":97,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"fc4e634a-437f-4c24-a4b5-ec8ec33ccf1a","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":97,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"5effe69e-9b0a-4a12-88b9-c70efc64e8dd","block_type":"box","text":"Tiered Index Bonds.","page_number":97,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"c1229a81-a167-44d2-9e52-128c29e97224","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":97,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"d691b182-b9e7-45ca-84b6-813495d952c9","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":97,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"e4a56309-3cde-4800-9ad5-efd29482057c","block_type":"box","text":"II-54","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d42b5ab1-15ca-4789-8723-3a9c6a4f5344","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55ade2c5-565f-43f8-8c60-261f5fba9e12","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":98,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d85c74ff-0609-45fb-8f9c-6dd2adb00049","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":98,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"f6fcc16d-6fc2-4ab5-94b9-5ede06b79cd7","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":98,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"0906b0c3-0abf-4f0b-9753-21213acdf80a","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":98,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"81c3ff79-63ce-4f27-8618-8298e58b131c","block_type":"box","text":"that of a fixed-rate bond.","page_number":98,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"5dc5f40a-99e1-4027-8978-ac9c77245fd3","block_type":"box","text":"TBA Commitments.","page_number":98,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"d473d9c1-112d-489f-b914-6dc6ca72fd75","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":98,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"12d958af-1423-4cb4-86d3-5caf537272ec","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":98,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"8c2febd0-c1b4-4ab7-8a46-b504fbd09076","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":98,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"2d8342c2-cd12-4a76-b190-8e51936350e9","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":98,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"482fc0a7-5b7c-44cf-9708-a7425244a4f2","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":98,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"2427eabc-c28a-4292-9a7b-337ea71ec44a","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":98,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"fe7aae0f-9cf5-4cfd-857a-cdf5bcf91335","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":98,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"1a1c8a12-8339-4f7f-8c9d-a7a5480fb698","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":98,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"00014892-79a6-460b-9650-9af1c31f4440","block_type":"box","text":"below.","page_number":98,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"befc3e90-ca6f-48ef-a0a8-cd163eacc8f2","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":98,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"84bd5b4f-5eca-4a19-ad30-34fa372e0992","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":98,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"df8fac9e-fd67-4bed-8e7e-50b029475402","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":98,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"4d9b5692-286d-4444-a8b1-1f4bf30ac58a","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"9fce7c6a-a93f-4821-b998-470c062ece79","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":98,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"d297ef94-3d9f-4220-965a-119cf27e4afd","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":98,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"88303c91-10e7-4b2d-9cbb-fca0291971b7","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":98,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"5bee7b00-75b2-4250-ba98-33c92226538f","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":98,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"bf60c943-15cd-465a-b186-047c0b7722cc","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":98,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"c92e4320-d072-4a9a-9109-e4136a64b25c","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":98,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"2f48de59-232d-49af-a99d-9e40479bebd1","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":98,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"dda6cf83-6a93-466a-85af-cb554fee90b2","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":98,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"a4d06beb-3044-4dfb-908a-f2e5ae737046","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":98,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"7a109f7c-6ce2-47c1-90ed-77a9a30a08ce","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":98,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"dab50bf1-51ce-4523-b4ae-8d8e04151a03","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":98,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"3bd1eaeb-b767-4708-97fc-586bac30fa21","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":98,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"ec9ff6e8-9c66-438a-a88e-4bcf1e7afe65","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":98,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"375172fb-8d8d-496c-820d-3a1901c5a262","block_type":"box","text":"securities in the forward transaction.","page_number":98,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"8c2e3338-2970-4d6d-a499-80fc195637b4","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":98,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"2b37ce04-2810-45af-b635-7a05b14dea50","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":98,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"b0adb5d4-a216-47c7-b171-646885c49928","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":98,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"617c9d1d-13bc-48b7-8caa-a5e765641cd3","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":98,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"edd5d240-92b6-45a9-add9-946e66524371","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":98,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"68b8799a-3327-46c3-9403-387452972050","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":98,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"d13f65f5-37d5-4c62-a33f-290c68c7b890","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":98,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"f3462dab-5523-48bd-861f-c39fd1f6529d","block_type":"box","text":"securities (","page_number":98,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"9e151ae3-7057-478d-a79f-7d4bf9009253","block_type":"box","text":"e.g.","page_number":98,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"c40cdc3c-8513-4f18-af7c-c313a5ed2067","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":98,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"b8dd9a98-66ad-46b7-a4f7-37bb8ec4b93f","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":98,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"8da9f73b-7391-4af5-ba04-b06d89bc9b50","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":98,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"ff0aae4d-1089-4a8a-9926-a9a877db4468","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":98,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"3892ad1b-4a26-4a49-a543-22d08c4c975c","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":98,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"62464416-c3b7-4d99-9502-4445863105cc","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":98,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"dfc2738f-6e7d-44f4-8503-2b90c02bbd53","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"af4c09b9-e42c-44a3-a4a9-7ea1d0f109a5","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":98,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"f4d5e6ce-aeab-46ba-b2ab-47911e907176","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":98,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"1362a05f-c75c-492e-8393-51c37fca628d","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":98,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"a3b28b36-f97e-4d1e-a700-0f6b245d5e83","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":98,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"74d86e7c-a304-409c-b16a-21ed2b51f585","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":98,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"82f06e7e-3a6d-4c09-8688-39fdd118d802","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":98,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"af9eaa3a-f0c6-4d1b-8be7-47e9dc7960ad","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":98,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"fa9d8874-cf0f-4554-9899-19f10b97f8fd","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":98,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"b1e7fe37-8c7e-494c-a6c6-e8597f8d72c2","block_type":"box","text":"Municipal Investments.","page_number":98,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"872c3519-1cfb-4ba5-bb2b-9ff6a9340771","block_type":"box","text":"II-55","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"629a3739-311f-4c1d-9908-b90659ff93cb","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59197b49-1941-46cc-af6a-a6fa4527853c","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":99,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"aa709b05-55af-4f3b-bfdd-55651266ad96","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":99,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"40e8b058-7cb8-4d65-be89-0aa4a8157b6a","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":99,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"f5c6385a-ff3d-4199-829c-09e0c52c1ca3","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":99,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"90f649cf-82ee-4a62-a6ab-a3b05dfde4db","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":99,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"74f40ecc-15d6-4012-aec5-149a08af7fa0","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":99,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"5b77528c-c45f-4d12-90f2-bb207aed2b9b","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":99,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"4bb80430-783b-412e-aedb-e3f6b9242043","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":99,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"780ef0bf-b1b5-45b3-8808-8d70393e039e","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":99,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"a1fc11ae-ad13-4814-85d6-3c0b4a9b7ac5","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":99,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"31991503-1504-499f-9ee5-1e0d663ce8dc","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":99,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"3c9cb8c3-cc52-4724-8e29-394b57c23394","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":99,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"b9b1182c-1dc3-4ec4-aebc-0a63ca5a5a37","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":99,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"977d3e9e-4b13-413b-a9d3-fbec7d3246c4","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":99,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"e476eaa9-caa5-472e-a9bf-41279c20af0f","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":99,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"a0f47f77-1ef8-4526-997e-4db52df9485d","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":99,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"3ecfdea9-9e1a-487d-96f1-c85af43f1c19","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":99,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"0009a06e-72f1-469c-80a4-14674acff9b3","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":99,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5ae1be37-9682-477b-9a70-b5c07e51f3e9","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":99,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"efe3f76d-cb24-4188-b438-1639dec8c74c","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":99,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"5a714e67-0dc7-4db6-b1fc-db11e8d56c5c","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":99,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"2e9d01d8-bded-4cfe-a7c7-90f911980297","block_type":"box","text":"The risks and special considerations","page_number":99,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"77665d2c-1c29-47c9-8836-41c259b7d6bc","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":99,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"17e3bc49-87a5-40cf-9129-d90b320813bb","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":99,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"ccbeabc2-6686-47ed-9f68-727dcb01e0a3","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":99,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"4442c9f7-bcf3-40c7-8bd5-c41f978e01d4","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":99,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"1ec3b0cd-c710-44e4-aa64-5afa6f08a6f7","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":99,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"7dd6f33d-6203-465a-b816-cb6a4ca0720d","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":99,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"fffdb321-7e26-4e16-a6c3-edb0f2db94a2","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":99,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"748a3dfc-f5ec-412b-bf75-9615c8b2f7fd","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":99,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"8da70fce-eaa9-4a94-9c45-d4dfdbb054b2","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":99,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"0437afb2-ea70-4311-89ae-c72d5bc3a177","block_type":"box","text":"II-56","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0cea2948-31f9-4b2a-8bac-8887731d22ce","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"061ab9a5-c379-4b44-ae11-eb57172031d4","block_type":"box","text":"Description of Municipal Bonds.","page_number":100,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"90f0b093-fc7f-447e-8211-e522640657f6","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":100,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"204b3d90-cfb1-4fa8-a679-8204541dc304","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":100,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"42932166-cf8f-4222-a3ec-dd2513bf68ea","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":100,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"085ca925-f3ef-4540-b2f2-a340bb640587","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":100,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"7b8a8876-7fe1-4597-bb1d-5f35f070fe6a","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":100,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"f968c3b2-f482-4aac-9bbd-0ed3864cb991","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":100,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"d870cff0-4eeb-477a-bdf7-7443c5b703ba","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":100,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"3b5b3a84-c728-4c50-9e37-6343dba809dc","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":100,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"de2aace1-c94c-4c66-b5ff-69931d914d62","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":100,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"2f6ef3bc-68af-43b5-be08-76666b864b80","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":100,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"7a5a429c-12dc-4eac-b6cd-5f129e164bf4","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":100,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"dedf673d-f602-4353-880a-39eaf1641336","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":100,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"546519a1-4d43-4162-b6e3-ca926c226ba9","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":100,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"8c474172-4029-43bf-90c5-d072b6d475f7","block_type":"box","text":"General Obligation Bonds.","page_number":100,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"9313e273-5eaa-4b53-8ccc-f94314ceaa27","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":100,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"46ba5fa3-d24f-4fc9-af43-28e761e2b603","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":100,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"07043964-73d1-4348-9cf3-93e5957c4e17","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":100,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"0d29d8c0-9d54-442b-8828-ebcbeb9b74b9","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":100,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"fb94d31f-1198-40a8-826d-cd119c1dc8d2","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":100,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"836d2f64-6d81-4991-adb4-6a2a25a476d1","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":100,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"56a5a962-8496-464f-9dda-2a4b8fb5ed98","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":100,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"2e122423-56c7-43f8-8a97-f4253fdce6af","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":100,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"57d92545-1325-49d7-b444-37ac007e9ac2","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":100,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"d80be552-7d93-4998-9fb8-a7abc4dad6aa","block_type":"box","text":"Revenue Bonds.","page_number":100,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"d6ab66d5-bdb8-479c-a88b-2ea45da35f58","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":100,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"61de21b1-7194-44ee-903c-70c8120d194f","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":100,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"68fd15fb-c96e-4bfc-b761-2fcb068c407a","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":100,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"1554ab6b-e357-4066-b57c-116fb590c052","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":100,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"a0658d76-cf93-4027-929f-39cf9766bb51","block_type":"box","text":"viability of such facility or such revenue source.","page_number":100,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"36e0233e-e036-4d71-8bcf-09c1944f427d","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":100,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"e97cb46f-42bc-4869-a46d-18bfe849d3d8","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":100,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"afbf6254-c2c9-4cec-8b74-90432cc62aae","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":100,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"355d5b30-d6f7-44de-9053-bb0375f60f7d","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":100,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"8833197a-8c8e-4eb2-a4fd-01d5b5882667","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":100,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"09759238-c518-4345-9e45-39c2993ee27c","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":100,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"14b0c7a6-47ec-4d21-afa4-6fabefd30744","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":100,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"1f49309a-9279-493e-b18b-eb1cb977d829","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":100,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"e12e42ff-ae55-4812-8140-fe9ee15f39a3","block_type":"box","text":"PABs.","page_number":100,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"33dcd953-c281-477f-a942-1781ca635a84","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":100,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"5ed8c8bf-f426-4bd8-ae7e-1489897f1081","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":100,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"4b46d6f6-7f92-42de-a39b-fd4784893853","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":100,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"3fd5e964-b655-434b-9b56-26e74d6da8e3","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":100,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"f81f25f0-8bf1-4484-b1a7-303bbf0daefa","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":100,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"0fe8e795-aa51-4d07-8896-fe40dd2bc04e","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":100,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"63ef04be-a26b-4644-8645-1e19a3e37b28","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":100,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"d8d0bc29-96b2-4a63-98fd-b3b79bd588fb","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":100,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"ce7bebec-82f9-4aa9-ab72-7833469577e6","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":100,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"b341edac-4896-4c71-8776-13b9a6afde30","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":100,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"83f9f1cb-a4c3-4fc7-acfa-8fafa98bd217","block_type":"box","text":"the par ticular facility being financed.","page_number":100,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"30254759-12ba-46ce-a226-0c987f95b3cd","block_type":"box","text":"Moral Obligation Bonds.","page_number":100,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"e64663b8-e9ed-4ff3-97ba-bbb7700c0d6e","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":100,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"20d51d62-f1ad-4d37-870b-339805976e0b","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":100,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"4714c00e-7325-4235-996d-8c7ac7020a7f","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":100,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"18be45dd-469a-49d2-9230-3e08c143c131","block_type":"box","text":"that issued the bonds.","page_number":100,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"473a2fb0-61b8-4bf4-acfe-a6f7e164e426","block_type":"box","text":"Municipal Notes.","page_number":100,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"3f02582a-81f2-4e3e-9658-c18bce8c075a","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":100,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"c92e2290-8ce7-47cb-8dfe-f1fb0005ade2","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":100,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"a25dcb54-47e7-4d0f-8d1d-4b0e460af9f6","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":100,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"d6613180-8862-4534-80f4-cd4892957209","block_type":"box","text":"II-57","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69395243-04eb-4dc1-a788-9a1535bf35b7","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb82ab65-f4a0-42d4-84f9-cc08a623f09d","block_type":"box","text":"Municipal Commercial Paper.","page_number":101,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"451b96b5-c51a-48c8-84e0-f0b88a4fc9c1","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":101,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"e3228fae-9247-4ff4-9b92-b5e49187c4fe","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":101,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"5b2ab1ce-89f9-48b2-bf32-802c1bcfb235","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":101,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"27c8fce4-81b0-4ad1-a773-7b17fea78636","block_type":"box","text":"Municipal Lease Obligations.","page_number":101,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"fee96f0f-26bc-470d-a058-88b328fe4b21","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":101,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"7f5ef581-d39a-4e08-842c-764c964b4433","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":101,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"6cb4baac-a68c-485d-bab5-ec345d5aea9c","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":101,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"af4342b2-844b-42a3-a388-ed5338cde6bd","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":101,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"fd5bc49e-8fc2-47bb-a965-de9f329081f3","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":101,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"3891ee29-e25f-4438-b280-7c3d82eac6d6","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":101,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"a1f3871b-a5e3-49cc-936c-dca10324050e","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":101,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"027268f4-2322-47d9-b7ce-b5eae4c7fcbe","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":101,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"ef850de4-4f74-493b-ad7e-282e1cb531a2","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":101,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"b48482d3-4cf2-4e37-b26e-419b517b7578","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":101,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"668d8617-1a6c-40c8-b364-5d8edcea747b","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":101,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"92e8760b-df75-4afd-9517-91b2775f11d9","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":101,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"3f46da49-62d3-4356-9cc1-6c7f6590d92f","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":101,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"a0b72cf9-4ebf-46b8-a94c-8014a85c3b51","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":101,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"2685da79-650a-460a-95c4-45c959cb7a72","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":101,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"3c07cb71-50cc-4672-a4eb-13a2b09bf47e","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":101,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"a0ed9532-3e7d-4148-866e-1b94044b132e","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":101,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"8ed1cd26-42d3-411f-a853-13b500108b6d","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":101,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"2f35d3d6-26b6-4c9a-8b7d-afad61e25f8f","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":101,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"d05f572d-1f93-44c3-b09e-46c9dfc19405","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":101,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"3d92a6f6-f070-4772-968b-b143d566cd7a","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":101,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"ddbd3e44-1511-46ab-9461-127094c5ac41","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":101,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"780e214f-b70c-40ff-807b-8d17edbc8de1","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":101,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"7ff3228d-0038-4a23-85d6-34102745122c","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":101,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"2770acc8-af48-45f5-80c9-f4e47ad59478","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":101,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"05e61629-f2a6-42e5-8dac-d8e8b784471d","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":101,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"4419c3f4-b09c-4201-8bfc-fbd986dbdae8","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":101,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"89afd04c-2a9a-49e8-b0ea-bbb7b4957461","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":101,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"ba58cce2-4346-4a1c-80a3-2a0a3ae5d0e4","block_type":"box","text":"Tender Option Bonds.","page_number":101,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"84d5af77-792c-4c13-a41b-29ea1eb64499","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":101,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"e10f173e-9630-4bb1-8b42-103ef565e38f","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":101,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"5920259f-3146-47dd-9d72-5c4e83d17a18","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":101,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"1b9a4a9c-21dc-4fab-9334-0da07d27f6e0","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":101,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"81e613ab-2d58-40da-978f-4d315c82ec45","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":101,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"2aa44815-dcd5-471c-8fdb-6aaa64d30ee8","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":101,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"e272e630-f489-459e-b33d-0a6704048859","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":101,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"90ca7d63-06ad-4e73-b110-387832bd49cc","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":101,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"83b9ab9c-b52e-45f9-94c1-940dfd755f0d","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":101,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"fab8e458-b660-40ad-9c75-771f41ecab01","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":101,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"9a0a15b1-fd97-4e6c-97fc-c12c8cedc39b","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":101,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"ae1308dd-43bb-469f-8bb2-3db282fdae2f","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":101,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"e83c65e2-3897-46ae-b4a0-fd8a0c7fb517","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":101,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"a1445eb0-8f0a-4a32-af8f-98a1065c960e","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":101,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"8c2445f2-693f-484f-971a-df09dab9d7df","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":101,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"a85e3af8-7300-4c01-8572-b7253a7a148c","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":101,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"4de055ff-08e3-4669-88dd-49c58139ed5f","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":101,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"0980427c-f399-481c-b8a6-d4d3134fc697","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":101,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"893552d2-0482-4cbd-9f5d-f59512be7307","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":101,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"346c89d9-a6ba-480a-8b1b-9fa6959b0b4d","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"8203d886-097d-4918-9a86-a07c9e7f229c","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":101,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"d75617ce-b2f6-48de-9440-02a6f4c73de3","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":101,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"d4aed48e-3bd0-4848-be9d-1c5fb3166bcd","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":101,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"9293d728-f78b-4e02-8bb0-496fe287f194","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":101,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"611170e3-ad04-49b2-9124-f568641850f2","block_type":"box","text":"II-58","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a6ec6f09-4355-490f-b040-ac578a3cf610","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f14ae790-7386-4139-bef4-eaeaa1527649","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":102,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"1750bb53-e0e9-4b0e-8c94-4c4c5d2ea06f","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":102,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"0794e43e-3ab4-4769-8eab-9ccfc16304df","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":102,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"04be52e0-f7d4-48de-930d-a4e20e77eeb5","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":102,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"8ba78e2c-6f13-40d1-bfe9-8235a1e3b9a6","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":102,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"91200d69-ac74-46e1-949a-34fab9cc64e7","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":102,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"87265705-6e64-43ef-8ee1-93c2dd82e884","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":102,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"643f303d-b298-4261-b3d4-84680b40bd8e","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":102,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"0475f0b8-65a4-4a26-a49c-29298b57cf75","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":102,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c90c0d6a-0081-4f1f-9a13-5bb32ed0fdeb","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":102,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"fca3cec2-14c2-4622-9168-df9faf5ed933","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":102,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"a9768aae-21f9-4db3-8221-32dafe6bbe26","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":102,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"75576a2a-fa0a-4437-b746-74cd4c4999b6","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":102,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"871ff5a8-1098-43ea-9c31-879a2406ce07","block_type":"box","text":"issues.","page_number":102,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"c29d2405-5c84-4d05-add9-85d987d0c201","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":102,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"c1dae561-d5e9-499c-9bb0-7f4ca21fda81","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":102,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"decca75d-ce36-4480-a816-2a3e2bd06de1","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":102,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"74f84fa9-7444-45ea-8cf5-7b21513e2a3f","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":102,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"9b21b773-e698-4141-98be-0189e93a901e","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":102,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"89e13e52-379c-4c97-a272-b0071ef96e11","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":102,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"55e0df26-be8c-4f17-a1c5-a6e9acf081a1","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":102,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"5981e865-94b2-4419-9fea-e91c64730227","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":102,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"38b91436-d0bb-4d08-900a-c6873c9565c1","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":102,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"2226b012-1401-48f6-8b33-516b749e177f","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":102,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"b9e93f5d-bc3f-49d3-bca3-0fa249677861","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":102,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"92b59149-6311-4f0e-8ce2-763a197b941a","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":102,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"f36d5465-e831-4f41-9385-82a9ed40adda","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":102,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"db028bf6-83d1-4b07-86ad-26a19499c468","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":102,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"d5b192b9-f63d-4b27-a35e-6b62e87d6aa6","block_type":"box","text":"i.e.","page_number":102,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"758842ef-0790-46af-9603-faab72329b14","block_type":"box","text":", the Fund). In contrast, in the","page_number":102,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"f69b059d-3708-4663-b139-fbd796e0c78e","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":102,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"d286c111-fc35-40f5-9cd1-0bc91c06e641","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":102,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"e3414775-1a3e-4541-be2b-601c5de37bf8","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":102,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"4ca556ee-a246-4b84-a6e8-e6510394d90e","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":102,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"6fd25eaa-6bd5-496c-a47f-2fe146387ebc","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":102,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"cd928ace-c99e-4002-8b5d-5029972b541a","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":102,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"bb79ad5a-5937-4f30-b868-b5656909980e","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":102,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"68c8baa5-aa5f-406a-8820-c6544230348b","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":102,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"68ee9618-d16e-4cc4-9501-b18044ffd4de","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":102,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"c10f7e10-4263-4229-b773-eeb6f26a2cac","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":102,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"4c6d6594-9068-49c4-96b2-b21d0cd7f7b5","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":102,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"57e940fc-2f5c-4cce-a156-3324fc7bc2c8","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":102,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"ef0b9274-464f-49c2-a787-f293a0f1233b","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":102,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"7ec33815-4ad8-4a6b-af1a-e73883b6abec","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":102,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"cd636256-6179-4752-aeb8-3db6e88dc126","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":102,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"7e539fd5-a2a2-4228-98dc-8d91b2e777ae","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":102,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"d0d8de68-272e-4f79-936a-02016503dd7a","block_type":"box","text":"Trust.","page_number":102,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"4fca5e04-b213-4698-b7ee-79a470183e63","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":102,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"99f747f2-4e34-46ab-b3d5-a97b25c3d3ad","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":102,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"03a3e4a8-80f3-440c-a855-6b5ccb578756","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":102,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"4b5c6cbf-1624-4ac5-a203-b7d288af16d1","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":102,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"0ef8724b-a055-4ea5-9509-8b362b303352","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":102,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"ac9f985c-80fb-40a1-a4d5-5580320f3d54","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":102,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"9c1c6494-ea09-4cad-bd20-7767ee70fede","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":102,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"bcffe4fe-356d-4649-80fa-478e23c89491","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":102,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"d986aed0-d49a-4b4b-899f-310771620a49","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":102,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"68a766c8-5c4f-4740-8a41-4235b3a6bcbb","block_type":"box","text":"II-59","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d79199e5-f24c-4c98-bf7a-8feb8d41e45d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"871308d7-c8dc-4cbc-898c-beeafb033108","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":103,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"56547809-92ac-4081-8d96-cc2121342733","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":103,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"a324585d-0226-42b3-8f43-d0553e338ec5","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":103,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"2c76f8cd-c71e-45d0-8480-edfe823cedb5","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":103,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3df7e4a2-727a-43bd-9c2a-821983732844","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":103,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"66d9f456-d071-4875-a86c-17124cda99e1","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":103,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"a780e472-81e3-4fd8-9dcd-76728fd54f86","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":103,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"8f29b0de-39f2-40a0-b1cd-9d218b04a7ab","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":103,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"4ae37a3c-56f8-4728-a56a-31f183534fd2","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":103,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"a32af4d6-3670-444e-80b6-7e644c40dd88","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":103,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"98c063be-c384-474a-880a-fba38067e7a8","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":103,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"3ff618ff-695a-4f66-b478-804bbe6c9beb","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":103,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"e28aa53e-0674-4581-ac4a-46c413c78e5a","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":103,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"1be1b24a-aa77-4426-852b-505e6b164ac6","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":103,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"4d39b9ba-1bf7-47d8-8a14-c856c6dc5a6c","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":103,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"1f9b6a19-8382-45bf-9826-689356add179","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":103,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"fafe45fe-8b87-4511-afeb-3c999598e365","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":103,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"e83c5a2a-6afe-41ee-b60d-73cacc71aa43","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":103,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"c670de30-22e0-4bfa-bc54-e74ebc8ae300","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":103,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"ee2d063c-2295-4968-a66f-c4e5f57106d3","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":103,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"250399be-cc17-4ab5-a09b-ee611e2cdca8","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":103,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"535227c7-09f5-45c6-930b-b5a154a60492","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":103,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"b2a51e03-bdc2-4d6f-bb7d-47e9929416db","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":103,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"59b7e281-77dd-4688-a0e8-f49bfa685a12","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":103,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"22dc26bc-c20a-470e-a46c-55ffbbb62c5d","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":103,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"f52a5618-c55c-4349-8dcb-2f59503310a6","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":103,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"ff3aecac-6046-497a-adba-9a94c3c0e966","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":103,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"3baf4950-2246-415c-b21a-d5edccef3820","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":103,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"6e7051e4-a6ab-4057-b089-4f815d1344d9","block_type":"box","text":"i.e.","page_number":103,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"fedf2a69-e4ab-4976-9599-c87e1be13258","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":103,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"b8481e5a-939d-47a5-8326-d4dfa1189a7d","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":103,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"d391efa7-b183-4410-af81-72516c41c80a","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":103,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"e8ece399-2d8e-473b-b3f7-4621f796b9da","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":103,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"1a2c57fe-ab5d-41a6-827e-1774520fa66c","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":103,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"959484fa-6262-42cf-b5e2-3a449c7d7196","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":103,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"754cd310-b3de-44ab-aca6-1804d6d04aad","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":103,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"6be69811-55d6-4669-9eb6-d6c2ff0f77ff","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":103,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"d1cc6575-1908-4141-b442-14f1c80b34cc","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":103,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"a5c30150-7323-40ec-be3e-8eaa1ad56092","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":103,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"ad32463d-a056-4d61-9aab-fd2a9d66badb","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":103,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"83bd96c5-4bfd-453a-a8c1-d520f1ee0710","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":103,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"34310b59-2bb9-437f-a288-cfe105da93c7","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":103,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"18abf18e-c2b8-4d3b-8e8e-6d79a06d438e","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":103,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"3d237e66-905d-4eff-a890-feece9d51ce3","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":103,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"3cd6529a-3b94-4266-9f4c-fcc1c2568d1a","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":103,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"d7261023-f445-4be1-90fb-54c5afef176c","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":103,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"a655baca-3e04-4fae-9217-d060609825d2","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":103,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"4c4ca746-6925-48ef-86fe-16c5e24e8ca6","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":103,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"82583fbf-830d-4cb6-863e-beb2c2c15129","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":103,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"323799f2-de6d-4d20-a5fd-915cf02685ac","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":103,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"8ab6c702-03de-4934-8d4d-677b7fd8131b","block_type":"box","text":"market is not yet cer tain.","page_number":103,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"6b1bd158-92e5-47aa-a53f-67d25ec4804c","block_type":"box","text":"Yields.","page_number":103,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"d3ca70b0-dbdd-490f-9433-6c54546e30ac","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":103,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"84f32173-6f7b-4fb9-9801-e0eefae6a8e4","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":103,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"72c8ce9e-23cf-4d57-9230-9624175a4e5e","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":103,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"fefc51a4-1fa4-43c6-a07f-9208724f1623","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":103,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"2b29c25a-89f3-4794-8319-4d12561e44e6","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":103,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"91d220f3-7720-4af8-be84-9d26012de99c","block_type":"box","text":"II-60","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"087fa371-9589-4a9a-afb5-f6649fdb7b75","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f42f7779-5816-43ec-96bb-e69dfa8690f7","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":104,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"75297e00-ed16-4000-9b69-101518607e74","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":104,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"58d3cf76-e7e2-44b7-ace2-6f5233349ba2","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":104,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"1be673ea-0164-4b76-aebd-a7e89626928b","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":104,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"80e93cb3-ea71-4de7-8bd5-b996113f91f8","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":104,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"126cff35-37ee-4d86-914c-af37640785f6","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":104,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"e33eda5f-1817-4161-824d-0bf1a713bbb1","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":104,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"7896afbb-0c7f-410c-bd58-52335c5a49c9","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":104,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"a3731fde-1ec8-4fb2-bb5d-60948a629ba7","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":104,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"861601e6-2434-4740-b1e2-2b9790ea088b","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":104,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"af53e062-b199-4f69-a8aa-796af1189084","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":104,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"d031076e-d918-4657-b334-a118d2229f05","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":104,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"7420b142-0697-48c7-a1b2-885e5151830b","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":104,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"ec9da3be-6746-43fa-89d4-7875f0020758","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":104,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"5a328afe-ff56-46d1-83fe-60d37631e420","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":104,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"ab8ff187-dac1-4f2d-a57a-6af4b4930a7e","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":104,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"1006b0a3-6460-4857-827d-70ea5e63ab2f","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":104,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"2fed0813-ca7e-4aad-98d2-072e8d45feda","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":104,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"bccd5861-7585-41e3-a7fe-19d69750ab4e","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":104,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"545c6364-1428-4a7e-bbc0-0402dd3c0c97","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"0bd49426-07ed-450e-bf07-161888696ada","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":104,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"f926aa4f-8383-4541-904a-051088168c0a","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":104,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"fa2f391e-aab3-4776-b2cd-318cb3093edd","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":104,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"72faf070-a8b3-400f-940e-30491113a6fa","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":104,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"526e931e-c6c9-480d-87cd-c91701197224","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":104,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"7deca8a8-037a-4308-902b-b81d6ca44bbc","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":104,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"f26fb9d3-8fd4-46f3-a96b-26815c204fb9","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":104,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"aa206895-214b-4f38-8fd3-055b6730645a","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":104,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"26c52472-86a3-44fc-8833-40230f56f76e","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":104,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"0648277b-014b-4bd6-8ccc-2dde311cb66f","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":104,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"e482fb3f-d525-4a97-b682-64bcb9f805af","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":104,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"d4e7ca48-fd2f-457f-8a5e-508e4047de50","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":104,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"31cde3c7-1bc2-49b3-95dd-ab0255de705c","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":104,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"46ee4506-15b3-4f85-907c-993a747ebcd8","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":104,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"f715a389-5bda-43c6-8885-6fe19c58c757","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":104,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"ef38f5a4-7309-4aba-9a4e-9c26096c2c88","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":104,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"358e2c1a-12b4-480f-8380-d2adc7a26ba1","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":104,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"c044340c-7aa5-4f9d-9a9d-a43aaa6cfb71","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":104,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"90d238b3-860f-462d-bd10-fa43aa09e13f","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":104,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"6464fe08-66a0-4be3-85f0-6cb234d659e5","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":104,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"2aba0783-8cc0-4517-9e00-ced5eacaf64c","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":104,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"55c9ee8f-ff5d-4ed4-a0b7-8540f97a9c5b","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":104,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"20c05515-e132-4141-b69a-734d567f1c43","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":104,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"9e5b6f79-b813-4507-a0f5-b4c07f43d7fb","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":104,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"728c2b3d-bc82-4d6f-b678-c897cc769fc3","block_type":"box","text":"Call Rights.","page_number":104,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"6e2bb19a-6ec1-4b72-880d-b87d16296449","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":104,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"ec399b1b-59de-491c-b552-86871ac297e7","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":104,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"e03be071-1695-45e8-ae57-74f0900a74e9","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":104,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"963c395a-5c51-4369-bc0f-26f62b6d8298","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":104,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"de2e7715-99b1-4a3c-8e69-b463ed378285","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":104,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"bd3f308a-0ae2-4d51-a752-5bd146560e22","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":104,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"63248d70-b05d-47b1-babe-db20df843d03","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":104,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"732f5878-8624-42bb-ad1e-10a58c9b452d","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":104,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"8dd39c6e-f8b5-49dd-849f-4b05a5b53e93","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":104,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"ef4cc7ba-a8ce-4067-b284-6f1eee81b6db","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":104,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"4c94f1c3-f366-4c26-8c1a-ac144161f107","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":104,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"382cbe48-877f-4d05-bc8b-0b06263344de","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":104,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"663be094-7f88-4cdd-bb6a-e99ec1b05da6","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":104,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"34bb08de-4683-4f7d-90c5-01d1c1f535c5","block_type":"box","text":"II-61","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"caffdaa1-37bb-498b-a075-113616b9cf9d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec942576-c55a-4359-b870-f0b52b8a836a","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":105,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"3633fffc-ca9e-46c7-8441-b59ef46cdf51","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":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"fa91da9a-4f4b-4820-9fad-46b44d51a1b5","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":105,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"ba106ee3-21d9-4dde-9402-5f8fea5f91a3","block_type":"box","text":"i.e.","page_number":105,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"3ed1f165-f5bb-4cba-afa6-f64856ea76e4","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":105,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"6d4b5280-4f55-4002-9d5a-24e3ac8b17d7","block_type":"box","text":"rates).","page_number":105,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"38f13802-af3c-48e9-bc38-cd03522b4ac3","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":105,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"49200f09-2802-4dd7-b3d2-e030ff0caf6b","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":105,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"5ed6a134-9037-417b-ab75-47124b900090","block_type":"box","text":"e.g.","page_number":105,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"ca654af9-cf88-4546-96ab-86a0597d5b8b","block_type":"box","text":", an exchange of fixed rate payments for","page_number":105,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"a7e84e37-afcb-46da-b96d-20d62ee75728","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":105,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1a66549f-6619-4b24-8bbb-dc655a0201d7","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":105,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"6e61b01a-6da6-452a-ac1f-0c8662ea653c","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":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"94a8ca7a-1df4-4469-b8ff-ce02a08a04ce","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":105,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"2cba9227-3fab-418d-b677-ed82d912013c","block_type":"box","text":"with the same attributes as the swap (","page_number":105,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"3ee92d41-1a08-49cd-8378-6a6fd9b4fb27","block_type":"box","text":"e.g.","page_number":105,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"39c6a34f-36a6-4c3b-ac07-bf79057713f9","block_type":"box","text":", coupon, maturity, call feature).","page_number":105,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"d63f4798-09ea-48da-a30e-e0164dc43bb2","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":105,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"ffb56352-ef87-4cc2-8bf9-a4f4891ef5f7","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":105,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"cc015d32-8129-4a0a-8e4f-d1b458a44aa6","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":105,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"32c4ddff-e5dc-42a7-9590-dc452aaba79f","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":105,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"3fe33bb4-7146-4f5c-bc64-e6cffd6bb596","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":105,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"e3a8c383-42c1-4d31-8266-32924dc9b4ea","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":105,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"7f6702f5-d627-48a0-9eb2-f268db546c47","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":105,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f6793e48-e932-4c68-9e23-2c5b60c253e3","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":105,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"4a7c67ad-3f69-4ea3-af55-1510fc486530","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":105,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"4fbcc927-0cc1-4641-91d1-731e6a0d0b80","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":105,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"3c5f7ec0-471a-4723-9d30-a68ec9fa1211","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":105,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"4d9dd1fa-02e2-4fb0-b06b-8dff1f9e464b","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":105,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"43bfc31f-2218-4213-b8a1-d68d4c1f9867","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":105,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"10ffdbb9-e97d-46b0-b110-eae14591675f","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":105,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"17961024-6bee-481e-af2e-0a142aa922b2","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":105,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"42fac70a-520e-4d12-99af-92aeff99801d","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":105,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"bf966a4b-819b-4fa5-b8f2-dc466705f90f","block_type":"box","text":"Insured Municipal Bonds.","page_number":105,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"640b7c31-e353-440d-9255-7b5f8d507bc5","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":105,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"bd7215fe-b81a-4b0f-b35f-278885d23166","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":105,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"1151e19a-2711-43c9-8cfd-e91452dae829","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":105,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"d49a7b49-d213-4197-b14c-df0d91a7d486","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":105,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"783498d5-0474-4086-8def-e1c03812b0fe","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":105,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"d219724f-cbf1-4db7-8533-f48ba42f1cf4","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":105,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"98d4d641-9a41-4845-9c87-a37278dd5fdb","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":105,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"f3c1ace2-875a-42ac-84e5-0e75a3d9116e","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":105,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"9603e0cf-85a5-4970-ac2b-8463c4a366cf","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":105,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"f425e4d8-60b0-45ab-b84a-91c1a8afbf60","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":105,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"202c0fe6-b5ea-4993-a6ee-9abd9e63dcb4","block_type":"box","text":"bond could drop.","page_number":105,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"fd15b20c-fdc9-4883-8cc0-ae44d8d5f166","block_type":"box","text":"Build America Bonds.","page_number":105,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"38d86cd2-4530-480e-b865-dbfc1ea05352","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":105,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"7cc318cb-a294-4a29-9cb9-296269fed831","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":105,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"55ae661c-e786-49be-bd08-092fff003d52","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":105,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"1786fe3c-0365-4bf4-99fc-faf3ac1570ce","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":105,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"98b4d5a3-e933-4a49-a4bb-09fc66a68feb","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":105,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"0cee2322-9de5-4105-a5c2-b0e4aea019cc","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":105,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"7da79566-4c14-4107-a24a-81cc88a44fbf","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":105,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"daec3d07-3861-4a43-935e-67fa4f35c138","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":105,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"c65b71fc-25e0-478f-86fa-24b1113085c9","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":105,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"615fc857-5269-4ded-a8d9-e3eb9cb706a5","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":105,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"0a0cc85e-5c75-48c6-a484-c1d309630d65","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":105,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"8d6a3135-b766-4f3f-87c2-ed3e099f047f","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":105,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"6d71b7e8-08eb-475f-a03b-56a0ac952c8f","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":105,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"a0792d0b-146a-4c25-85dd-6adb0520187a","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":105,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"23e3679b-f9a9-41cf-8a22-90f0d92cd33f","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":105,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"cca5f71a-51b6-40ac-be61-70f3b4791a25","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":105,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"de5239f4-f8f9-4ebf-b2b8-9a048896912c","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":105,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"971dad22-5756-41f8-8767-7aa3c780bf8f","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":105,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"a71dc305-71d8-4ddf-a8e5-db5fdd39b2bd","block_type":"box","text":"II-62","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b873c37c-4191-4f89-a023-1fbe5ca976c2","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"456c9c1d-87af-447b-93bd-de9f6a2f9ba2","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":106,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"cf611194-b871-4051-b489-0b5fe9287461","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":106,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"dafb8c96-32af-4f65-8644-cbcd4df32f8d","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":106,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"5465cfd4-a0a0-4152-aa27-5847c58fa874","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":106,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"4000485c-ee0d-4909-b916-fad99f7e30f8","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":106,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"ecd09ddb-7852-41fb-8f0f-d9b42f07577c","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":106,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"7fe2a007-c6c5-4624-ad70-52a000b6345d","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":106,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"aeb733e1-4aa4-465b-8f2e-93a48a105036","block_type":"box","text":"their face value to the sponsor (","page_number":106,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"a4413e18-b957-47f7-a603-f4058a377e78","block_type":"box","text":"e.g.","page_number":106,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"8026743e-d5fa-4199-ac38-0153b2739593","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":106,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"a14a2edb-1c3b-4676-953a-fa1ae2eec739","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":106,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"8a473d82-4426-4bd2-9b97-1f7956b8c91d","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":106,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"7a060edd-f037-4a79-80dc-f596fe3fb54f","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":106,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"15bb68d0-628c-47ff-9e82-32a28ed2ddad","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":106,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"7bff6ec9-0b63-4ee6-988e-eb745f5e59fc","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":106,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"443eec0b-bbdf-454c-8df1-46b41d250f50","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":106,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"5f1fa010-b03a-488b-ab11-f467525addb5","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":106,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"4fc7442a-1576-4bf5-aa6f-85d6cad9c2b0","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":106,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"1303c004-fedb-4a29-9d82-da09fadf5e47","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":106,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"f403c580-1b6d-4cb9-955b-316699c35b11","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":106,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"829d63d0-fdf5-41a2-b327-beacc5354ecc","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":106,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"a4680f35-ab95-48d6-a334-abe9f412665a","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":106,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ce98b857-6264-43fd-8b62-adaaeecd2ec3","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":106,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"126eb8cd-0327-4d3b-ab69-6049e8c8f23d","block_type":"box","text":"such opinions.","page_number":106,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"b49411b4-f7a7-438c-963c-11fd60bf6f63","block_type":"box","text":"Operational and Technology Risks.","page_number":106,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"04ac9c37-bc08-418b-bb75-3a299a57875d","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":106,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"97a740f3-6bf2-4457-8266-cf3ad9b82197","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":106,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"5763b9bc-01e7-4f62-a0b3-c48f0fdff3ac","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":106,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"c49b014b-5ee7-41dc-9ba1-48877e0e4eba","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":106,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"8202d4e9-cca3-40f1-a4fe-3292c50a4f65","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"7a87fd37-6468-43f1-a524-8ab284ab5840","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":106,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"a7efc115-1b79-4afe-933e-06204a47d0e6","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":106,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"ec553050-2274-45b4-a538-d18ff2f83c3f","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":106,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"24e2c04c-ec7e-44d0-bedb-5727bc1c54fd","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":106,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"49192f69-74f9-4b44-8f82-48533cec8947","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":106,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"10f12e95-5117-429a-9cd0-5ffc83671a48","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":106,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"05b198c4-4c3e-43b0-83ec-e1e650241225","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":106,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"f6983b24-1e7c-454d-9aa9-b09bab0331f3","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":106,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"7b422296-0fed-48fe-abf0-0790f60bda1d","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":106,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"4282016a-4487-404a-8f9b-ff1a4ceecec7","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":106,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"7b7367d2-e2a0-4a8b-8bec-c014f67af1a0","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":106,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"5f3661db-d0dc-4e7d-9ffa-0fb8b7562928","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":106,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"1a1c5e2b-8c84-4257-9da3-642c65f4de80","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":106,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"b8ff6738-f904-44dd-af51-183124de0a1d","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":106,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"893559bf-11a9-4dd7-aa7b-28606d4cba1c","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":106,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"ee75b03d-cbfb-4cf5-8ccf-0b665a7cae9a","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":106,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"562f8296-9a87-44e3-996a-68ae1b4d41ab","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":106,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"0c99fcff-2310-440b-b945-1b97ebb13dc1","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":106,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"3468f6b6-f129-4e2d-9fdd-4b899fafbffd","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":106,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"062b82a4-34f6-44a0-a606-3519f04e36cb","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":106,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"36234be9-224a-427c-a576-6ed2b87ad48d","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":106,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"b96c8591-996d-44e9-ae55-83b3cf6c47ff","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":106,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"e9611def-81ef-4a2a-9afe-6d14bac00651","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":106,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"0605202d-19c7-445f-9bed-aff9dad71198","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":106,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"181a7be9-6f50-46de-905a-436f96247368","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":106,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"ee1b1f58-04c6-46c1-85fc-994d4dd8f24f","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":106,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"a1fa3202-356f-43a4-b7df-19d90d58be36","block_type":"box","text":"infrastructure assets.","page_number":106,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"60fac65f-988e-436e-8e41-cbc616900ba3","block_type":"box","text":"II-63","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f0556a66-e2fb-4013-9248-8b0802947d43","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1df8ac8-efd6-4106-b00e-6a91a3d1c710","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":107,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"3130bbce-5ae8-421e-b526-c648357d55b7","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":107,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"eb59b71b-7f61-437c-8e27-b5a8f51e17bb","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":107,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"839e15f8-c175-4144-9b31-6d371edeba57","block_type":"box","text":"or services.","page_number":107,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"792fe874-b927-4e7d-a8d0-5cea18137c74","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":107,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"1495de6a-33ec-4944-bca1-b594ddafb1eb","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":107,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"eedfe2ac-a2a4-4efa-bbd8-84ecbd6e0137","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":107,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"9d69e179-94fb-4b21-b595-6ca4badd0b7d","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":107,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"d39f1b0c-e40d-4b53-a8b0-f24ddeb8c201","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":107,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"2004f798-53cf-4c72-bfaf-9e9490011e3b","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":107,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"2d937c96-ea3c-47be-b1c6-b48ad5049a91","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":107,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"4d8d4378-7c55-4983-a9cb-fb05b3f8a4fc","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":107,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"940c32b0-6297-47f7-9e70-3a66c788f658","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":107,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"bcd21309-7f21-4f5a-a9c0-9deb81d7e9e1","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":107,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"df5cf07d-1e87-47e6-85a1-f7fd9204f6a6","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":107,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"bf48460c-2dc5-483a-a343-d4302ffd0cd6","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":107,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"576e4e3d-fd36-4896-8f3b-c5699701c719","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":107,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"7c7d70d5-eb23-4e97-ac35-376945eb751c","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":107,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"acec1acc-ef77-4bd2-96d1-b4ea990bc835","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":107,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"12c202fa-a32c-42d4-adea-5e16906295ea","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":107,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"ab514460-465a-422f-b7bb-98dce408df5f","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":107,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"f3440496-5fe9-44b1-8c5f-9441429fce5b","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":107,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"2b82167c-6859-423f-962b-9c1f4e395fe3","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":107,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"dcfe05e5-8660-4b5c-959b-5c2ffbdb8593","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":107,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"28be5316-4526-4bf0-91b2-20966369fbdc","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":107,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"cb760f39-e752-4c62-8961-5e9470beb11b","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":107,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"6cca6215-6e56-4f6f-bdb2-9e09e6a8c38b","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":107,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"732a0c7d-2c25-433d-b614-baecbb67e987","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":107,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"b028c327-a719-42b6-91e6-0151461f025e","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":107,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"cefe506d-9957-4864-821a-9cf08f6af6b0","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":107,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"4895909e-2d0a-4d07-809f-052aaca4e2ae","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":107,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"027470a0-e8c8-4220-ae14-119437b3f489","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":107,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"a393325f-2950-4643-ada3-6f0ab87b01a6","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":107,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"8c4e51d4-565d-4678-b8a6-b886ee615451","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":107,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"6d41e8cd-a558-4b0d-9490-b1f4926aa5d7","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":107,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"c955ed21-ef06-4a49-83a1-30ee343ec5e9","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":107,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"107a968c-3035-4dca-8024-99d181ff4a0c","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":107,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"57b9a8ad-4485-4294-84ee-58db396035ad","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":107,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"80f81be1-f48a-48b4-990b-76b6efc0855d","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":107,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"d1e3607c-bf23-4256-9e47-451d4acdbbe4","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":107,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"bc97815f-0562-4814-b434-485b80bd62ad","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":107,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"58158409-0de0-4e3b-b2d8-0ee36a82c846","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":107,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"3e23793f-3651-4f1c-bc29-af083fab6516","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":107,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"1dec50f0-99dc-4648-9bc5-49f8d90b2b6d","block_type":"box","text":"resources to monitor and implement required changes.","page_number":107,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"591af8ad-b56a-4793-9009-cf443987c8b6","block_type":"box","text":"Participation Notes.","page_number":107,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"5600c916-9786-4e2e-a5c3-8e2a7f7b220e","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":107,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"c24aa3c4-862d-4eab-bcfe-38c246c50474","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":107,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"b4434839-53bb-4eab-a8a4-07351198d09d","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":107,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"059e1c64-77e6-4016-a01a-89a6d4855ff2","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":107,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"adf8e851-80ed-49ae-b99d-9d4ace32a791","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":107,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"5a500371-e82d-4a70-9b92-1558ad91425b","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":107,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"748639bd-1114-436e-97af-8558705c0978","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":107,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"e1ea27d9-f180-4a67-88be-3a0123d59481","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":107,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"f7923643-d0f2-4e56-8c7a-cac1b08617ec","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":107,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"16bb5713-1cc7-4866-9bb3-1627dc4c5489","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":107,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"fe73f15c-0f15-48ba-a3e7-618531cc0ff0","block_type":"box","text":"II-64","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c5b9f311-e312-4c4e-8845-7d556a7d4854","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b13e678d-493c-4e62-8014-669a6c9fd81f","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":108,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"cd34770a-9e2d-4586-b2f6-82d1742de6f0","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":108,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f645f155-dd53-4089-9d82-f2a73fa44b84","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":108,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"a0f1d9cc-4d7e-4131-bea6-51e5e8f3ad43","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":108,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"0aae9f24-22d1-414a-8030-bfd3aa036534","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":108,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"4fdb81b4-7311-4f6c-ab1e-72a026966179","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":108,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"9543c2f9-7318-4e43-9b83-8530d583411a","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":108,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"4bcca0eb-b5a6-4123-8536-d23e3afd59ce","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":108,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"4d6a5897-1534-405d-a4cd-21121b0ece0f","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":108,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"c308e526-0bc0-474f-af3c-1daa956991c4","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":108,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"3fcde8da-f31c-4fcb-b11e-69db2756fddb","block_type":"box","text":"Portfolio Turnover Rates.","page_number":108,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"6498b116-a0fb-499b-a51c-56a63ab810af","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":108,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"32d8e972-ca8f-4a26-8442-bdd417640ab0","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":108,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"c6eddcad-afa7-4883-b7c1-36298c054ad8","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":108,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"5ce7c9a2-d68a-4606-b17f-3fbb3034eaee","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":108,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"65c2a432-54f5-4542-ba5f-926a34a1313d","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":108,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"2fe1fa3e-87ca-413e-a509-5b3c1f528164","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":108,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"2cb73076-3007-49bb-9eda-2de3c92bf20d","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":108,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"04183e3f-7419-438f-8cd3-016ca7b25cb3","block_type":"box","text":"i.e.","page_number":108,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"9b89dbea-bd77-4d42-8297-3b3745124315","block_type":"box","text":", 100% or more) may result in","page_number":108,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"607acb4b-bb33-490c-86c5-d77909fdfe50","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":108,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"398033ea-0c82-46ec-8604-76baa8b0900f","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":108,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"ab70e7c0-8fa4-4d43-8c64-e97ba85dab80","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":108,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"4bb9ca98-e594-457f-9511-2d0077bb4706","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":108,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"6ff44c68-cad9-484d-aa4b-532e4bf81ca7","block_type":"box","text":"Preferred Stock.","page_number":108,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"a43267ca-c54c-49ac-b83a-4d917f9d1b62","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":108,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"b949dfa2-c5c4-4c86-8ba9-4740f0a88023","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":108,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"5ba45d92-709c-4967-81c2-46b09d4da5a7","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":108,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"a0c2a40e-5a11-4112-86c0-c06fecea38f4","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":108,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"8c1da466-0e95-4c73-a8ef-1ab33321af6e","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":108,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"c441e2b2-6b19-446a-a718-94ef15cec2f2","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":108,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"29fa7f32-62d2-465a-be5d-b76e989a8d50","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":108,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"440d7601-bd4a-49ee-b243-fd3ddce5c135","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":108,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"14c458d1-4f93-460d-985d-8f9a585d35cd","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":108,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"70ed0c20-73cc-4906-8812-62b0e0d24f0d","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":108,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"f484a8d1-7ac6-415d-aea5-dbaf07320010","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":108,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"10a3e1f6-4340-4026-a6b0-3a4c989a5fa6","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":108,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"bbafb7be-a56f-4350-acbc-8d6d41cf5f4e","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":108,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"09ea6c4f-7366-4ceb-98d5-37d4de38f5ae","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":108,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"51465be8-c113-43d0-b3d9-41d200ca16ac","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":108,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"230ba5ea-0687-46a5-9f3a-a97958460078","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":108,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"371a51ed-5ea5-4dc8-a7d9-a9d7cfdbac67","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":108,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"1f7cfac3-f9b1-489e-9eec-defd428c36c9","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":108,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"72f8faa5-4ef0-47ac-9c2d-4f8308d86c36","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":108,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"1aade06c-ebdc-4636-94e1-c5ac5e517132","block_type":"box","text":"Trust Preferred Securities.","page_number":108,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"0c820316-c473-4749-8f83-8f468610758d","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":108,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"e1ddfb9e-e9c2-458b-87b1-c1d92a1202a7","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":108,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"a13cc678-33fa-4023-aca2-3b037db675f2","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":108,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"d89186ed-e871-4d1f-bd13-c5ca08cf5c2d","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":108,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"a49e7f26-b075-405f-a0e0-b8adc7582b67","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":108,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"8c06ed9c-8573-4483-a395-91a7f4459ec1","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":108,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"916c23e5-cc55-4a47-9160-e6fb9c9c6e71","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":108,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"5b934137-b223-4f90-a8f9-3bf3c3677003","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":108,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"ef354ef7-a75f-4e96-a861-a594003e0cff","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":108,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"80aacc2f-2939-41b1-a989-02fd226b614d","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":108,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"f5800c25-aa3c-4238-b618-a4a640e65f5b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":108,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"2b0c4322-773b-4edd-be39-e51aa50629cc","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":108,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"2ce6a4e7-a82e-4bed-8a77-d6b7b1604b7c","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":108,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"b0c14e59-0fe7-4e56-95aa-a70d07c49bfd","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":108,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"9471eb0d-164c-4192-aeb4-05d775088a50","block_type":"box","text":"®","page_number":108,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"09b83be7-9cf9-4aa1-932c-0a49ba50e4e4","block_type":"box","text":"”); monthly","page_number":108,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"c789ce84-3110-4d66-95d3-075208e2a380","block_type":"box","text":"income preferred securities (“MIPS","page_number":108,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"7723dc54-971b-4faf-bf33-a8b56967ffef","block_type":"box","text":"®","page_number":108,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"1bc7a832-ea3f-4a1d-a2dc-73132fc0706a","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":108,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"696b0313-7702-48e6-a524-f5262c1f9fb2","block_type":"box","text":"®","page_number":108,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"97fd3aa3-0999-442b-91fc-c952b78eddaf","block_type":"box","text":"” ); quar terly income debt securities","page_number":108,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"1eef180d-37a4-4cbc-b82d-630704bca453","block_type":"box","text":"II-65","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bdcd571c-2ad3-46ec-8618-e419588b548e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49439d13-ee6c-4af1-8a2a-c4c3a5f9aa41","block_type":"box","text":"(“QUIDS","page_number":109,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"91e0f817-f291-4691-9bde-fc4fe8a9bcf6","block_type":"box","text":"®","page_number":109,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"2f16b836-af55-4171-97f6-ca48139ba33c","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":109,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"d8ea765a-3957-4afb-90e1-532b472951d5","block_type":"box","text":"SM","page_number":109,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"9c2f0576-1aa5-4887-a22e-dd30cdf6b3d5","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":109,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"076420fe-36f1-4471-affa-162b85d53270","block_type":"box","text":"®","page_number":109,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"ddaef771-4d00-45e5-96f9-dd7226ee358e","block_type":"box","text":"”); public income","page_number":109,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"3bb76952-5d85-4161-963c-d597e26f9b71","block_type":"box","text":"notes (“PINES","page_number":109,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"31c1a267-9420-4f32-9483-dabefd3cd050","block_type":"box","text":"®","page_number":109,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"85b508b4-50d6-4e39-8bb7-30b6cabd86d2","block_type":"box","text":"”); and other trust preferred securities.","page_number":109,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"45d17a9d-d00c-4131-8eca-50f15042ffa9","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":109,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"da5d3587-aa93-47f2-8fa9-29515c6d103c","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":109,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"3b4ec8b1-f1d0-4199-8af3-71e1854c461b","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":109,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"44e56f94-1031-4619-89a9-7517c1e8e5e8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":109,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"43fc8e29-bee3-4113-8cd9-2b8603f2c9f6","block_type":"box","text":"regard to whether all payments have been paid.","page_number":109,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"71ab436b-003e-4008-999e-32ec53e7a4a9","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":109,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"e10aac9a-b4dc-4880-bf09-644e02c1ac56","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":109,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"a16f76e5-6d12-4be3-89e5-9c03d0a0a1c7","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":109,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"21d92500-936b-4b7f-99bc-90a1e04953df","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":109,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"09633c47-ff0b-429b-9963-b1226d6aa6ad","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":109,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"655d4a7c-851f-438c-9d1d-4bea9852a5fd","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":109,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"11130a3d-471b-44b6-9871-99ad623c2251","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":109,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"c19f38ea-fa41-4dd0-bfd4-c1b8c2920a7d","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":109,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"aec497df-afaa-440d-930d-324a0cbb75bb","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":109,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"da4e65dc-d5cd-4047-b8fc-585b0ec3b46e","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"ff6d4cc8-d11f-4f45-8052-168f3dabd2a6","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":109,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"24dff6f6-a81a-46b1-bf89-6c2468bedf0e","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":109,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"43688ab5-d2c1-4d63-9d30-51f0991c22bd","block_type":"box","text":"debt securities.","page_number":109,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"6dc23c8e-9227-4c3c-a5e3-26303f958329","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":109,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"09e7b0df-cd30-4891-acd8-6ab38e5f588d","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":109,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"e88e88ed-ac08-4a0e-88f5-b7da899b5c53","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":109,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"1289d2ed-1efa-4575-81be-c26decd17c8a","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":109,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"0c7c807a-b0cd-4aef-aa22-25cdf271b85c","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":109,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"6e47589f-26cc-4a13-ad5a-88562b3bdf8a","block_type":"box","text":"i.e.","page_number":109,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"9f05cc20-1cd4-4acb-901e-5e289564500c","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":109,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"802eb05a-5da7-459a-8c12-ce1187f56d62","block_type":"box","text":"buildings.","page_number":109,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"333921b1-8a25-4f48-b83d-2555e3b7dbb5","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":109,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"7f309844-18a9-4147-95e0-823bdec88ebf","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":109,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"dffddb5a-60e1-46ed-8cef-ae20e4ea4207","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"4ab2b8d1-190b-439f-943e-30c62950ccc0","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":109,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"d446a336-ba43-4816-8313-3d87297fc050","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":109,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"ec27b9cc-530e-4e29-af29-6937d6ab4f7a","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":109,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"3bfb4ab7-9780-4cd9-8f25-bfda50be2e38","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":109,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"4fa42542-042a-4d83-bf20-7f9d7bb985df","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":109,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"93d5ebad-1bc1-4d14-9bb8-79a4709b5355","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":109,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"f4d85870-1335-4bb8-a9f8-0cf284bea558","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":109,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"fc17a815-996e-435f-b7f1-481c77a12575","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":109,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"bacfee52-16b7-479a-a6dd-160323bbe675","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":109,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"e2c6e869-8423-4bcd-9d23-931502e5808b","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":109,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"cf60b6d4-8d8f-4697-8556-654408819906","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":109,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"689eaf14-6308-42cb-87e6-b3a36ff64c0e","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":109,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"1e78e08c-0c16-471e-ad11-c82229b909d2","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":109,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"9ac7ca00-0dfc-4f27-8c04-42847b2d1f85","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":109,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"29e3eb3f-cb33-4299-b7ce-cb1b53609d03","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":109,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"ca5c0f28-c2f6-4f55-a4b2-0d9c48b28148","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":109,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"be82874e-7a74-46ea-8c94-c678a355d6ae","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":109,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"3fd85da6-568d-46cb-9c59-dbad84c5cca9","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":109,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"e9a3b1b6-739d-4efe-9c61-34560b292b8b","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":109,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"3b43f79f-91ca-4461-b02a-013594c6356d","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":109,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"a6ad96ef-2755-44e1-8789-8684408475fb","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":109,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"6eb84bb1-3a1f-40e4-a630-bdadd634cf37","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":109,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"ebb0aebf-c172-4ae8-8bcc-e3eda6c053de","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":109,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"5b486eeb-9393-4ef6-bc3d-1e993dfc3032","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":109,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"66730c99-fb25-40ee-b3d4-154ae47acd16","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":109,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"3bc430a7-7263-4c99-8971-c5cdb2d92df8","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":109,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"a386fb8c-b89c-4c20-8880-ed5755bc5349","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":109,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"1bf474d8-8402-48af-8025-785153fdb736","block_type":"box","text":"II-66","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"841e363a-1dff-4ed0-8f9f-dd00b8d8c713","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07ecf854-92fa-41ac-b596-efc307da3158","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":110,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"dc0c3efd-2a90-4f99-a61e-427c77994aeb","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":110,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e4ec0b73-a092-40ee-85fb-b657a7f8007e","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":110,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"3c269593-d0e6-471d-b0ab-66590c52d096","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":110,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"0e4e8eb4-e8ef-4d8a-af02-eb39485681d6","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":110,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"021ec32e-0e8b-4bfa-82c9-40d79685b620","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":110,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"938b0e8a-11ea-42dd-aa55-160d20f37a68","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":110,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"07d1f2fc-77d6-4c53-b3e0-0bb5fa1ae805","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":110,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"c6ac5649-a52d-4e36-87dd-12a17bbb6d79","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":110,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"1b7d95c6-7a04-4694-842b-70c33979dcdb","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":110,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"85c17b03-ee2a-4503-9a7f-41b1700ef2b9","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":110,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"bc6b8eb2-f195-40b7-9040-b2bcfdea1c2c","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":110,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"8562a04b-2942-4d52-addb-be35115457a9","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":110,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"7dc27f9c-7ce1-43fe-919f-12e6b83f24c3","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":110,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"2f9c6260-d35e-4ea7-b747-b6c8d493e578","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":110,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"2a054fa3-18ae-4130-b21c-be70331809e5","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":110,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"814af30b-4230-4279-b928-42d2af190ca5","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":110,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"fbbc3a0c-4fdf-43e6-b63e-77e331525a32","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":110,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"ba22fdf5-c339-4a25-89cf-a8f81044b1fe","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":110,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"f31937f0-86f2-47f6-afbc-4e49764cc71e","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":110,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"dc1fd01f-c163-4143-874c-09c1e115d5dc","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":110,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"7a2f798b-43e6-49b0-9613-326a4f21652f","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":110,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"bd5e95ef-a343-4c61-850e-141df6cfa8ed","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":110,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"4d3e9d4f-6911-4958-96e1-cf6a5735ccbc","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":110,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"84803abd-3276-48ff-a1b9-36fd770f1338","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":110,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"93aa7d35-ed70-48f5-b153-d5509972d541","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":110,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"9aebb218-ddad-4722-91f6-3709afbf793b","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":110,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"61d64f6b-1375-4a6e-8ca4-b856131b39ec","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":110,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"9d646337-036d-458b-b00e-3ca2a5ab09d8","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":110,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"9d21e795-6aec-44a8-ac46-7a228036b3de","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":110,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"858d27f0-af2a-4312-a008-5aee4852d254","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":110,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"0c2675a5-b968-47f1-a00c-e895e7f8c636","block_type":"box","text":"conditions.","page_number":110,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"f4f5c609-c445-4580-b8b0-52c3bf6d7f48","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":110,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"c275d0ec-169c-4131-82fe-704472781c42","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":110,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"59010c34-8bef-4f64-94c7-f26804cd22a1","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":110,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"72ff8e90-c1aa-4d7d-a1b0-01a52dc97daf","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":110,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"30be9b18-a18b-45c3-84cd-1b460ed36ac3","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":110,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"39680794-f7d4-4cef-a140-08c8389e67be","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":110,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"ee4bd062-980c-4837-81df-4dd7a88d75c6","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":110,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"9f3024b1-d5a3-4fe4-a165-3d6b6731e1b1","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":110,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"22a7d7b2-cde0-4028-9917-226d5c4d1158","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":110,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"844fa026-9985-423b-be60-3cb9c416fd84","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":110,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"df59a589-e41d-4b36-9f70-1547acc3d82f","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":110,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"3e959b8d-deba-494c-a0b9-0cfb408e60d0","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":110,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"682067c0-2ffd-4a81-901d-2802ca549742","block_type":"box","text":"affected by such events.","page_number":110,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"52062829-3b47-4ef7-badb-3b75da57cb26","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":110,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"263b04a4-00bb-4cb0-ad31-3cec3a59ee41","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":110,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"68218534-7fcd-46d5-ad62-4688b4a3de2c","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":110,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"6af2d504-cb43-40e5-a07c-64064fc9a7e8","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":110,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"25d39706-0b78-4467-909b-fff9aea66ef3","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":110,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"4783b485-1d3c-48c8-ba02-f503a4031457","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":110,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"ae302ce2-9b0d-4c76-b656-3ae7737817b9","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":110,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"83f74dfe-8f90-4782-bada-8cba25e543f4","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":110,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"4b8655ed-82ea-4d90-a994-dd56ded5af09","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":110,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"aff0a1c0-08df-470f-b2ff-269611912e8f","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":110,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"78795992-5402-46ce-bdd7-1395a9bc588c","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":110,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"ebe85f0c-c7a0-4117-9279-e814cf29b42e","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":110,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"b93cc7de-ecbd-41bf-9b76-db51421a75d0","block_type":"box","text":"II-67","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1f497e10-0e59-4da5-bdb3-59df5853e98a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82a184e7-beb5-44bd-8c42-8966e363a658","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":111,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"5f4dfc28-e397-4b9f-9d16-7b2468bebfb4","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":111,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"da261f5f-a648-4b7b-b6ec-5f025c841160","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":111,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"ac56a90e-da51-4cf6-8637-9477d9b242d9","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":111,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"23f991ae-0329-46b5-be30-d485bda54c2c","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":111,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"310128d7-bbea-4cb7-a3b2-863bad04c68f","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":111,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"4a546e7b-843f-4cd2-914c-0222a915d32c","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":111,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"323d6bc3-970a-47fd-ab81-9eef728bea58","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":111,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"7498ebcc-e939-4065-b5f2-98b6d7d39c63","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":111,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"73d95ed3-b030-4b4e-a3ec-d4f29632a23b","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":111,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"0e232cd7-0c47-4348-b09c-6936a31fd97a","block_type":"box","text":"investments.","page_number":111,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"bfae5267-1266-4d0a-8bc1-febac0d1ebad","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":111,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"e6f198ac-d38c-4ed3-a3ba-4142ad070c5e","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":111,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"58d21af4-c5bf-4808-80ff-f0fca89738bc","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":111,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"2f4e7bdb-25ad-4364-b52f-772b38c354cf","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":111,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d346b1de-1a4c-4d1e-a718-7b6c4dd38329","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":111,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"820f0f8f-3bc7-4a1d-a81d-c640cdd8edea","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":111,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"647574b0-d41f-4181-8d22-d807622e915e","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":111,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"ef535558-a939-4bd7-b28e-70cb9d3ae502","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":111,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"0730cc20-8151-4ca4-99b0-fe1a34af18dd","block_type":"box","text":"Legal and Regulatory Risks.","page_number":111,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"7b8991ab-64ce-4c70-81a4-79b2fb35267e","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":111,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"dbdfc184-c5db-4310-8dd6-427fb8675cf9","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":111,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"77b80818-9888-4bde-ad50-6b910cc135f2","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":111,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"0d365388-9134-4412-a3fb-e696c21245af","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":111,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"d85f3aa3-9dc7-4375-ae69-d0930e5957d2","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":111,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"c69fe143-e9ef-4af3-8854-d665b4eefe8c","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":111,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"f19058d0-e2fd-4be0-a4ea-28fa38563dfa","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":111,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"3db38c4b-8fda-4a03-ba37-a1ef8ce24992","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":111,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"35855cdd-927f-4980-84dd-081cbcdda39f","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":111,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"04b07757-af71-43bc-ae10-6767cf1faaa6","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":111,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"c52311b7-7c62-441c-a9df-b9f70716bd46","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":111,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"08c1cf5f-0fb1-4e32-872d-efadb234e9de","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":111,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"18bc560b-02c6-4c80-b761-862e5a774f80","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":111,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"66161815-184e-4a18-9601-42d2d06ecc42","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":111,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"ee9043a1-0c64-473b-b64d-adf69641f3e7","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":111,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"5ff7c862-f938-4c36-9554-b0a8833455c3","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":111,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"6f8c00a0-94a3-4829-acd1-b0bd888459a8","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":111,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"c3b112bf-74bf-42b9-840b-1eccb4a1eca1","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":111,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"a6e4c6af-7e55-4f36-9c15-6710ba159746","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":111,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"8c58b50e-4764-4b1d-a82c-876b03358e6e","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":111,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"9bd3a7ee-1a30-4db8-b74d-f3d2f2e31e86","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":111,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"9bc7e15b-a0a3-4086-82cd-c140d15962b8","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":111,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"8d6d420a-cbf2-4b03-a19d-abb0a80356ff","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":111,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"7eed71cb-dfce-4f25-ad54-bd299ec47774","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":111,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"f307a02e-a4a0-47b2-8470-7c72db49efd4","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":111,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"bbd34f49-b985-4b73-90bd-edb74e7e4a36","block_type":"box","text":"Geographic Risks","page_number":111,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"0c888274-c834-47b6-a5c7-e2d7775115f6","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":111,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"ebc734c3-af8b-4931-a7ed-b4ea48f3e8c7","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":111,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"8d55fe2b-bba1-41e1-b010-154651168562","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":111,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"2052b319-b851-45af-b133-939efe202df4","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":111,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"912151ce-59e3-4681-97d6-e992f55a71fb","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":111,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"f81f6532-d554-41e9-9659-058c4db5eec3","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":111,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"af0dc8c7-ff04-41a8-8f40-e8b9af21c994","block_type":"box","text":"Fund.","page_number":111,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"e9d85b34-e876-4e7a-baec-9f58d9154dda","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":111,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"729e7f40-7687-49be-a8d7-7f0441de5cb6","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":111,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"71c2856e-e4b3-46e2-9b70-46872dd38464","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":111,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"c2424647-2a46-4421-a430-e52f5458747d","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":111,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"75a979f2-84d7-4d35-a5df-920455b5d1ed","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":111,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"2fe2e6db-6cc1-4b92-af43-7b83dd55c51d","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":111,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d2fe1ec8-354e-49e4-94b6-91bd458185b5","block_type":"box","text":"II-68","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"523dda76-20fd-4b75-b572-265d5d5b167d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed4e4fb8-2194-4f81-8f71-3b1939df0350","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":112,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9528e526-bd9a-49f9-be8b-1b209ab9411a","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":112,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"93273c24-6a9b-4a7d-9fb8-eef923f121b2","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":112,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"a9be3e45-d8b4-4040-9f73-e174e52781bc","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":112,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"8b6ac100-6160-414c-b739-bb4244bde0ac","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":112,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"ff49fb81-f68a-4817-b4d4-ca049c65d5a7","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":112,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"480a7cc5-06d3-47ac-be0e-e92dac6d5bee","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":112,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"2fe8cfca-1111-401a-8936-e9aa0e75f8b1","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":112,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"ad182163-2e78-4f57-973f-81c5a1eaeb93","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":112,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"143ca61e-ac5e-4fba-8017-058ac5033f74","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":112,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"83cdb2cf-52d4-4d59-8740-b7432a21aee6","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":112,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"dae5675a-f261-4aa2-bc7b-1935ffeb3f98","block_type":"box","text":"e.g.","page_number":112,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"653535e9-8500-47bd-a5bb-34e9677b5b77","block_type":"box","text":", SOFR for","page_number":112,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"d9cfe4e4-1c5c-42c7-9fbf-bdcfea74874b","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":112,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"da114a3b-f6ef-4c19-8496-c08555d76998","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":112,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"31741b9c-7ca4-48d5-b9dd-2846f794ecd2","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":112,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"98909f4b-8abf-4deb-8b78-764e25e38db7","block_type":"box","text":"determined.","page_number":112,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"a412cad6-ae03-41ff-84a0-060275903ad0","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":112,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"2d464576-0143-4f57-9fa5-c366a6d1d75d","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":112,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"de709133-4b5e-4024-b7ce-7f93624eeaeb","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":112,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"62c6944e-4ff0-49bc-bc44-79996bb923a5","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":112,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"d6244c82-e2cc-4bc8-ad5a-5061ea201d25","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":112,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"5f71b07f-50ff-42d4-9ef8-033d1f29a8ac","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":112,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"9dd33793-654f-4811-826c-cd884255fc6e","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":112,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"d946a756-06ad-45b6-b253-33547a837312","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":112,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"412eb12f-d4c4-4c3d-8b66-95d8f56f275d","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":112,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"e06a387c-3d67-443c-aa06-20f93ab45ab9","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":112,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"79181bdd-e901-4731-bccf-e85c39d80682","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":112,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"dba7185c-0aff-40cb-afe0-ce390f47fbb9","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":112,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"9eea8ce7-cff1-4b3f-b264-c36eff2ae4f7","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":112,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"94dac350-66f0-45b9-8ac0-89f9a0fa5c4c","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":112,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"a652844a-7eb1-4d41-8c8d-c5d8a6ba7a39","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":112,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"1016cd8a-844f-4231-b526-7bd8461197c1","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":112,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"385f19f7-1dc5-4bc5-884c-c9465fd5bf90","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":112,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"058b7e78-070e-4bf5-82fe-58918e1253a9","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":112,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"9138c020-1621-4b0e-9f24-bd53abfdb1f5","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":112,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"f184f672-361c-4e19-9162-62b295583a05","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":112,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"b8cb9acf-f3d7-4bd2-9dfa-bcee3da5558a","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":112,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"102830e0-6abc-4bbc-991e-b67e61be1280","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":112,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"955ede87-5927-4cd7-91f1-b59bc4fe6e44","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":112,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"979735a0-4116-489a-be56-0f3dbbe0b28d","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":112,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"87f63e83-248b-4148-8a7f-00b020126777","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":112,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"377602b2-4db8-47c6-9bcb-7ace2959c658","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":112,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"10cf903a-f239-4644-8bb7-8f43987b9341","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":112,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"d6603c39-1499-431b-85fc-44e89dccb452","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":112,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"be7ef71e-dcb9-4411-9ce5-1067a92d0847","block_type":"box","text":"consequences which cannot be predicted.","page_number":112,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"91da96a2-76fa-4842-899d-7ebf5fda6e14","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":112,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"fa02a4c9-d476-4ea3-a218-1dbb3d99b8d7","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":112,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"c2147995-49be-40b5-98e2-599142b1199b","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":112,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"5e784885-0634-4f93-b929-35ac0c88ac95","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":112,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"c6fe3bcb-264a-40e8-999b-772488cf5205","block_type":"box","text":"term of the agreement.","page_number":112,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"98946772-250a-46a1-a795-560b3cc5ea3b","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":112,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"7243fd8f-9e65-42cd-8b47-27f4dde5ed5a","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":112,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"818e33b6-5044-4998-9d76-347aa86da1e7","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":112,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"6cdc8204-900f-47d8-82bf-980ae00f4ce5","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":112,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"7c860571-0d5d-48ce-80ca-74f91230ad80","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":112,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"d8a06ecd-40c5-4080-a131-948c9f36efc6","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":112,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"c5f13bc7-0546-42b5-9142-499265ade3a4","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":112,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"98952ed0-9b3a-4d06-8ab1-e539216dda00","block_type":"box","text":"II-69","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3783230c-c5b6-4767-8b16-c837d743ec8d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51fa8de0-d3a5-4881-b044-011066d6818c","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":113,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"f2a77442-9d82-4969-b176-08868e6a14f7","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":113,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"9ce24ec2-5144-4e66-be8f-e0419ff61ec3","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":113,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"d400a9cd-b984-42c7-aedd-af2a54ca623d","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":113,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"f6efcda3-2c6e-4fe2-9c24-7ddbdd4f8fcb","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":113,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"3fcecedc-428c-44d6-8005-f1df1bf0a75b","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":113,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"1786f17e-7949-4021-adc7-f78d3ab7b69c","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":113,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"72295b12-9fed-43fa-9161-60ef5426f099","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":113,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"857841fb-74f2-4139-8789-cc0f3f1fb6e9","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":113,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"978e9848-2ce9-45fd-9ff9-7789a7e8bb29","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":113,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"255f7a96-fb4b-452a-93fc-1cef6004dc53","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":113,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"12ec6d2b-e93c-46d5-b5aa-b04a3c5a085d","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":113,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"f54b2dda-746b-45a6-838d-2052b185fef6","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":113,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"a3e98a15-8606-45d6-a7b9-20ffa61407ee","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":113,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"762a27b2-df84-41b8-9ec7-743d4a4ed36b","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":113,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"c3bee104-172e-4612-9c29-8210ab0dcf08","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":113,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d77dc462-ed35-4745-afc5-840fd2b59f1c","block_type":"box","text":"or by another authorized securities depository.","page_number":113,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"a605b622-2b17-4765-acbc-c65e76e06ef5","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":113,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e7922fae-90a8-4669-981d-7f891a7cf6fe","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":113,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"84723504-4630-49e4-9037-1d13b6374230","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":113,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"4e32e76a-e60e-4ade-8b10-db017071ff51","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":113,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"d9c7bfa1-4cbb-4380-8dec-79264e02121f","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":113,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"651be44a-61fb-4189-bed9-82842f3bfb6f","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":113,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"d99534b5-77cc-4f2e-96ab-298524443838","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":113,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"51caa643-d9a7-41bf-a236-af63824ea439","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":113,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"caadcada-60b1-42da-8de3-d77d71a27c83","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":113,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"d4c2c9b3-b1c9-4adc-941d-e35afa4188ce","block_type":"box","text":"the repurchase price.","page_number":113,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"0075dbcf-3f57-49e0-89f0-2320ae1abe45","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":113,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"a59aa39f-95e1-4892-b999-b8c24f960fc0","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":113,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"5f93a9a8-b4e5-422a-8b74-13985dea142b","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":113,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"ee4abca3-d023-4d91-bf2d-0064e88bd4d1","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":113,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"db63e860-f9e3-402d-8dd6-333617b9cf0a","block_type":"box","text":"strategies without the repurchase obligation.","page_number":113,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"2532819f-c951-46d9-9591-83421bea1979","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":113,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"b564670c-d3e9-4200-9cad-39e3e60bc471","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":113,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"94ebff64-2d1d-48ef-ba66-ffff599206cc","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":113,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"b088ace9-9666-4e02-986f-32c0471e806c","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":113,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"491ae904-5495-41e3-8fc8-10b51a50aca8","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":113,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"e72ab8a3-e0b2-4e8b-976a-c458fc89fb8f","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":113,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"74e35a87-56cf-48ac-b4a6-03a6dcffebce","block_type":"box","text":"i.e.","page_number":113,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"e5639ebd-1e93-4c13-bddc-0a5e88e17cac","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":113,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"91636ec6-3e39-49b9-8768-17b31eda3fa7","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":113,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"7fdfbbb3-3911-4740-b377-a3311277911f","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":113,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"64419ba9-f6b0-403c-a909-96a828d32f8f","block_type":"box","text":"and income involved in the transaction.","page_number":113,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"2d1d83f5-8696-4151-a687-ab3589ceaf93","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":113,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"cec31f4a-853b-4a8d-be79-2875cef3e186","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":113,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"33cacce4-eb85-4aa5-afd9-6576fadef1c0","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":113,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"014fb0d0-4ac1-4109-a81f-f3c2809521db","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":113,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"f36c7d10-b08f-48d9-bf9d-45f90bcfcadd","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":113,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"36694651-6991-4df9-9c73-4dc3173f1f47","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":113,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"fe1c14a0-8df2-4838-94aa-f0897e76208b","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":113,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"b2b80dee-af72-4e45-8567-e53b4a17bf35","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":113,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"b3e75a92-96e9-4ca4-9f1b-e62fc6fdf1d0","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":113,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"fbfb8cb3-5474-4ead-b4a5-1b4167bfee87","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":113,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"c0c08440-f8c0-4d4f-ab79-5da041d8d763","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":113,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"bffd077a-ca51-4bba-bcdb-d68ff5adf32c","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":113,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"dcb3cd47-6406-4f38-a414-f436c24a6ec0","block_type":"box","text":"Restricted Securities.","page_number":113,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"7fc1e721-8935-4a9d-8978-c454aabf995a","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":113,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"e65329b6-56d3-4ffb-87a9-255fa5f570e1","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":113,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"2aaa4722-a03f-4d6d-a452-a58c4243aa12","block_type":"box","text":"II-70","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6c3ac0a-6649-43e0-b29c-9ed4214ca6ea","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"481d2078-f876-4424-a768-1d7514790ca0","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":114,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"70da35fa-69c9-4141-97d4-40431254bdeb","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":114,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"e69e46fb-c83b-454a-b8e1-a9b946019b7b","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":114,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"caef87c5-8a74-4254-aa72-cb2810e36c12","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":114,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"232a9e37-47ca-409e-a4ea-aa7e0881e285","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":114,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"62291b51-bf6b-41a8-9c0a-63a66ad63522","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":114,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"e24046a9-4ff0-48c2-b3e5-e7e2bb3fe685","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":114,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"06838fc6-f478-4d08-939b-d4d655cd6ecc","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":114,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"4b955814-3aa5-4564-bd1f-a445d2279182","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":114,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"43d0723f-2380-4ce0-8090-3630a55ff90d","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":114,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"eaf310d5-d299-4d63-9fb9-48870235bebd","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":114,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"517d8bb1-cfac-44f3-9cad-54486fbf7328","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":114,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"21ff28c0-18d2-4202-ad41-2d8c7b37aa0a","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":114,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"865c51fc-89e0-456b-957c-d17c11dd6cd0","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":114,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"fe3aa198-5769-4c32-8f61-58348c159e39","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":114,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"41b43a3e-bcb1-499f-a09b-5a2a767134cd","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":114,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"8433c291-e76e-440e-8cfd-98add78d74bf","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":114,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"d15e0ab7-2942-4bba-aaae-fe2736523cca","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":114,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"d9a6e2c9-7f95-4edb-ac96-26de87871f2d","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":114,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"bf13b6f7-b6e3-4c11-9c3d-0bfb1b66f92f","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":114,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"81f53f70-9d3c-4891-bd75-e190d4b931c6","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":114,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"dc3ffa92-ed30-40be-87c1-d1cc41c96f61","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"a88e00a2-3df3-458a-9da2-fad81e0ca6d0","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":114,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"c6d759c4-691f-467f-975e-3981012334e2","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":114,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"0bf173b2-32bd-4419-a397-e4099cd61e07","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":114,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"9aea3712-6c63-4ded-a438-edaddb689a6a","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":114,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"a9d553a7-edc1-4ffc-a172-354e318647ac","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":114,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"5170086e-db73-41c4-bc69-8b53ad14130f","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":114,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"43117eb8-4935-4072-935b-d8c680d85ab4","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":114,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"8e8df027-b799-426a-84c5-7c22be8abaed","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":114,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"47a2f55b-ab71-4c89-b106-b89917ea7c2f","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":114,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"b1837f33-e167-4779-b161-6258ec2d1660","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":114,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"9a724b0f-6efd-411a-ac2d-6aaf535c891b","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":114,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"00e4e0a8-75e5-4673-b3d7-8392fd4cad4e","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":114,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"439dafc1-b01b-40ff-8435-654b1cec7965","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":114,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"dc16314a-79c2-4e9e-9518-fdebf2f35963","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":114,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"bf9878a6-ac85-44f5-aa02-007f1fc9e20b","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":114,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"4f4383d8-4fa0-4bf7-945e-76437bf32955","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":114,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"0a94eaaa-e250-425b-b81e-a8cdc6346d43","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":114,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"130deb62-7a8a-4b98-8806-72f527768a30","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":114,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"c968d928-8267-4631-9c5f-3a81d24a8d98","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":114,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"238ed5dc-faee-497a-ae93-0695ac22f825","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":114,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"1ee2f8ed-be54-4ea8-bf5e-7e6f7a40dddf","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":114,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"80e4094a-940b-4366-b925-e51909d1c74b","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":114,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"bc8395b2-8a60-4131-a77e-5f05f600ed82","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":114,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"79f04841-ff52-4ae3-a9aa-88e03ff16539","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":114,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"b76c74c8-3ac0-49ca-aee7-5fd1125de7ce","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":114,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"8a9eed37-1a80-4ac1-9657-a4eb66015750","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":114,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"59d75e36-ada7-4673-bf07-7445c352b8a6","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":114,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"7626bea7-6f75-45bf-b6d0-1c8c4fab1542","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":114,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"42fba7b9-1d9b-4771-8802-5fab0583978a","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":114,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"72b9c4d0-f86c-44b9-b007-c35b9d012719","block_type":"box","text":"especially as that Fund grows in size.","page_number":114,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"b7bf8605-2b62-4017-9cad-a353413ce579","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":114,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"08e54ca1-eb3c-4368-b8bc-4c1386cba579","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":114,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"7b1b87d3-d64d-418b-b5fd-02607a7beb80","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":114,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"b01c1abe-71e0-40b3-a21c-6bd71ddaa6ba","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":114,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"a96a62b8-38de-485a-bafd-659597167255","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":114,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"d0c74e68-5a99-4f0a-bd88-9fd087c284fe","block_type":"box","text":"II-71","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c5655719-dbb8-4e1f-a993-efc124622a25","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4740d25c-87de-4e0b-8233-d8ab04096c5d","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":115,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"8efa1a18-e259-4c43-9bb9-ce475a1d9433","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":115,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"8abba6bb-4b6e-4e8f-bb1d-206550d33faf","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":115,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"7d387eee-b047-4a04-a070-8bc47d445c87","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":115,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"f1a40cab-1899-4327-b9aa-331ec4a4b3d3","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":115,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"f0c5d688-ca7c-4c1e-97b8-009babdbe929","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":115,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"2bca7965-b4cb-4da0-8c03-c016f3b3879b","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":115,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"fac63331-f6df-46c2-9ef1-4a81c2ae3046","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":115,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"198b7344-75b1-46ad-b1d9-8117d22c0a61","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":115,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"5696bda5-7c43-43d2-9dc9-1901eb06f62c","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":115,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"daceae17-f4dc-4dc9-bea2-53e74a3d03d5","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":115,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"f0e43b6c-54b6-4fbd-bfff-989cb19b0ca0","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":115,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"4584ab80-8f65-4f40-8d56-510ace5b0d32","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":115,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"fc277a8d-f18f-4c5d-ad91-dc336f63b7f4","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":115,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"ec272683-f495-4b98-b428-96bb236b0af7","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":115,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"87f7c292-6adf-416c-a5f6-a1dd4ba74322","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":115,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"3d53bf83-dc58-4907-a9c2-f143406731fb","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":115,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"60d807d3-1216-4067-885b-b3506fc4d82d","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":115,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"234364b0-96ea-47ff-b114-b4c2f06e1b98","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":115,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"2373cb12-c991-4269-99e5-86507091fc72","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":115,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"8b8d5792-9d1e-4d99-b13b-18ab816bf79e","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":115,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"557651df-adf4-42de-b6f0-76261e0eaca5","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":115,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"b2b548ed-6e44-423f-9024-b85a85a1521d","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":115,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"21c2cee5-f600-47ab-a400-83fddf729fb3","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":115,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"5a1705f4-8f11-454f-a4c6-d81af337c49b","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":115,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"94d8105b-5844-4e5c-ba25-f6666295e0a6","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":115,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"c6a2e927-1c55-4cb7-9c4d-f6597bae45c2","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":115,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"c8782762-c60b-4c3b-8417-b3416238cbe7","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":115,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"bfeb57e5-6e21-41d2-bb9b-0d82894cfa63","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":115,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"588a6e40-0951-4d59-83c2-804108d2a5e0","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":115,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"ea703f3d-689f-4fd7-ab9b-8d7520871ab3","block_type":"box","text":"similar financing transactions (","page_number":115,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"a1d9d698-b385-42a7-ad29-6a5748177d4d","block_type":"box","text":"e.g.","page_number":115,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"886ee842-f9a5-4576-8616-de42ab2dfff0","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":115,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"36b696ce-2a9a-4b31-af73-8325b0ac2ec5","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":115,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"5c51267b-e78e-4aa9-97e7-f362adda5742","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":115,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"eaffc9ce-f10e-4514-b6ae-a67ac362b5a8","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":115,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"a439fa02-3b7c-4011-a2a4-9549286a8cb6","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":115,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"243b91f4-c485-422e-abd6-67e1a81424e1","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":115,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"897b3eec-a5ac-42d2-ab10-d9ec7d11de6b","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":115,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"8db1754d-96a4-4799-b6f9-fc60d94c80c6","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":115,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"e354465c-5e26-4068-ad4d-7b16d3fcba01","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":115,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"5900a08a-60bc-4f4f-b195-383b8bbe1a8e","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":115,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"92de0c77-0976-4aa1-9bbf-fa3de61e64cb","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":115,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"9693835f-949a-4254-826d-1264d36d2203","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":115,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"0b746ec9-d7a7-4566-8508-c99b1fe2f27c","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":115,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"b0e610c2-e121-4fcb-842f-ee78418fd1b0","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":115,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"703135f7-d83f-4fc3-80c2-96834ed133e0","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":115,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"8a55697b-5231-4ded-b76a-844519730eea","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":115,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"5f1b4d2a-84a5-4546-8c24-c2c758c276fb","block_type":"box","text":"amounts to be received under such agreements.","page_number":115,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"f14dc84b-2184-4165-8e5a-203d5af53c49","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":115,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"b3887184-d990-4b47-ba3c-b04e3ab6711e","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":115,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"a93070dc-eacc-4e49-8f56-c2c6f5e323f8","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":115,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"16f71d16-c7d2-4900-ad8f-ac9b243c5a3d","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":115,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"ea354ab8-1160-4f8b-b505-ff1726010f7f","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":115,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"2b31bb9a-2d1d-4769-b673-69c88dec82f5","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":115,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"770687ab-5a0b-4226-bb25-fa634eed7c3a","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":115,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"31327d95-b969-4f21-8db8-1690cdceefdd","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":115,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"b12a4c1e-f167-4ee8-918f-c8c86af36d5a","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":115,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b64af4c4-438c-4f22-bfda-72eb35828a11","block_type":"box","text":"II-72","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26261985-a1fd-438a-8395-c5d42862f3ea","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4f0acc5-2d8e-4ff4-8f19-fdd979672364","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":116,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"1b8c03d9-174c-44c4-9c4e-87570bb5dd06","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":116,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"da41c007-53bc-45e4-a0c6-068a3a889a37","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":116,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"7ab29c02-9eef-4ee2-8598-0d1d31e74137","block_type":"box","text":"Rule 144A Securities.","page_number":116,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"bdd497c9-4897-4875-90ce-8dcd0964c863","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":116,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"a7ace99e-9dae-4014-bbcc-ac958d88003b","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":116,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"932b98d3-33a9-4f31-bb89-02f92cdf4730","block_type":"box","text":"Securities Lending.","page_number":116,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"9f736d27-3d45-43ea-a0ad-b59f6872556d","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":116,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"38e8a750-8a51-4d86-820e-2903480455d1","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":116,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"579c148c-ff13-4cf3-84a4-4a899fdbe044","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":116,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"a71dc0aa-b214-4973-b841-774bcc3becdb","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":116,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"0ace311b-d010-43f2-a4d6-e38c42b9537b","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":116,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"a817c34d-23d5-42cb-98bf-47902e5deda7","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":116,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"6ce3623e-c642-4901-a962-47e6412ef8ec","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":116,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"1a6c1805-ceda-46e8-a625-f0cbd7310484","block_type":"box","text":"the securities were not on loan.","page_number":116,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"f5cbad63-b573-40e0-aa6f-94474bd94375","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":116,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"b10403aa-d05e-4430-b9af-4ae53f4d1de1","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":116,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"872dd2ca-5053-4668-9262-87309c724361","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":116,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"d7ee5b90-69a9-4511-8781-a67b708a0fdd","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":116,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"25c878bf-cbf7-4923-b178-b9d6346083c1","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":116,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"196900f2-f212-4dd9-abe2-570cca13a0ab","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":116,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"b9dc56ee-445a-420c-b2ca-3d9dddf2230a","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":116,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"5268ace1-4f91-49c5-b8ae-9f0c9f8670b2","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":116,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"f47a5d92-2d49-4211-8758-a39eb4abd298","block_type":"box","text":"i.e.","page_number":116,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"ef53c08b-0347-4748-a0e8-a2e93eb137b8","block_type":"box","text":", the risk of losses resulting","page_number":116,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"cbe40fec-b697-47f7-a498-7fb811414191","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":116,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"b94cb3dc-47d7-48a7-9f45-a69665450934","block_type":"box","text":"i.e.","page_number":116,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"7b26dc74-b1ff-4b98-b9f3-d61817d28f31","block_type":"box","text":", the risk of a mismatch between the return","page_number":116,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"2b7c8fd6-aa2f-4bdf-b588-9801af446a4c","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":116,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"64469c2f-0187-4b56-87dd-401bbec5d8a6","block_type":"box","text":"i.e.","page_number":116,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"753bd153-e9c7-47fa-9c98-456fb4dd67b0","block_type":"box","text":",","page_number":116,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"818ba3b9-87fb-4128-8b4f-253803eeca84","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":116,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"b65f1463-f97c-4c03-98e9-462e0c5c4ef9","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":116,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"88fe6b12-4cc4-4083-a4e4-ddcf7ea1c61b","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":116,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"fe47ae8e-6616-49d1-99d9-f1fdc5f9b746","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":116,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"54e80889-6850-49bf-bfcc-895a2feca1b3","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":116,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"b08e5a0e-6ae6-4e65-af35-e95a37d3dffe","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":116,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"30c7752f-cc96-4cb7-8249-3ae917185265","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":116,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"14406590-e8fc-4d37-97ff-8f5b6dacc2f0","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":116,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"095dc59f-5c70-48c1-b036-b30d71a7e514","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":116,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"76125280-8afd-402b-9e57-fb3acf132ece","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":116,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"23abc1b2-83cd-4880-969c-c629445b6af5","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":116,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"756edbc3-1728-4f59-9b37-cec39e16db99","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":116,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"3f8ac058-ab47-407d-92c0-e0146e8f2afe","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":116,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"8f7fd497-d9b1-4240-8f5c-3a27d6d501d6","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":116,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"67cb6a52-fd68-4b71-a3a5-1b4ec59ef90c","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":116,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"4f3f6187-1d07-4418-89f3-08cbc0d85268","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":116,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"2b5837ff-f3fe-4c6d-84a2-018ba7757392","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":116,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"fc1e63ab-70c3-4493-8718-5ef5b85e2b22","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":116,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"bc0b47e4-a65b-4589-a067-28130945d14c","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":116,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"e7961289-a7a7-4b3c-a369-1c8f096d8a2a","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":116,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"6ea2262d-37f1-4132-9eae-047381ca4c86","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":116,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"d90a1567-a28e-4332-ad3f-c5b1438aca1e","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":116,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"7b71fcb8-bd69-4639-b879-4f80c2bb3ae0","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":116,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"57af5a9c-e550-4cbf-aaf4-0fc9deb0f10c","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":116,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"d90cb284-25a9-4729-940b-b9bc864d504e","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":116,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"0bc1f267-67ce-440a-bb2e-ea811d1147ca","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":116,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"6c55b5f2-daf8-49e7-a342-b80857fe1794","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":116,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"597ac4c6-84a8-49a0-879a-9ffa4d25a380","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":116,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"128b44f7-bfcd-4349-8c62-232bcf29994c","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":116,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"d9680524-e23b-40ef-84aa-1a4ea0c34e63","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":116,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"24cdf82e-4970-40b4-a6b8-c75913e59c30","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":116,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"8fc65d64-5173-45dc-a9f7-2a36f7bbb6c6","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":116,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"1a5681c5-f6ed-4c8d-8f8b-840e907edfb0","block_type":"box","text":"II-73","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bed2d2f-1e34-490d-ac4a-12f6eae94058","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bfbd1fa-56c3-4ea4-b08e-b08c6316344c","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":117,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"b0dd97c7-4a3a-486c-99ce-6c6a1ec176d0","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":117,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"02130f5f-21ed-4139-a93a-3acabf89e3a7","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":117,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"94c4ab46-33a1-4c50-b7b5-2f4ddcc48b51","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":117,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"4344a6c1-35ec-4b09-b510-e31a6532ade1","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":117,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"5b282d0e-105f-42f2-a9c8-49bf77baa751","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":117,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"196eab61-d1d5-40f0-95ac-2621b7251a6a","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":117,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"a27d07d4-df9b-4b7b-ad01-643f162f4b85","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":117,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"7b38e552-5615-4cec-818f-09a973897e75","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":117,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"8a7c78d2-5d86-459d-8319-f33ef1ab0b91","block_type":"box","text":"the current expected compliance date.","page_number":117,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"0aa1d89e-0e67-4746-b199-32060ee8fc10","block_type":"box","text":"Short Sales.","page_number":117,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"0311d730-c433-41b0-bd9b-6ffde5b76272","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":117,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"a401272e-79f7-48be-a8d1-52eb36712277","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":117,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"5b3ac855-f486-4fc8-9e73-a6f67f23b3c9","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":117,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"b81652fd-2183-487e-a566-82618c054146","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":117,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"881ea0e7-6169-48ed-ab47-3396b1359b35","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":117,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"4d543218-0845-4c3e-bf7c-163e2ca94560","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":117,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"71db22f5-889b-4137-9ffc-789477aa73be","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":117,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"1aebf028-81cd-4886-a650-cdd7c7858a3a","block_type":"box","text":"securities to the lender of the securities.","page_number":117,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"476c51da-d835-4d51-bf2b-8c0b61802747","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":117,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"aa5071a7-1a3a-4b9b-9fb9-ce117e72e210","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":117,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"2fddb083-458a-475b-b8dd-10215f7c3047","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":117,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"db39bf4d-5966-49f4-8599-0a347cf5011f","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":117,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"c8e2fdb8-0600-4604-8d22-f163974f6d86","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":117,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"907ad23e-b6fc-4908-a68c-2bb091e446c1","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":117,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"4c80e537-6b89-47af-8a1d-c94a54f78be4","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":117,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"c8db2f12-3c5c-45bf-97ae-d9a6cf05f691","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":117,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"8398cb2f-745b-402e-8a28-e18b0b5152ed","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":117,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"584f93cf-3e47-49ca-9efd-57d419eedd2d","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":117,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"82199f7d-9df2-4093-bf76-a5dc43a7be4a","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":117,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"c59e7134-146f-4c8f-9ac4-2852a77edeb5","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":117,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"163f8ee6-b58e-4ebe-84d8-bad1b98b8a8e","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":117,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"9c5fc56f-e694-4af4-a099-7d26a078f6ed","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":117,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"4f2a2dfc-70d9-4b9a-b38f-337ef1c54466","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":117,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"913430f5-9d73-4ffa-b820-32f5195edf5d","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":117,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"2ec9d7bd-9a12-456b-8ea3-8065b4276b0f","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":117,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"985750a3-2d28-4c45-a3ff-bf5dacfe9bf4","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":117,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"4c9d4b49-cd6e-4f26-a1e7-812751ccc2f9","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":117,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"d538c279-1601-4aff-85a3-1146fd19d13e","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"a45130bd-c239-4c19-b6d7-ec3abff295bf","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":117,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"bd8f1a91-985c-44cd-9ac8-f18808f02709","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":117,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"b584b72f-0879-4233-8fd2-088c5789fdcb","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":117,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"c0d001d3-c8d4-4094-aa37-a6b6618165e8","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":117,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"94f79f87-c1fa-4a8d-976e-47da9b6ab3cc","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":117,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"6169d511-dc81-49f7-a742-d6ded574ecc1","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":117,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"634eefbe-2a24-46ad-9161-873ba18219b6","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":117,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"43639556-3962-4298-964e-cda2e14df9cb","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":117,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"448f03ff-1b12-49f3-8339-1ab439f60523","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":117,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"3e26321c-c8b6-4dcf-ac04-a72d0161bcf5","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":117,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"3bb0785d-9761-412e-9261-ffc21a7b33f9","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":117,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"6adc1b8f-ec9a-473b-aeb0-8218cd55bca8","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":117,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"0c2cd744-3f41-46ce-9903-9440b3e907b0","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":117,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"6badb2fb-8573-4e48-84f4-e3ccef295e4a","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":117,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"e664ddcb-ad3b-43e4-a2be-bb5b306dd061","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":117,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"159ff4f6-79ff-4b4d-bc2e-3ef34704db8d","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":117,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"cecf98a5-76db-4b1f-9f11-aedb67f7df9e","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":117,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"51b83105-c326-4b69-85a3-4656c0770c40","block_type":"box","text":"II-74","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98febd40-e388-47ff-8321-7b2f3498e561","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05c3b3c7-2ce0-45af-b7e6-36c7bdf1b75b","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":118,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"7e0584d7-6af1-4129-81d3-bf1ef89eea86","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":118,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"62aa9097-b188-426c-9c0d-4e45d4aeaa1d","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":118,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"c002fa3d-35f0-4b85-b046-4a2fe5a20771","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":118,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"87b700ce-fd58-47c2-bd43-6834e1d46ee8","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":118,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"9ab1a964-fcd7-4c24-9b59-af22c61574af","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":118,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"f98b489d-1ccf-4564-8207-da2598dc8611","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":118,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"06c73c13-c59e-4778-9c3b-b3ecfa678b30","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":118,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"84d7dc02-0f77-4a68-a5f9-d75ea25c22b3","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":118,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"fbd27ef4-45dd-43d9-818f-b7a7546ab8da","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":118,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"6443bb76-376d-4375-a879-a3bdc3e582f7","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":118,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"636cc4d5-53e9-49b2-b6b8-d7b1af5e54df","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":118,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"24ac9b8e-c878-41fb-b654-063e67d5a689","block_type":"box","text":"Standby Commitment Agreements.","page_number":118,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"416699dd-f547-422f-9c3e-3e76ce7c4985","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":118,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"c5b2925b-dbb1-437e-875d-946e079f53ca","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":118,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"dfe59d88-be7c-4f44-b249-50638beb5e1e","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":118,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"771392cd-72a8-4818-8537-2be08d0963a0","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":118,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"a53aeaea-b0af-42c5-9544-26b21a6a1250","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":118,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"47179178-5faf-43b5-a9dc-c9e71608ec29","block_type":"box","text":"advantageous to the Fund.","page_number":118,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"2f6e4de4-fd70-40b3-b803-f2c5e22cee9f","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":118,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"1e7cf106-1011-4f0d-855a-8db76a8ce520","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":118,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"a15bec10-875b-4fb2-a82c-0fa0db621b61","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":118,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"fa684378-901e-4922-b9be-893ef29eccbc","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":118,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"d33522e5-7fa1-4d89-9aab-dfa0b672fa84","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":118,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"d26df13d-9aab-46b6-9b1a-3fcfedadb127","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":118,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"3228dc15-da52-4813-9637-eb849ce0d051","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":118,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"c7f0860e-5896-45b0-944b-7e875fcaf455","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":118,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"2152a271-8625-4f23-b2cc-5a4a92f0d1ef","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":118,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"da1f7357-71ff-4f95-b7b5-541d8d07b3a0","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":118,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"1798bc29-19e3-407a-b054-35d9be892423","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":118,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"47b6db21-1b3b-4827-92ee-f594e350fcbe","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":118,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"5b99d97e-f5a1-4192-bdb1-692e5aa4c70d","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":118,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"76b34861-8d86-4afb-88d0-8c620a45066e","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":118,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"7cae84e5-d61b-425e-a91d-426d6f90aa6b","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":118,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"609cad91-1ac3-4671-9ba0-67041ebca3dd","block_type":"box","text":"Stripped Securities.","page_number":118,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"ed481d9a-cad5-4c6e-916a-e403a9fa3915","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":118,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"d44e5dbf-c6fb-4373-8027-490eb7b08633","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":118,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"53fa1f88-7555-4c1f-a535-f9e0e59ba4b0","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":118,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"dec61c7e-d15f-4a84-a046-5d352579b258","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":118,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"3248378e-4500-42e5-bb60-ccb2736c6a72","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":118,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"11db02bd-ae7a-4267-bcdf-0fc9def3f08a","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":118,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"f6a148b2-909f-48ab-97e6-d61397e34b1c","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":118,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"e94bb4a2-edf6-4a96-aa9e-0f3c2a1ad210","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":118,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"5e2536a9-a489-45a6-95b0-e1d4f8a3540a","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":118,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"a5e41fa0-8fa3-4a1a-bbbf-248a6bf7c9cf","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":118,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"f2f41b04-e3de-4206-9a97-6089a22284a2","block_type":"box","text":"Structured Notes.","page_number":118,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"3cd898cb-5bba-43ae-a430-0bfb69af677f","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":118,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"0ce50b6f-b8e6-4870-a681-57c8ac40f0a2","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":118,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"632efa80-bb1b-48e6-8b5a-7151e5f2b42d","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":118,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"c4e6fb31-d05a-44e7-ac92-5ade0b7c16ad","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":118,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"ab186e6e-550d-4bb9-b9a8-5b5a2ccc607a","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":118,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"aec6ef71-7dd1-4e1c-8e5a-b50f1e9fec91","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":118,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"4525e1b2-2e0f-47e3-b924-a7af39149d04","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":118,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"54644a3f-fb14-488d-9703-05bb7ce87b2d","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":118,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"17f8d733-afc3-49c0-b85a-1d179be25bac","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":118,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"d7563cd8-da31-4a8c-bd33-1a785ec3a3f5","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":118,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"b1834f81-6afd-411e-b73f-df1c6956ac2a","block_type":"box","text":"II-75","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e56e224-fb82-438c-84cc-ce4321d36d2c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56b4a12d-8ba1-4fd3-846b-18ccf577d200","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":119,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"57ba18d0-d9e8-40bd-973a-a89e60d63848","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":119,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"4cd91d07-8a57-42b7-a586-4eb2ded19e74","block_type":"box","text":"the risk of loss.","page_number":119,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"1995a9f3-1a11-4da3-9d03-cd7b67706efd","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":119,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"2afdac6f-8831-4cd1-abfa-b0e3c6bd7664","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":119,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"fea8628c-6411-4d1c-a899-1b35b7b3bade","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":119,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"e878ccac-e906-4cbf-b3b9-f460659c2b92","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":119,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"24dc9dab-fb16-4c95-a878-40ff5f952bdc","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":119,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"d6d553f7-3b85-4dc8-878f-499b7211d91e","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":119,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"cbf6f2af-9246-4c88-a800-b1b1b68361a4","block_type":"box","text":"Taxability Risk.","page_number":119,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"22511d99-5ab7-40ff-9aed-403ca1dfacc5","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":119,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"75df0137-12c7-446d-8ced-0d1ad611272a","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":119,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"8644f151-1396-4b7e-b9ee-560734c7c92f","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":119,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"20d006ef-00d9-4f01-a667-b2c412525163","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":119,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"9eff3737-4791-4ad6-affe-53ec85bf0ef4","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":119,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"e8a9f6f5-3850-4b3d-8f0f-6629a396fda8","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":119,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"0a0408c4-7aa3-44fc-9374-119d2af8fc3d","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":119,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"26dbede6-09e5-4b6b-a3e6-458f44ecc85b","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":119,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"95e0de62-fe23-4d8a-9651-5900bdde31e0","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":119,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"211f23e4-d5cf-42e9-8542-e157af421272","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":119,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"14c6ea8b-9e4b-4789-916c-db74d0726a87","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":119,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"b0c967d7-b503-45ea-bc75-8b9e9c2f3be3","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":119,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"fe40bd38-c423-4d24-8786-b9988fc0bd77","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":119,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"fa023f2b-08d0-40c2-8626-6a4b6fe751bd","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":119,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"7ec7048c-d5b8-49d9-8f35-1506dcc4f285","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":119,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"2561f0dc-eba2-4977-8199-9e7e7ce32302","block_type":"box","text":"the value of an investment in the Fund.","page_number":119,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"01b7432d-8fe3-41a3-8cc7-d8a8a660ad5c","block_type":"box","text":"Temporary Defensive Measures.","page_number":119,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"077a4b33-fa6e-438b-951c-6a76b2107cf8","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":119,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"3970a1fe-83df-4819-83ce-abfc05e1a1db","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":119,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"55837ea8-731d-48d0-ad53-1c6438b22fcc","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":119,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"49d9711d-23c3-47ee-821d-fbd8e012314a","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":119,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"0f5d78c4-8ffe-43e7-9d97-408a40067ce7","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":119,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"c5c8b492-3d85-4e6c-8143-d433c567ddf4","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":119,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"1f069ec8-69c4-481a-9210-2895cc5ab8bf","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":119,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"c7bd4006-3e1d-4226-9923-83f153b2435d","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":119,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"a47cdbee-889c-4aa1-b889-7b73404616f1","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":119,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"6f1ee33a-fa40-4829-8e9b-05670b759a43","block_type":"box","text":"its investment objective.","page_number":119,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"9cba9bb7-1918-47c7-a7cd-f5abfd68dd09","block_type":"box","text":"U.S. Government Obligations.","page_number":119,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"8dd94101-9166-428a-8171-afea140557cc","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":119,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"2a88f62e-e057-4f39-a469-450035cf405f","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":119,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"2a55fd1b-6d96-4d62-a70b-4821b1a31636","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":119,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"f2e96fa8-5884-4eca-983f-4f50e9ee4538","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":119,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"ef3aa236-d161-496a-99e4-81df39a7c634","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":119,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"5e2e7c4f-73e5-4146-956c-d1f82d465ed4","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":119,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"72b58253-2eca-47f3-acea-6532a95d924e","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":119,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"e709f344-d254-4767-8e6f-2a1f06fb8be9","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":119,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"eb08ba23-f65a-482d-baf4-e4b697b2bae4","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":119,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"cac6a306-3588-4a9b-bddc-1cb6b6085641","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":119,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"9e07a34e-9d16-415f-b657-e46730a49727","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":119,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"552a8ed0-91a1-4d64-ad5b-069922a12aa2","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":119,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"45713553-fc90-470b-997a-3c92c32f3bd0","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":119,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"7bc15470-c8cc-4838-8c2c-4da3ae464746","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":119,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"5e77ae98-e348-4b57-8d80-69463ea0bda3","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":119,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"50f86db2-608f-4706-b835-73df1f8e1fbd","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":119,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"27b56a97-5317-47f6-b2a6-ceafe696035f","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":119,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"bbd3befe-6d83-4e47-a8ed-d14e462f8e62","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":119,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"cdce6ef6-1358-4ed2-b493-359c2bcfbc69","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":119,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"03bfdd11-8ba4-4248-a61d-6dfb244a4ce7","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":119,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"68c896d0-bb68-4f92-8f89-a8d9abbfcd6b","block_type":"box","text":"II-76","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8d08d3a-a65a-4fe3-8a8b-fdf799690c7d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"519f6faf-f270-4108-9b83-edda5c749da1","block_type":"box","text":"U.S. Treasury Obligations.","page_number":120,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"63c421ff-4ef1-4ec9-945b-1e2f2f6f7f46","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":120,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"ed1fa817-bb70-4d79-a10e-42191271ff50","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":120,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"cc171cbc-e6ff-4aab-9570-7765487db6ff","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":120,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"af704e7b-9ab6-4eb5-a930-c781219e4218","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":120,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"aea00274-2074-4b08-b4e3-40a889b0bbef","block_type":"box","text":"do so.","page_number":120,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"1c84fd20-5bc5-45be-85e1-4469864ea310","block_type":"box","text":"U.S. Treasury Rolls","page_number":120,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"7c7cb670-c042-443f-9da2-31d40075ef8a","block_type":"box","text":".","page_number":120,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"3b632452-3947-4c03-aadd-05ea330eb7d2","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":120,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"8111f0c3-f07c-4645-80bf-de16ddffeeb2","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":120,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"1d12dcc9-4010-4d3d-af6f-5cd32372debd","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":120,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"da44706e-9416-4024-8868-f1b812b8c2db","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":120,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"0ba60129-32d7-46d7-a5d8-2b732f835fcd","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":120,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"b44d0147-52b9-4827-95da-45aabbd76adb","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":120,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"88a115bc-772f-457d-9ff9-0c2c491879f7","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":120,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"9b81ad02-aada-4f12-8b92-250ac4cfba53","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":120,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"cebfd659-d891-4721-b370-7f1d82d3fd31","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":120,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"131f5f10-d303-4bbf-b811-36bfdf879ea6","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":120,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"e2fdd6ad-cc75-4eab-8b9f-eacb847c01f8","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":120,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"f9c849b3-2a9b-499d-91cc-64a1475c7c97","block_type":"box","text":"Utility Industries.","page_number":120,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"41b25e48-86e8-4244-b12e-181796714ac9","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":120,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"e24591cf-86ae-437f-a39a-8004045941f2","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":120,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"4083314f-71e0-4e64-9f1f-05bc5406b558","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":120,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"f57c2ab6-06ba-4e35-a858-a41f22c55bc7","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":120,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"abe281dd-1f82-44b4-bca7-5d49d3aa29ae","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":120,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"e1ce07db-c12f-42a6-8b94-1b20915388ee","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":120,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"1af28f54-dff2-4ad1-8d44-fc070cd9f8da","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":120,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"6ec81a06-e06a-48ed-b652-9809f437f97d","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":120,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"60faecdf-f16e-4744-b0e0-ea9e089c76c1","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":120,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"20ad8b04-f9a9-4e9e-b11d-4ab0a62eb7c7","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":120,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"83999255-0d08-40b7-901c-46d94927da3e","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":120,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"cd03b81a-d2b6-4244-bc0c-ecd8a1ee05de","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":120,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"7d06d26b-70f6-4c10-a16c-a0c6f02dc779","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":120,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"21313ded-7ace-4119-82ed-c72ddf26f001","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":120,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"47dd6105-519b-4a3b-985f-49de599398d6","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":120,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"b6210eaf-7b30-4b5c-9785-12d88a437f49","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":120,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"172e36d7-dc5b-4ab3-9c70-773c8074dbfe","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":120,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"624cc623-9e1c-430d-8f7d-15e925d5b112","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":120,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"b36d2f0a-d561-47a5-bf11-7482312ee9fb","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":120,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"270a5735-6198-4e85-a2df-357ec31e16b2","block_type":"box","text":"utility.","page_number":120,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"c4d3b162-b2e0-4d92-8fa0-7c1b12405837","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":120,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"09d82e6a-de6f-4dd6-959d-f3a0dc2a83d1","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":120,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"c397f15e-c42b-47b6-a681-9695dab6460b","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":120,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"aabb26c6-1ab4-4fe1-a7fa-7ab8f682914c","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":120,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"6d4f644f-0bb3-4b99-910d-a525a4a41aad","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":120,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"e4d334fe-9b01-4ae5-a0e7-9f9b498937cd","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":120,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"a2534f9e-1382-41ba-ad74-3a6f429e6bca","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":120,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"55da172e-e34a-47cb-bea6-2ed451491d24","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":120,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"4b0ff79a-cee9-469a-8946-8d5b45babcc0","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":120,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"68b360d5-6df0-4bb1-becc-805404f1a163","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":120,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8383a636-088d-444d-ac32-050505a2eeab","block_type":"box","text":"continue in the future.","page_number":120,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"14770a76-9a5b-4782-8a8a-e0e2c0d93352","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":120,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"acc4a687-5f27-4c73-b28d-b37ceb3fbf3f","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":120,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"8cb82b9c-1809-42e1-ae24-d8cd7b3b7224","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":120,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"de62decd-3ca4-477a-8b42-53bca408bccc","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":120,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"26cd64a1-6738-4778-84b4-278f06bc8d94","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":120,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"ba2f9b98-209f-420b-82e5-141ad0a0f1a7","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":120,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"06d27fc9-5d58-4584-8dd1-e02c3e67ff8b","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":120,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"fd3adb80-c7a9-42e9-ad2a-312c29a54abe","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":120,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"7867b97a-7e0b-4e81-8172-7f3f53540980","block_type":"box","text":"II-77","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"35f4073e-d88a-47b3-84bc-3097dd02f461","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef6eab37-5c2f-44c1-ab72-b82e2861ecd7","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":121,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"e1527cb3-00aa-43bb-8e48-39f49a9e3135","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":121,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"83028eb7-50c4-489d-b0e6-41de1767c681","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":121,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"94a6461d-3be5-424f-bb19-72db58f679ec","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":121,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"03b57210-5096-481a-825a-62f4a85d8aa6","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":121,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"9e47bc77-3dc2-49fc-8af4-6f305814ce52","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":121,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"a81b3773-8d44-40fd-ac14-0fa5ab2c1a30","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":121,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"01654964-9b41-4e2a-84d6-a4b273a000f0","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":121,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"1cbf19fc-83f5-4377-b881-1a0603e09d25","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":121,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"310309db-c7dd-4ddc-b892-5ee545ec515b","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":121,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"f7f30a71-6f0c-4035-b853-24b9832c51e9","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":121,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"8afe2bc7-5c73-45bb-8f08-f2b9b6c8ae5d","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":121,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"51df32e7-bf91-4795-b98c-e070a31a8a35","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":121,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"e359f8a5-4a93-45e4-af08-60fe409c4567","block_type":"box","text":"ways different from regulation in the United States.","page_number":121,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"5450127c-5df9-4aef-a23b-1960a17a2bd5","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":121,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"730fd2e2-87f9-4b32-bd19-be8f36a47cf6","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":121,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"7ed56df4-e60d-4e10-94b4-036560040880","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":121,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"c3061355-3ef7-443d-81b4-f50db3038ccf","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":121,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"f8eb240d-fd62-4fea-908d-4ed5d9dd786d","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":121,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ce38947d-0807-4630-9ed7-dad67913a908","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":121,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"8b0867c2-b7ce-4b85-b37e-cc73e32211ef","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":121,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"e08fd2e1-ba9d-4706-9cb0-d355084f29dd","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":121,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"a564a6d2-2ccd-455c-ab3b-69b72f9e034f","block_type":"box","text":"increase.","page_number":121,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"8ceb0d5c-01e2-4f6e-a9aa-e4336e55d53b","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":121,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"b950a668-e236-4d67-b8bc-417540e21352","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":121,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"f158d1bb-de08-4be8-9d47-73de8a701463","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":121,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"40a04877-89ad-4658-b0b5-b7c2a7eef185","block_type":"box","text":"Electric.","page_number":121,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"520c116e-554f-4234-815d-5e331668591f","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":121,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"15cc92b1-9d3b-4671-8d57-dc4faa072324","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":121,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"a3826f9f-97eb-477a-aa1a-b1426aabf48e","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":121,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"33d8d3a4-37f9-470a-b4a1-8c75444523f2","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":121,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"95edc508-4643-4765-900d-337a5da5bcad","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":121,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"6fd1cb39-6ce2-481e-8d38-54ff7317ba30","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":121,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"f41e0574-3c1d-4768-b0ac-9def3eb840fd","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":121,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"e8a30d40-e358-44a7-a126-65fdc6c0e0b2","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":121,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"310c1ea1-6b33-4389-9fd4-937f66bae3d1","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":121,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"b11e6467-add0-44b7-b6f4-3a9ab2bebaa5","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":121,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"b958c149-743d-4fc3-8788-3f921d346ade","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":121,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"1be3d459-feee-4f66-9c3f-509ead677351","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":121,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"b02a1d68-9107-44c8-a309-b9941d6d22b3","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":121,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"7bb04199-e0a4-4082-9e90-3fbb4c625fca","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":121,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"168d11a6-f918-4c35-a6de-f4ab825a4935","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":121,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"eb8a0e4e-3426-48dd-b0d3-21fb6ad30d57","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":121,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"b09059d7-bf73-4c8f-aed9-f47f853671fe","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":121,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"aea0c941-a109-424e-a0fa-332e2722cdc1","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":121,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"6a0bdd60-f3e4-4193-804b-ba00c4340b49","block_type":"box","text":"and for decommissioning such plants.","page_number":121,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"e620bbec-63d7-4d88-9517-f1fa8bac46e4","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":121,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"ab945711-3b26-4af3-b7fb-2bbc83bc0b40","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":121,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"7061fb1f-f808-47ab-ae0e-4c83a6f9065c","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":121,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"fd98cb5b-f4a2-4804-bdb0-9a16ad66e90d","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":121,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"21fe059a-1172-4112-8199-2a52ad1e662c","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":121,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"3f4f6163-a815-40cf-9fb7-4f19d3d0e0ff","block_type":"box","text":"greater predictability of cash flow.","page_number":121,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"7e2b2f39-bc7a-4719-afc7-2f7bbb3b47fd","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":121,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"feae2a54-c902-4973-b64d-fb14548a0e82","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":121,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"10529f27-ed97-4c8d-abed-c655024c23ec","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":121,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"44b77a1b-4548-4909-8216-40f04d55d21a","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":121,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"cfc49272-0aaf-48de-a3f0-8ce70f04652d","block_type":"box","text":"II-78","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d1891fe1-b79d-4c4d-999d-15b25465acb9","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca3d04e6-8a2c-45b7-b6e5-66aa75441079","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":122,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"be3eb444-de68-4df8-9cd6-956e13b022fe","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":122,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"ac42803e-ae91-428e-9b84-068a179ba6f1","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":122,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"905fd2d4-4481-48bd-acbf-8040275568ac","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":122,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"5773f552-737c-472b-add2-66a56a2ed27a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":122,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"f04e117b-f898-49b3-887c-88020a54ed9d","block_type":"box","text":"Telecommunications.","page_number":122,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"81b02d04-829b-41e1-a72f-cf0a34041c64","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":122,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"4e1d0e49-d8f7-4a58-871e-4d5014a55208","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":122,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"edfb2391-148f-4636-ba5a-2a623af6a3c5","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":122,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"76b5f46e-4848-4d7e-bab2-9e26318cdaf7","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":122,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"4fe13ec0-db7c-4fa2-9e3e-fc288d37e7ee","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":122,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"86a370e7-b815-4d76-8e65-661b1e5647ce","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":122,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"e1416ede-b855-4477-b058-b19d0bf0fa26","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":122,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"36b45b65-2e9e-40ec-895f-2a0beac6c352","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":122,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"db3585c7-d600-4511-b034-e1e9e55e22e8","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":122,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"4de4e57e-bde7-484b-917c-23fbfbff3506","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":122,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"2178829c-8d12-41c3-9313-7d25f7e8facf","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":122,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"922f2040-6ebd-481f-94cb-477c4c698937","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":122,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"74be8ab3-007b-46c6-bbc7-aaa37cc8e377","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":122,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"c4e9b9b2-8a71-4c1e-aa39-7f9b8c8892dc","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":122,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"9bd17d1c-e8bb-40f8-9634-74a83efd9316","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":122,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"8cf595d1-1a5e-49e8-8c51-da633898a33b","block_type":"box","text":"residential, corporate and governmental customers.","page_number":122,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"4f158874-26c5-47ef-b6d8-b6f3744f0cf2","block_type":"box","text":"Gas.","page_number":122,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"da11cf92-22db-4ae7-b11a-fbcd14e6beec","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":122,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"aef76ef9-3f70-469f-927b-00cd89a44e4d","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":122,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"5ee2be27-206c-499a-b805-e3d71b57dd3a","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":122,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"9ca37ab5-6a3a-488f-a624-ef54fa5ecd69","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":122,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"13a6899c-1d20-46b6-a7d8-0f4b7ce4dfcc","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":122,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"22315e67-fa39-4df0-8b85-0af9c07a24d6","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":122,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"05fab3bb-e7a0-4e61-9310-74c14d40b0cc","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":122,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"7043282b-2959-4336-ab9c-b7522cee6c4e","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":122,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"79972d76-e04a-4eb5-9ef4-a8d99b572256","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":122,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"697936f8-b85f-41d2-abd5-ebbd68d08617","block_type":"box","text":"Water.","page_number":122,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"70b15518-6c51-4240-98c2-838d1bc4970d","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":122,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"6b44be08-cf86-4f7d-a2ca-e4c4d7fa99e4","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":122,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"6f93c701-455a-4e22-9ac4-3ff9fa24e45a","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":122,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"a985a240-9095-4675-abc9-658da300c773","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":122,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"d54ee04e-071a-45de-8507-1258d2190de4","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":122,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"fec86b5e-0b6c-41c5-b059-d7316ae1800c","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":122,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"7673a0ed-1f1c-4ba2-aaab-7251d6b2403a","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":122,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"95143b86-486c-4801-b571-ac5f2712e9fb","block_type":"box","text":"Utility Industries Generally.","page_number":122,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"71c4e8a4-b9f0-4d98-8693-1c70ce824e4d","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":122,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"c82495fb-c2ed-4bc3-85f0-78c5abafb708","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":122,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"80d52dd7-723b-4a23-ac8a-1551e812d667","block_type":"box","text":"not develop in the future.","page_number":122,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"ac93e9d0-dc9a-4826-b521-26505d7bfe17","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":122,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"2cbc409f-9721-401f-bc35-08e5620e668e","block_type":"box","text":"A Fund may purchase or sell","page_number":122,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"7c89bdb8-1db2-4d99-a9e9-732c5b06d805","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":122,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"d141feb2-1645-4f2a-9941-2f4b6e766e39","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":122,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"60af5185-6bf8-44d1-9c9b-049afb170b3d","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":122,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"c6c232ca-0709-4432-9097-94dd53252011","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":122,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"861c7a75-3153-4d05-a2ac-b80f9d6e799b","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":122,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"0c9b134f-3e2b-42d7-8d2c-bc99ea218664","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":122,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"05f77816-6076-4c03-afc7-60227558bbc0","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":122,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"d22dd752-7f3d-4b01-897b-101123c28973","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":122,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"c215a284-ad8b-409c-9376-73e74283d02d","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":122,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"fb8bde59-35e8-43d4-8b3b-7d911212f4a6","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":122,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"e2d875bb-7398-42e7-8d0e-8b26f4b2f930","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":122,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"bc68237a-c10d-4bbf-a512-4d83970aed52","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":122,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"bf925832-4692-497d-975c-8a087118f461","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":122,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"77379abe-3885-468c-be38-fb4072002963","block_type":"box","text":"II-79","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c7938b04-54ef-44c4-9796-d0ab57520e8a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdd16add-6219-44b2-90fd-7eef2549d248","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":123,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"585a3ea3-dc20-4931-907d-4dbd42d520cf","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":123,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"f5c87c18-f239-4118-8bb3-8cf9c9f1097c","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":123,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"8469b9de-978a-4cdc-9589-8aa7b7e5f98c","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":123,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"619c97a2-3d74-4fde-a91d-0ecbcb26f4e3","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":123,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"50d2e50a-c9ab-417f-bbbe-d461085ecd5d","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":123,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"68f741c0-3613-49b3-9159-8f7534425205","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":123,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"410e9700-60ad-410d-86f8-3ea9bcc68f85","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":123,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"f4ffc1b5-aecb-4a84-9a79-364edf121d29","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":123,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"bd5d3ec8-98d1-4913-84be-2d024d362e39","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":123,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"b19c0cdf-5fbc-459c-aefc-6c21289de767","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":123,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"2746a52c-486d-4273-bbac-977c52373865","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":123,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"b9fed146-2e7b-472f-a43d-20404a19d8b7","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":123,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"9ab08fa5-0948-42d2-8a2f-98293989a067","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":123,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"901de6fe-d7d0-4a95-bf7f-0f3cf5549f6f","block_type":"box","text":"securities (","page_number":123,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"ed16e049-b043-46c8-9323-133df47d4c0a","block_type":"box","text":"e.g.","page_number":123,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"5d347b43-f804-416b-aa3f-46fd81dffe81","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":123,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"d2363e49-4c51-4424-bb9a-96380dc74711","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":123,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d54918e9-8e37-4faa-9a4f-73d51397b96c","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":123,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"230ed284-4bed-4112-88f6-0ec76975966b","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":123,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"a5e91221-ebd4-484a-9fb5-8e36a2dd6373","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":123,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"e19c0a4a-7eb9-4989-934a-c7e96d718f66","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":123,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"649bd625-0cae-409d-86c0-837498d65bd1","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":123,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"2eb791c0-1650-4e8a-a59c-79b4e70e944d","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":123,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"7a5a02b7-406e-4395-b5b3-ed91859080ab","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":123,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"709285c4-a59b-403a-9001-c2647cddcbf7","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":123,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"799f4df5-4f71-4da0-8d59-6816b4d1edc8","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":123,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"136d6c42-12a7-4591-8421-9a6979e302bb","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":123,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"e0c0d902-8ccf-4785-aceb-5152508302e5","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":123,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"fa8f35c0-345b-4383-b0a3-a3d257f83897","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":123,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"3090f75a-e68a-4056-9391-8fc28644e336","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":123,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"358c41e1-65d7-4778-85ef-9cb8eb627eee","block_type":"box","text":"Yields and Ratings.","page_number":123,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"45f7af58-5752-41b2-a1e8-e617bd3adee1","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":123,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"047c0426-a702-494e-b0cb-e2c146f22032","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":123,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f06b69a3-3044-482c-acc2-6bb86f789fb9","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":123,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"1021a8fd-b497-4bc1-ae5c-ca2d84fa75a1","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":123,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"8acec8cc-9e4d-4bdf-8acf-068f16ce850f","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":123,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"166744f2-eeab-453b-8eca-35f41c9c0ee6","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":123,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"694f47af-4755-40ca-96cd-39d9fb7c80a6","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":123,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"b1e4c197-37e2-4bd0-89d2-6e09d3a32529","block_type":"box","text":"continue to hold the security.","page_number":123,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"1d13d9c9-60fc-4770-86be-a797624470f1","block_type":"box","text":"Zero Coupon Securities.","page_number":123,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"839b0da6-f12f-4e26-8393-2a0f0a0e3d90","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":123,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"9589c8aa-47c3-4b28-98d9-f1948a25f5e3","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":123,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"3b4a7aae-6a9f-4351-ab53-f4bf5d977cf7","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":123,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"6653ce78-78d6-4da0-be71-ca8612f7e45b","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":123,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"9bd40e76-d19b-48ec-ab89-90c82fa73551","block_type":"box","text":"security.","page_number":123,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"926c747b-10a8-4990-bfc2-be50d58db2eb","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":123,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"c638762b-91cb-474d-8e21-9207cb803847","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":123,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"d304ee7b-55fa-4990-aee0-14b7f87773c1","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":123,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"8857ad6a-db13-4913-8299-a329a398a33a","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":123,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"88970111-893c-4a95-bf4a-094ed9f691ea","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":123,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"63d42501-94a5-481f-8c24-76bdb5938e2a","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":123,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"ede5ce64-7c35-469b-bb31-a39cd826e98d","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":123,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"dc21cc7b-fadd-4880-971d-4c1befbef2ff","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":123,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"04bc2149-c9dd-436f-b122-31e86fd216bc","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":123,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"7256d765-cd83-4a66-97ac-a861e67514d1","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":123,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"8e776693-95d2-43e5-a56f-3b1e00c76a11","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":123,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"326ffa8c-752e-40b0-a28f-e5071b5b9d64","block_type":"box","text":"II-80","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"023ab439-302a-4164-a6bd-0680359ea089","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d0460bd-bc7f-4fc5-83dd-9642ac9a09bb","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":124,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"74162b80-ed0a-4e4c-8571-4339bb7f81a6","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":124,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"bb972e40-df64-4695-b9a9-00619c5640a5","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":124,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"6923541a-5e98-4ab0-982b-c13985963072","block_type":"box","text":"intervals.","page_number":124,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"2a67e308-9f91-41aa-89c2-24bf64ff373b","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":124,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"f2200639-c442-49eb-8b0a-d527b591bf98","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":124,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"cd6395dc-e115-4030-a99a-f04af1a76357","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":124,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"8b0d6ca7-dc7d-49f6-bdcd-b348631ae211","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":124,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"67778706-c2bf-487e-bf15-d51b4658caf5","block_type":"box","text":"exposure to zero coupon securities.","page_number":124,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"bef4e7ed-6828-4331-bed0-7d6aaa604082","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":124,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"5d773dd6-ba8b-40c9-84af-76f2b1797e63","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":124,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"1b1774ad-710c-4d38-961d-f5b5486ce05f","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":124,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"b884d8f6-d8c7-4846-b8b8-251efe1ea811","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":124,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"2f62cde4-da48-4bb2-8ee9-c83f6e71534c","block_type":"box","text":"Suitability. (All Funds)","page_number":124,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"1bd86295-32f9-46e5-87d7-26b0dff40d71","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":124,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"db2bd1ba-9484-4955-b58d-d81a45a2a8d5","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":124,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"e9dc3546-2e3a-4231-aa33-81ca9638e242","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":124,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"94c35a19-66f0-41cc-90bc-522263732637","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":124,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"7472733c-c016-4775-a2ab-c553807664a3","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":124,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"5fb250cf-a9ce-4911-b9d6-c8fbdbedb144","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":124,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"42ea85ee-12d5-4a5e-9ab3-e040a8fe1db5","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":124,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"8f9660be-c9d2-4a90-ac4b-c8e0f367bc87","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":124,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"6be581db-cc65-476f-8038-cd3c321c8fdc","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":124,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"fb9a34b4-492d-4526-8b08-0f62ea2df156","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":124,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"ba673509-b342-4d64-94de-bd104a3d90a4","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":124,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"5e97a7f1-8c9b-4eaf-b766-1ee3495d5276","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":124,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"50cbd255-bfff-48f9-97d5-ef7a06ceae27","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":124,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"2807704f-1e06-491b-a477-0042edf44648","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":124,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"6c8e1cc3-a5c1-4d4e-9f33-06b11ae45832","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":124,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"c1bd95f7-17a4-4d0d-8e23-436ac5898347","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":124,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"69a3c257-5129-48b2-9530-010a01bec89b","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":124,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"da7d521b-f0ae-4b50-bdd7-90b125d83b7a","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":124,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"3f96c90a-4c14-4d9c-a3b5-5df8f8fe93fe","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":124,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"1170f8c0-f015-4c95-a65c-76cee545dfc5","block_type":"box","text":"(","page_number":124,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"7be9365e-b299-4829-8131-20dffb3037ee","block_type":"box","text":"i.e.","page_number":124,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"c2939eda-1185-4f34-b395-cc38d4e02336","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":124,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"bdff568d-cfeb-465d-8111-270081e0d44c","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":124,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"c7506572-5744-4023-8742-bdc42396363e","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":124,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"1e9a0273-7d09-4078-b2c2-453a6d3b262d","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":124,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"23617c6b-b8cf-4d06-afbb-a4c806be3004","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":124,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"e821f7b9-4c44-48ae-9504-eae5c2813939","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":124,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"89baf8bc-8046-4714-b3f0-d7b24a63cf3a","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":124,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"b0ecd3de-287f-4e99-a229-c336dfb7b81f","block_type":"box","text":"regarded as the sole issuer.","page_number":124,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"523224ef-52c0-41d7-b885-10bff093e88e","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":124,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"6847e0f5-8ab6-4391-b089-20f00c2fdb4b","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":124,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"b22cd8fb-1c0f-49ee-b074-72132e7d30f5","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":124,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"c82b27aa-eef7-4449-b6f7-55ac9e938762","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":124,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"70dea365-8270-4b59-a2c3-4f218ee947cb","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":124,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"264d69b2-ac17-4737-bbf8-d88f377ec2c3","block_type":"box","text":"75% of its total assets.","page_number":124,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"004e7a77-ae20-42fd-a0a5-4e649ab2330b","block_type":"box","text":"II-81","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2755bf64-413c-48a7-8e26-bdc3bb49dea5","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77494cc3-1861-461c-873f-0484b919e769","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":125,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"d01bc6b7-7bb4-4cb2-8de7-4f684f29adf2","block_type":"box","text":"Directors and Officers","page_number":125,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"9defaa0c-6b6c-4268-8cb4-2772e7841861","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":125,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"a84ccef7-233c-4f4a-99d5-bc6f2e45c096","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":125,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"16d526d6-d698-461e-b8e8-f7d6f575e494","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":125,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"3d5337a8-28ce-496f-832a-17eeab3497a9","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":125,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"a9b6a0ae-d90e-49f5-9444-9321716a1f6d","block_type":"box","text":"Management Arrangements","page_number":125,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"9bebe85e-b012-4c23-9248-8eb0ec9e7ef9","block_type":"box","text":"Management Services.","page_number":125,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"93fcd7a1-013b-4007-ba35-0bfc6996f0c1","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":125,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"56aeaf78-d5a2-4b45-8f99-844e6cb64db7","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":125,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"6d626cce-1e40-41d6-8960-ed76325d4754","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":125,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"57d663cb-5536-42d2-8ffc-f20771c9d164","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":125,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"0bb95744-e864-4c1a-95ff-c80134e0b59e","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":125,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"73aa8444-37a5-46c6-9100-7c4ea88195db","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":125,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"cfc38e06-0361-4650-9736-514bd38ca666","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":125,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"ade449f2-c8d6-4cca-bbcb-b43c470a0e54","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":125,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"14fd001a-c1e3-4811-86ae-40a4eacd058e","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":125,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"1df36350-f981-4752-a23a-3433ea51dfb8","block_type":"box","text":"Management Fee.","page_number":125,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"e2b0b465-894e-4508-82ab-51db014feedf","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":125,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"9efaae9b-347c-41c4-b563-9553ae2ad982","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":125,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"e3d76922-ecc5-493c-88ce-0f6f2b2ee335","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":125,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"d2073041-ed44-40f7-bdce-163b4684e42a","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":125,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"d20dad7e-c8cb-4604-a07c-a594970ed6f6","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":125,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"1d56b8b9-bf3c-4e2a-bd13-f7bc02810638","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":125,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"5003c444-da24-4df9-8d12-3a486faec570","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":125,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"880a1cd7-cb55-4e5e-9723-ba6e6609f91e","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":125,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"3899f269-b0f1-4631-91a7-b5a707acb2f3","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":125,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"1772f7b4-80da-42c7-82b3-b8402081eac5","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":125,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"f5f7cbe2-aada-41c6-8ecf-860dde740cc2","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":125,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"f0cf0bd2-9d37-4a8d-98f5-69267d105176","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":125,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"67873488-74c8-4d5c-8f73-61ca04f11701","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":125,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"9357394d-d94c-4f22-92c3-03bdb9bebc17","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":125,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"427a9994-e889-4de8-bfab-4033b644172f","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":125,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"b3073ff1-77c1-404d-8a84-83a150656202","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":125,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"056b3db7-c6c0-408c-83d8-096a3b16468f","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":125,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"b475cf18-1053-43f0-a097-347aa71be80f","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":125,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"ecd912aa-a81b-433a-af89-141989e26736","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":125,"box":{"x":69,"y":627,"width":794,"height":12}},{"id":"651c2e71-1bab-46b6-97d7-707e7a1bcaba","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional","page_number":125,"box":{"x":69,"y":642,"width":778,"height":12}},{"id":"47e71eb6-cfe3-42a8-aa59-f1535ed36b70","block_type":"box","text":"expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed","page_number":125,"box":{"x":69,"y":658,"width":839,"height":11}},{"id":"d5017e03-5b82-42ff-ba97-1f5d204704f6","block_type":"box","text":"by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See","page_number":125,"box":{"x":69,"y":673,"width":820,"height":11}},{"id":"882a9f52-e35d-48b5-93d9-34cf534d8eaa","block_type":"box","text":"“Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":125,"box":{"x":70,"y":688,"width":524,"height":11}},{"id":"860a83c8-013e-4f65-8547-3921cea8d50d","block_type":"box","text":"Sub-Advisory Fee.","page_number":125,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"70dc13bf-11b9-4bdd-927b-54f89d93b7da","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":125,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"f7dd7600-aae9-410e-a3f6-ae493afe2af0","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":125,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"c3a4be2b-72a5-43fd-82b9-35409b6bdbe7","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":125,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"793b7eee-b4f2-4464-832a-308a9ba07066","block_type":"box","text":"Organization of the Manager.","page_number":125,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"a2a34a35-3c7e-46f5-9e56-e5b484bb0933","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":125,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"ce544100-f295-4ef5-8dd8-2aba58e1e83a","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":125,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"892e15ae-07a4-4a0c-9e39-ac2530d8403e","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":125,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"be03b851-ec94-4f54-b3da-96dda052b0c4","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":125,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"6ba0c961-a60b-4ffd-b360-04c6c965c942","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":125,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"a38bd3ad-e830-4b81-9cd8-6e68b9e33597","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":125,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"2620c7c1-3b27-493f-878e-c7f1b14ca383","block_type":"box","text":"Duration and Termination.","page_number":125,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"25b61bd0-5bbf-4ff7-9877-10fc50ce3f6f","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":125,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"dde1cdb1-460f-46cb-8f34-24946651fae4","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":125,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"8ff3ad43-b2e3-4923-9d7c-0524f32f5859","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":125,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"8ab592b2-21eb-46e6-9785-f4d2020c9958","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":125,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"69b6e54e-d3af-4e74-b9ad-c7a30fb8bbc7","block_type":"box","text":"II-82","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d406402-7073-4dbc-b8f6-90848f527d7f","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"610dff35-1eca-44a2-9065-4d664754e7d6","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":126,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"1639f078-2fe1-481c-af13-ada861f6f0d6","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":126,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"2dd4fc29-bc49-4b1a-819b-e99d15ea747d","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":126,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"72b6931c-4767-4fba-ad28-652627c882b5","block_type":"box","text":"Other Service Arrangements","page_number":126,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"9be287c6-db03-4deb-b869-ca74cd10c7f6","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":126,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"c20f7b58-dc0e-4bd4-9d18-a6eadcb5d25f","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":126,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"35ade001-4da0-4ff6-8704-85abb1c047d5","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":126,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"d072eace-8555-45d0-bbc1-cf57bc048357","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":126,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6bb51451-0e34-4394-bc5c-0195dcbc947f","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":126,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"39d36448-2335-4499-ad27-553db544725e","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":126,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"74b6cc3f-e01e-435f-bd96-b60b534bc2fa","block_type":"box","text":"that Fund’s SAI.","page_number":126,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"b832b34e-208d-4437-a134-a73e9bc60bc2","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":126,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"86f69bdd-76b0-46c4-8134-55942ff00962","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":126,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"f68be2ad-9e63-4f96-82bd-3b6fe1e05830","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":126,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"f3ac1fe1-bbdf-4cb0-b86d-5ec4507d464b","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":126,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"169d08f4-5954-46f7-938f-4e4c272612dd","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":126,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"7b9d3ca0-b58e-4d88-8cf7-5332b2bc8e2c","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":126,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"ef382627-e98a-48b0-9928-d59e3f79ae00","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":126,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"4c109051-be87-422c-9e55-006a971df41a","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":126,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"f5d30718-bb19-48c1-9be8-dc39a1cc12ce","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":126,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"85c8140a-8d5c-4666-a29f-2abd04549594","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":126,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"b2fa16d9-1472-4a87-bdc3-acc2ef6bddf7","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":126,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"83223cd4-708c-480b-9a9b-a7169283e9f2","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":126,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"ee7762a7-238f-4839-83f6-0514477e65e5","block_type":"box","text":"shareholders of the Fund.","page_number":126,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"141964e3-0d20-4723-a314-ab99a1589074","block_type":"box","text":"Transfer Agency Services.","page_number":126,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"b33417ec-60fd-48b3-af1f-a1ad2bfc8551","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":126,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"b55504f0-5e43-4e72-9db4-cd317b3ba12e","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":126,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"39497df9-d489-49d1-a437-8ad82370f290","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":126,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"e2185411-fe80-47cc-90c5-4fd528c0cc58","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":126,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"073eab9a-2565-4999-96de-581df87c8ac1","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":126,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"9683364a-c762-4177-846b-05c1d65a6b7e","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":126,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"310866f4-8a71-4f80-bd97-6a8007dbda9e","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":126,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"6277eedd-05d0-46f0-bfd3-c4cde9627327","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":126,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"df8e9c4b-ea58-4a14-9f5e-fe9bb493eead","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":126,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"312fc3b3-e815-426d-8637-116574579589","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":126,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"7a1d1394-0624-4ed1-9bda-01942c773862","block_type":"box","text":"class on a recordkeeping system.","page_number":126,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"b78f6a0d-b7c2-4a4f-9809-d70190d10177","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":126,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"4d347441-9c08-4a46-8a23-6b2291a179a3","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":126,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"79ac29b3-b383-40ca-85fb-aff70b0ed15e","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":126,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"132512fa-70ae-4ed2-bf34-b9d3ca87542d","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":126,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"9fda0bdd-dc7a-4642-aa77-a0fa32a20f30","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":126,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"8a3ef9ba-0ea8-474e-a89b-f9c204dbd8a8","block_type":"box","text":"Custodian Services.","page_number":126,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"f0520518-01de-4128-b92d-01085fdb7e58","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":126,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"4425a5dc-4487-434d-8c02-7a23b121fc6e","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":126,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"d5ee5634-1216-4653-ae73-df03ebee967d","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":126,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"64d38c3f-decc-4be7-a34e-3666b18e2522","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":126,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"03be04c5-6fad-4753-bc05-bb766adf6629","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":126,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"a57ee58e-0338-44b7-8ff8-3403d884bd54","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":126,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"3ce8e966-6d49-4ff6-bc43-f9dea0db9d4d","block_type":"box","text":"cer tain assets.","page_number":126,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"3ac71e72-05af-43a1-af1b-26d1160d3ec5","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":126,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"570521da-a4c1-4280-92ff-2e227c4f3919","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":126,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"66ff1ef5-d39c-41f5-9a2e-c9e179f563da","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":126,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"8f486093-5e16-4f8d-ac30-535f6b726504","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":126,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"59cca6f6-7776-49c0-8689-9cc9c0b5c6e4","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":126,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"90b42ef1-17e6-4bc7-ac0d-9116b7d589c6","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":126,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"ea3ec7e8-d017-4426-acc6-9f35c1d08ab6","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":126,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"75f641a3-d0ba-458b-9ca0-a7175bca7f77","block_type":"box","text":"Fund.","page_number":126,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"0edd2f82-904d-43df-8e38-54838d2d4a63","block_type":"box","text":"II-83","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7cf4fcfe-1aa1-44f3-90c6-1848f1f481c5","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0810f201-4047-4da0-b8b5-79195826a0e3","block_type":"box","text":"Accounting Services.","page_number":127,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"2bbf03fe-efcb-43c2-b68d-98469135e5ba","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":127,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"0aef4d93-a432-4a89-99ba-33eab96f2615","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":127,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"2bb40d75-0b9a-4bb2-b8bd-dac8da543bbd","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":127,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"06e9cf22-6930-47fb-a083-56fcb14d6c0c","block_type":"box","text":"Master LLCs.","page_number":127,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"f7a38d7b-4310-477f-81ba-750ceefd00be","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":127,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"f42457e0-65dd-4143-8538-2508e9ffafbf","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":127,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"70ddc4f8-e72c-4098-b19b-a35eec9e342c","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":127,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"1bb19a3c-91ee-4f0f-8901-6c82e78929fa","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":127,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"711add4c-cab8-4917-b678-9127bfa97fd7","block_type":"box","text":"Distribution Expenses.","page_number":127,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"254a4191-5873-492d-8792-5e1caabb4075","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":127,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"5f1c8c4b-1f0c-4c74-a8f7-35690c50b8a9","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":131,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"5fbc75cf-5c4b-4c61-97f0-157d757d9558","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":131,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"34d60bb5-4341-4c90-ac69-2bc676421505","block_type":"box","text":"Contact Information.","page_number":131,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"7e8f9677-bff6-43b1-be27-fc0f9e73440c","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":131,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"455aedd7-8a96-4608-825c-ae2e8b3e3f5e","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":131,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"49d0af37-8435-4360-a25f-c238d0446f8a","block_type":"box","text":"Compensation.","page_number":131,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"ee66b154-2163-4be1-b43e-b4b4892d3633","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":131,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"5dff5e8d-735f-4b95-9e7b-ce9f03c3b971","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":131,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"b6c48f5d-6954-4846-9d91-ac6b3a71c132","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":132,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"299fefbb-29d7-4ec6-8bd0-284be642685e","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":132,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"eebbbce2-e7a3-40a9-98f2-bd9fa9fe97b0","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":132,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"92601fa3-1198-4990-a715-e6164e6a177a","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":132,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"9d2ae772-f506-4fed-b59c-09dd01a12cad","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":132,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"3ef7c817-04db-498c-99fb-f7dbccc04c44","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":132,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"045f14d1-9425-499b-82f2-ea86fc20ae7f","block_type":"box","text":"II-89","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73c7bc64-2a4c-4934-9c43-b918ea59b52e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9120d372-f243-4ffe-b9ef-23842333f268","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":133,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"2cf32f2f-c615-40ff-8f2d-e675c5a7b262","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":133,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"d445739d-a338-4f74-9c65-15774c2a1b75","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":133,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"90703ee6-56d6-467b-9513-2ee2c21a7a5b","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":133,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"15f3f9a2-4141-4a45-9f3c-f9c1dac2200f","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":133,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"349834a6-b11c-4729-9b48-2680d1973b0f","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":133,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"ec01e284-5b33-41c1-bd94-ab75d3cdf59f","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":133,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"e82ab7cd-05d9-4787-9fc4-5359c36fedf0","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":133,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"1334ce19-e221-4dbf-857b-13a93e3fbfc3","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":133,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"081f19c0-9969-43b7-9955-d31d617aa680","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":133,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"95f76b36-eaa5-4a96-9c1b-a046ddd16d47","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":133,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"48495409-a111-498b-98bd-3d43183e61c5","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":133,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"4eef3490-36a8-43dc-aa40-8b08cdbff896","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":133,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"1cb3b3a7-7012-42e5-a2fd-9cc5011bb73c","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":133,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"f78094ef-55ba-4587-aea0-f21b28219a2b","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":133,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"72de9e06-662a-4845-8033-13e819afd33a","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":133,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"756eafe4-1d83-442b-985d-cbdeca8e924b","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":133,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"8a008e49-5463-4006-bea6-1006537d3342","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":133,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"a9231562-f10b-4597-83a0-a80305231cc7","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":133,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"27a92456-4a3e-4ad3-82b4-d1b353b5ce80","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":133,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"e5cb9589-b214-4df0-b986-59f6fc5836cd","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":133,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"006b68ca-3bf1-4b46-bd5d-bbb3f9c34342","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":133,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"bf95ead2-4762-4bc5-b53b-b9241ff5e11d","block_type":"box","text":"Funds.","page_number":133,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"284ab76f-db12-4e1d-9023-ee351ec362a1","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":133,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"a8a7cf41-9a6f-492e-a786-7c27b9c377e1","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":133,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"f0831a3b-59e2-44f3-8a84-2d48f297e444","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":133,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"df055a1e-c42c-486d-8f78-885d755f316e","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":133,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"a9d90390-a2fa-488d-a454-feeecdfc97c4","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":133,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"48842fe7-d996-4db3-a426-026b7f990771","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":133,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"0f989d3c-b3ad-42d3-be03-5cb0da01c647","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":133,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"155fbcb0-3330-40dc-95ee-b08ca2a51d5d","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":133,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"87f5fd89-14bf-4ba5-a798-6e71b9cec3fd","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":133,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"ec5095e7-d512-4646-a24f-874188c44dd5","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":133,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"50fc60c4-4b6f-47f9-b273-436ebdecace3","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":133,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"ba3cdbc6-000a-4556-890c-bf2ea879eabe","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":133,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"9728b295-f3dd-4150-a39c-a038743ac5e6","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":133,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"04adef03-5275-4e67-8479-c71e637e6591","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":133,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"64d9da00-f15a-4516-a644-12d28b493dae","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":133,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"a4c3d233-4e20-4f63-99f5-7886da873063","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":133,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"9803dc67-e938-4251-a16f-60f273ea4ff1","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":133,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"8e295284-25ec-42aa-951a-9bc0893d6420","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":133,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"b60c22ce-e334-4b7b-ac68-4d83b7fcd5f2","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":133,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"b587fdbf-5ff9-4143-a451-28e717d01df2","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":133,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"32b436bf-47b2-46c9-a19a-5e8d1d907e42","block_type":"box","text":"case.","page_number":133,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"b2559af5-ea89-4ca6-b2c9-4fdeacec48eb","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":133,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"aec42168-eb9a-4bed-8732-9fbbf92b13d6","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":133,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"f9e52407-52a5-4e0f-9f10-fc80643ce713","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":133,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"5262e7a5-f756-4f81-b21c-140137b510bf","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":133,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"cbb8f9aa-65d3-4e65-bf6e-5fbe0aed6845","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":133,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"e66347f2-f575-450b-aeeb-81d89e0aaddd","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":133,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"0c4db532-43ae-4809-92f5-d53c2958f7f3","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":133,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"dac82979-2b93-454a-a420-1bb43e9a71a1","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":133,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"24a00602-a55c-4e98-b551-09c2d48032ee","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":133,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"c9c0c254-dfe5-4f41-85fd-f897956068f1","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":133,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"5e5630e4-7d72-404d-9aad-46020f41f3ab","block_type":"box","text":"II-90","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ecb6a2b-9d6e-4a8c-b253-5a0b8c6651e8","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0339d63a-adc1-4fca-af33-f9fa8c6c4d82","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":134,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"2f291626-5ab2-4ab4-9b5e-77eb1b1b4a67","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":134,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"8f4d51e1-3fe0-4ac4-bac9-86bfd8827890","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"899ae305-f069-4402-bed1-4de22bc99dce","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":134,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"794cead9-ba31-48e0-b6bf-6f02f8b241a6","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":134,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"c854401c-f88c-4751-8ce4-b45a5769b7e4","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":134,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"35fed819-85a1-4b86-a28e-b0583e4f608f","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":134,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"e582d233-1f94-4e7c-8eb0-766ddfc07665","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":134,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"e727829a-b646-444c-9d56-ab65f272c796","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":134,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"f9d54964-9430-4a53-b3c3-b417f39c761c","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":134,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"c8dad29a-688b-4471-9854-c14f167a1bcf","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":134,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"7904e08f-68b3-4273-b903-98f3f3b7bd7d","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":134,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"d2560e24-9016-45cd-accc-61ee97d35296","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":134,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"adf906ff-43b9-418f-b08a-b357e11cf2b5","block_type":"box","text":"managing a Fund.","page_number":134,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"404ac0fd-bc2b-4259-80e2-db081cb02607","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":134,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"050c7d21-0771-4910-9020-8c727766234d","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":134,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"8879d6d8-7d22-4e27-a977-93968a529554","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":134,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"8fc314fb-2485-4001-a279-ef0dbfdbd3e8","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":134,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"abc8c3af-d152-42f8-ac21-bbe414faa129","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":134,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"5b82ecb2-fd08-4b89-b64e-f9bd057e78ee","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":134,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"f30aebcb-308a-4a63-891a-95809120889d","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":134,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"a6d1b1ca-9105-46ec-b82b-d92d1db8f427","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":134,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8c391887-bd54-4204-954d-2363f4ed4c36","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":134,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"2fda1939-1d20-4156-8f3f-1a7df15b0224","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":134,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"d2f6c75b-d850-47d9-8a0a-27a69ce4afb2","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":134,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"f9e0890f-762a-476a-ad87-a410b2089a90","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":134,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"697575ff-aa75-4275-bc3d-0cc1307337de","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":134,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"cc369099-dabb-45d1-9e07-48dc3ce7f0a0","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":134,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"d5857f12-b92a-4180-ac2d-3dfccf4a32a3","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":134,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"dd6089ff-b3d7-4792-8743-5a261ce4d287","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":134,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"509a83c0-d69f-440c-b6fa-003dca950500","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":134,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"00ccc2b7-8b58-4bc4-b561-b19c6fed1899","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":134,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"596a0418-5145-476b-bf0c-0c890c5c01b4","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":134,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"7f5e12f6-c17d-44ae-832a-e586a23edff0","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":134,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"e4cb7d95-0bd7-4b11-a795-f78b55c5d17c","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":134,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"48405433-aef0-423d-9413-f4a97da5e28d","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":134,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"59ad5d39-ec7a-4837-8a4a-4933730c8a36","block_type":"box","text":"under management for BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"ef5172a2-7267-408b-89ae-031b54542e1e","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":134,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"d4f26004-24a3-4b74-9c8f-9ef317f31317","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":134,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"5c815cde-42de-4c1c-94af-1dbbf302d00a","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":134,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"24b5c682-3d0a-4145-8db2-a546eadd2244","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":134,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"3926a5c0-3e7a-4b31-a85e-d0be6e3c82bd","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":134,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"b3a3f51d-22af-4f69-838d-f6aa1be87910","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":134,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"1e17d862-d3d5-4c91-9a6e-470f131c34f6","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":135,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"315f277c-c321-4d53-81f1-f701aa2e9c04","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":135,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"85cb24e5-284f-4b30-bd82-d3b1a1096eaa","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":135,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"d278edbd-60f5-4a87-8aad-32e9d982fe4a","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":135,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"44a6fd23-17ba-4e1e-b368-74618f6a69eb","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":135,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"42762652-9850-49f2-8bbd-e14e8a63a2d5","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":135,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"cd2bd676-ed53-48d6-96b5-aff08d6aa0aa","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":135,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"a90dc234-07ca-444c-9de6-cf14e6ddd01b","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":135,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"7ea6e017-fb64-4bea-b940-ebf7ad4889c3","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":135,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"58d4f23c-a08b-458c-b1e5-5f5e59ac5175","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":135,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d2a8ff57-954f-4156-b169-c0ccd74c05ac","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":135,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"623ce00e-851d-42d3-a022-fc2b3bb3c3f1","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":135,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"43e5f93c-6c09-401c-9375-e8eb681de1de","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":135,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"bd737d81-f151-4cd2-bbef-49ff289f4f08","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":135,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"cc3f82a9-21ec-4941-a4f0-14cdc2ce211b","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":135,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"e87e283e-8bd0-4f5b-9936-8b645a190557","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":135,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"09c1f46f-36e7-4fb3-b7bd-339b0a7ad75a","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":135,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"ae3c6b74-8804-494a-9628-c537dcc2fa35","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":135,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"e488ecec-13ee-4b02-9491-64e9d7199beb","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":135,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"8dbe221e-0d6d-469e-917a-57ba914dc08c","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":135,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"2fb9b204-d19e-453b-b5c3-4b5237df5659","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":135,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"cab6428e-a04a-47cf-ba37-0f6cf613ce9b","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":135,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"5413a273-f539-4fe1-9851-8e7e700c2b43","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":135,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"f6a77ca1-c9c3-4d25-8c5f-9e666a8cc970","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":135,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"06949ba6-cdca-46c2-8512-7e13c0335ca7","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":135,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"ca63dee5-c32e-4e7b-92c8-3e99bc7e56c6","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":135,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"12f6e820-11d6-48af-87e0-56c8a3dd7619","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":135,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"00d48916-e02b-40bd-82f0-72a17e79420a","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":135,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"608883f9-34f4-469d-b689-408fff201cbf","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":135,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"31b0b7f0-4425-40d7-9ed2-ebad070e4065","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":135,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"b27510f4-ee5f-4508-8441-557c7bd9bd80","block_type":"box","text":"regulation.","page_number":135,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"d6332096-e61f-4b61-829b-6832a8b72863","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":135,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"c17cf3f0-dd1b-43d2-b73f-9a1be823b347","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":135,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"3de7afda-fec2-42ef-950f-0db7c8b38f0d","block_type":"box","text":"various program limits (","page_number":135,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"4328845f-6b19-4d34-962d-9f72baf4bb8a","block_type":"box","text":"i.e.","page_number":135,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"56de914b-761f-463f-a1e4-b48e153caabd","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":135,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"ba2da8d2-9655-462a-a467-c5443698cd0a","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":135,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"a6895e2a-0f7d-4c96-bf01-7ef51151e30f","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":135,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"0d350e67-3b5f-449d-a141-81d0064aa6b4","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":135,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"fa8c183d-ca66-425e-a214-9a503bd969c4","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":135,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"b4199245-5610-402a-9000-52cca6da28bc","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":135,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"93257fd7-e9ed-4736-9154-b6d44303da44","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":135,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"8db0e713-c9b2-4290-8d80-a990a332b83b","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":135,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"b201ff06-537e-4827-8bc6-3daad0066140","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":135,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"ecb51dd6-bd84-4fbc-99cd-b3374c7b5886","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":135,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"fd0ff4b8-e433-4dc1-b942-1b4d540104da","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":135,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"96dea5b2-6dcf-414a-a6bd-faaf379632e1","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":135,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"03313a60-6cba-4421-87c9-399da267071c","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":135,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"e2026ee6-6853-4db7-97f6-61e84d03de31","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":135,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"8bfd5ec3-6a47-424d-a546-e72f5591560b","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":135,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"2fd9e923-cfa6-46bf-a8ed-1c02db1077c9","block_type":"box","text":"II-92","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63fa2f5d-eb6f-407e-b600-ac4edd8436aa","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"207798c1-5dc8-46d6-9a8a-898b8aae3388","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":136,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"78bc2ab7-a877-4689-a2a2-628a6e3363a9","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":136,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"73b44404-9bff-4be0-8840-20f11aab9119","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":136,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"f53bdde3-eb88-4a96-bd2b-9d3f57b607df","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":136,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"d91de557-4f4a-4d26-bf73-17ae84715a42","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":136,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"66f821b3-0792-4b46-81ee-92aa8a8b2fa6","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":136,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"a03fe468-a74c-417c-b3e4-6b0127e0fdd7","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":136,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"d42276e9-650d-4b2d-bc56-edd5e369abfe","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":136,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"7fad618f-ea36-4746-96c1-441766f28bc5","block_type":"box","text":"than through client commissions.","page_number":136,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"e2684b82-a9c5-482f-b92a-cca9871afc25","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":136,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"d7e0ace0-aad2-4032-b12f-14f76daae00e","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":136,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"f751dae0-a15a-4061-9050-5229c4680b21","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":136,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"14f7758c-50a0-452c-8f69-d21f09bfb380","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":136,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"7d50dd51-0e90-48c7-bdbf-257e8c8080ec","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":136,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"4a8730b8-2eb9-4c1d-802e-8c89e1a6dd0e","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":136,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"980d0164-80ee-484c-b8d9-67d33119fcf7","block_type":"box","text":"research-oriented software and other services and products.","page_number":136,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"18804eba-0e48-44cf-9d2d-04f2ad837973","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":136,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"4bba6f35-0588-4a88-bf9d-102f39735ff1","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":136,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"baebfce0-2d27-445d-96ca-5966cff2e59d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":136,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"948f03bf-3b62-4aea-9ee1-bbcbd0ada547","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":136,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d24d0455-a3a4-4ffe-84ff-622e965d589e","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":136,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"493a8d63-e5ea-465e-b987-2edf10d455a6","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":136,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"191aeafa-0e8e-43e3-bb1e-ee8994a089c0","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":136,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"60d41916-fb89-4c1e-a45f-7d16fac61aa2","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":136,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"cb5d8636-d1b9-4020-9d37-28b91c21fdc3","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":136,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"418223b2-ea51-4dd2-8ab1-fb8a55965eb7","block_type":"box","text":"and services itself.","page_number":136,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"6c5ad505-40c5-423b-af7b-b95f358b3291","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":136,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"c0111ef8-9172-487c-bcfe-578ce7f907ec","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":136,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"724033eb-024c-41ef-8915-1a763b29ef67","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":136,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"0c90246e-3eb2-4e84-83a8-8c95195325ea","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":136,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"bf24914a-a116-45f8-9d2a-bff0f19afc8f","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":136,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"384e281e-a73f-454d-952c-c701ca3d1e2b","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":136,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"3c493327-5772-4197-9aa8-69972d58c6e8","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":136,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"6fe905c1-e093-42e3-bf44-c4b0e07e39a7","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":136,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"88c70d11-e301-48a7-b449-c0795b99f7b1","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":136,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"81740cef-da2e-48aa-9beb-602f275e7c35","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":136,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"9cdd20c9-cfb2-469d-8366-b05cabc895fb","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":136,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"39cb8609-0411-4b97-8d39-60e16fc76026","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":136,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"04a7c09a-9a0f-44c3-8ed3-765c08259d8c","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":136,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"f1d6ad09-9bf3-4b2e-863e-03bea1e350d3","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":136,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"40335dda-e50e-4567-9676-6c0415b7dd86","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":136,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"9c3c21e5-7544-4f05-93ed-275dd45bc010","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":136,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"f5e0bbc0-cb0d-485e-9658-233a5688c0ca","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":136,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"fb11cb79-6f08-4e6b-bef2-ceeeacb3f28e","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":136,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"e3db9e99-3441-4683-8dde-6bb52b52e538","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":136,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"39e914f3-7879-45b7-b5d2-367238c0a246","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":136,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"522db0ab-abe3-49b7-a439-226dc84ba71f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":136,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"885d68dd-40dd-4929-b1f7-84d0ef7ec848","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":136,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"48736475-294f-422e-b704-8c1ed94a94b9","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":136,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"4c8326f9-7b81-4675-a6ef-49cf4dfe6ff3","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":136,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"5c69993f-41ce-463a-9942-90586647bae6","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":136,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"76817cbe-5d2b-4b98-a0c2-ee8e1fb859e3","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":136,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"ef29f560-85b1-43a9-a9b8-cd95535068b1","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":136,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"fa4962b2-3958-4782-8919-1d823b536b1e","block_type":"box","text":"II-93","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4891b82-475b-4505-a0e7-cf08e05edc3e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4995cfc1-d63d-48f3-b140-7cc001cd1220","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":137,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"26a80441-8067-4d3f-ae35-53be6c53193f","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":137,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"7727b716-39a5-4924-8b90-bc541720c87e","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":137,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"ab253f8d-2b2c-4ae3-a7e0-a91559c22a1f","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":137,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"ce50ac46-775a-4694-93a4-5eac9778d977","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":137,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"70eab3c0-be61-4bee-8a02-33add6554c46","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":137,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"20355b90-fa41-4d5f-a066-f987e658f4a7","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":137,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"5f71c555-1115-4e8a-bed7-f08fc296cd3c","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":137,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"15db70f5-3e78-4b9e-8e44-c5ea0ce8f113","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":137,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"fcd44282-3c34-4bd5-a8ba-5fd1fc345c3b","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":137,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"826430e7-4497-4e97-92d6-2a7200b34762","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":137,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"7d969550-d0d4-4e8a-a1b9-b5c5f4e278a6","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":137,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"73f7bc00-5ae9-4e71-98c7-817439a799b2","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":137,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"37ed806b-8670-4336-b8b4-fb360b7aace2","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":137,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"3fc9bf71-a2eb-4d7e-b675-dea70034e765","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":137,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"1dcee804-06d2-486b-9318-906c5d3569d3","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":137,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"f89c07d3-d802-497f-a819-055876cf380c","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":137,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"255725c0-2412-4f02-99bf-c10ed24b4335","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":137,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"68095855-5b2f-4da3-922f-7c8f7921c9c6","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":137,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"a9289684-e973-4614-93aa-7c65a2f2b453","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":137,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"e8ce089e-d978-4c6d-ad32-3f949157b724","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":137,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"66a3d191-caca-4a38-abf2-fd45f1b6c6ad","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":137,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"df84bf16-12c2-4670-9755-a57a3a283a43","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":137,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"faaa6b2c-ab98-48fa-92aa-f5720ec0c815","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":137,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"0f8f2a71-9e21-4671-a12e-a0e0aea76eed","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":137,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"efd91288-b168-4dcc-b091-b9439bc9ea52","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":137,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"454f9c04-aab0-4d36-a52a-f4870134fc51","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":137,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"2c40dc0a-607e-4b76-b85d-da5c9a180ab8","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":137,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"70ef407b-350a-4b38-bbc5-ac40ec8ffa81","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":137,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"436439e2-220d-4ed7-9c92-c9b07ee14e53","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":137,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"945b6527-2d4a-4f71-9fa1-1c6b99684604","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":137,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"361d1a8c-ecfa-4d0f-bac4-ef2428d29017","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":137,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"0a4ebf58-57f8-4b11-90fa-47d44f74af36","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":137,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"bd69205b-4f4e-4551-ace3-75478e786cdf","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":137,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"2f7c1c38-505c-43ed-af55-0245df6b7d74","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":137,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"7d8239cf-280d-4154-998b-c2dbf06aec51","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":137,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"785e6747-98bb-48a5-a5d9-7f0a2b9a0114","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":137,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"6945791c-cc0a-4bd6-9637-d7ba4e656e71","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":137,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"0464fafe-c366-409c-a2ef-f111fb2f9a3f","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":137,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"1230583d-76c7-4588-a6c2-2946fc8d1536","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":137,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"2c9d4b71-97a9-48ca-85ff-d4599a97573d","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":137,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"e2056e9b-d731-42d7-8503-5bde617c8a6a","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":137,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"7ce29e40-58eb-425b-92d2-8b3940edafff","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":137,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"9d1be438-7bf9-42c8-8690-b48c4dcf3025","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":137,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ea2b399c-43aa-4a4e-9aa9-cf2285cf32e8","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":137,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"7101283f-988f-4a63-a851-127b82aa473a","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":137,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"0be2d024-1d3a-48ca-8bb1-0cb0bc6587ff","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":137,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"d0a7b316-9f37-4893-9a6b-786375ee2bb9","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":137,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"36a84593-0304-4e87-9aae-7275d8ce3432","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":137,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"b2db14a2-0bf0-4db0-b137-ca2b07d158cb","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":137,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"ad3d16e1-51c7-4b18-b95a-34f7ce15bc90","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":137,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"10984bf8-d83b-4bb2-849f-602d205d054e","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. 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As a result of","page_number":138,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2258dc69-dacc-4ef9-83c4-2414d93584ee","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":138,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"b18ca8e3-3002-43a0-8b97-d23b3b3ebee7","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":138,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"1dcc67d7-b3e2-40b1-9df7-26840ac6386f","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":138,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"4a433256-01f7-42e3-a925-72bc0b24c875","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":138,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"7d9bb8f7-8a8c-43a5-9c62-0cff3cb885e6","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":138,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"9a21d030-f009-4f88-82a9-85a5a12dd450","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":138,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"a7d8ce30-e69f-4679-aa0c-bb4785ae2b8e","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":138,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"227373ab-7f4d-4b42-bf07-63d571461ae1","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":138,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"0f08cde6-e7b3-4294-adb6-b2f400ff6cec","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":138,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"d4fa866d-dc06-4780-b68f-1cdfdd97f72f","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":138,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"8abb152a-deb4-4faa-97e9-6f89302d0e59","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":138,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"8f9e751c-8ed6-4d50-8e77-52cc6c782a3c","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":138,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"051b37f4-3dd4-4313-b73d-fb185400cd71","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":138,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"c920eee7-00b8-4e61-863d-09fc4e94f4d8","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":138,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"ef12d950-07f4-4e7d-833d-e3259a5090a3","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":138,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"6958d587-65bb-40e9-b45a-449ee289dbdb","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":138,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"8f42d630-3989-489e-80a1-8b8849304bdb","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":138,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"d003b17e-c0f2-4ed2-b722-485b6484c794","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":138,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"d4db7dda-1901-4822-b24f-4f4aae4ffe5b","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":138,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"a97fc4b7-5f0f-4274-bc98-a26239f3c688","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":138,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"2283486b-6a81-4e0c-8a02-ba3738468d1a","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":138,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"51407e48-f559-44c2-962f-ad7743456706","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":138,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"44c1810e-f05c-4a25-86b3-4a519277f3e1","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":138,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"a200e11b-462c-42bc-879f-c44d410fd15c","block_type":"box","text":"public information about the company (","page_number":138,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"88f38e16-1b4d-42c5-a6be-8b888bfc72db","block_type":"box","text":"e.g.","page_number":138,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"05524657-6220-4f33-a41a-3cff0329232d","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":138,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"67d18f5f-4a2e-409b-9205-79e44328e720","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":138,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"04f3896d-e6b6-4c7a-b0b9-dc5c3d18a780","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":138,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"d3a9d589-9283-4792-86ab-cf0c82324d0f","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":138,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"e55c0070-29fc-4d69-af36-aaa2ae295978","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":138,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"7827fedd-9046-4cf9-933c-ef1d053bba3a","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":138,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"79348880-9eec-40d2-a82c-8e46bbfaf279","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":138,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"ed69f5c7-00aa-4174-bfca-425e2700f3a5","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":138,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"32825194-8722-48b8-b245-d34dfad96812","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":138,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"c82d5573-582a-4254-a198-fa3316d840bb","block_type":"box","text":"of the issuer.","page_number":138,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"96b9edda-87dd-4415-a43c-5093a0a1d4da","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":138,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"31e8000d-e3bb-4d1a-8509-169f99c76776","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":138,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"eed1ca9b-b8fa-472b-9085-78fd29220e54","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":138,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"4a4b4165-b4a9-4601-b55a-e3e640b43d92","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":138,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"69b5556b-b6e7-4ed7-a0a6-749c36c57f8c","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":138,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"e39ab8b5-589e-4547-ad10-dae6f7fa727d","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":138,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"9dd4c69b-819a-49a0-844d-799aab79e755","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":138,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"cacc6727-bec4-444f-b015-2a059acd78b4","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":138,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"feb242df-13f4-47b7-a0b1-2fd762b262e4","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":138,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"f2614788-79f4-4961-aff7-168841bd403c","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":138,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"713e082e-56e3-46c7-aec1-0fb3d077f16b","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":138,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"277345d2-42f7-446a-9174-0dcd336b5703","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":138,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"1963f80a-c653-4045-aede-dbff5dce9a2b","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":138,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"70888251-1492-4662-8aab-d697832f27a8","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":138,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8b5856ef-cb1d-492a-8b0b-ae6d43a517c7","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":138,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"3e7b4f8d-dc94-43a3-b5f1-f94679cb3cd5","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":138,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"c8f3b358-2e4b-474b-99c9-2c7c56eeedf9","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":138,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"446c1732-2025-48ad-b9be-fb4548741df4","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":138,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"d564b2da-4755-4976-8e73-68e7fce5ec53","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":138,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"9af0c951-1602-4176-8623-080cff47c0f8","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":138,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"540b2a82-d03a-451c-a7b0-fc93a03264a7","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":138,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"1c144f49-baaa-4145-894e-d9e8abc86984","block_type":"box","text":"II-95","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8bc30f4-66f0-435f-9e31-e79ee9f8042b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"306f65b2-372b-4e1f-a67b-eb8fb177e875","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":139,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"2268f672-7b62-4f0f-8516-ea778db8de66","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":139,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"09dd7334-ce81-492e-a060-1eb0f95e368e","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":139,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b5a6109c-6852-4058-ab3e-2c0f2e53ffe7","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":139,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"87052e04-87b8-4075-855e-efb1cc7c19be","block_type":"box","text":"a barrier.","page_number":139,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"ce878740-858b-4c14-8805-5ffa58ece7a0","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":139,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"21295a9b-58ca-406f-8335-bb538e026209","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":139,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"f398610c-acb0-47a7-aad7-8ca1fb1be67a","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":139,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"12ed6778-7f5f-4506-b733-540ca5d6b9c0","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":139,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"e7ef5e00-897d-4e02-b0aa-7a16a1b8dbfe","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":139,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"8127c016-2468-4ea5-b889-d0c829af1f2b","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":139,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"c442f2bd-9774-4533-9c02-705044d248f2","block_type":"box","text":"that operate in cer tain industries (","page_number":139,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"547692b1-1296-4312-b0ac-5d1fceee0221","block_type":"box","text":"e.g.","page_number":139,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"66f9e891-d431-4a0b-a769-8004fc3ed555","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":139,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"b6a267fe-3414-4456-85ce-7aabc8cf1c78","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":139,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"8a5eef5f-bbed-40c9-b45c-faad49b3a054","block_type":"box","text":"e.g.","page_number":139,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"3116219d-93b6-410c-89fd-526596a4e91a","block_type":"box","text":", with mechanisms such as poison pills","page_number":139,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"77717fbb-ea31-44e3-9459-ccf091b7abd9","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":139,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"d64adb55-9622-4ffa-9525-913d3ccecdce","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":139,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"6b4e7369-5183-4684-b77f-d73a22c4d167","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":139,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"8fb2bb44-3a6f-45d7-b6cd-2258fb2c1bb9","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":139,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"1cf64c4c-c30d-4b14-a64c-858225a4ca9f","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":139,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"25c51054-913a-46dd-a363-2009bd3345cd","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":139,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"e798f049-0cad-46db-89a3-203900d3eec1","block_type":"box","text":"seek to make indirect investments (","page_number":139,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"77fceb93-e13c-4d53-9bed-dc65d6628672","block_type":"box","text":"e.g.","page_number":139,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"bb13a217-1502-4196-97f3-7bfefcde6d09","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":139,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"551c2957-b62d-4a55-bb0e-cda490fe1361","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":139,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"e0fd7b2c-2925-47c1-9c70-82760b29cdaa","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":139,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"e84790ae-292b-4d94-9a22-fb4025b0b77d","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":139,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"2b8c71cf-491a-45a7-bb95-f9abf1b46e9e","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":139,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"ab485e4e-566f-4b14-a348-0094287f44ed","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":139,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"1a70d534-f511-4a6c-8811-a5c4cf97e47e","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":139,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"3ee11012-6a92-4327-8cb6-2b50c7a7b74c","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":139,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"2cb3d97c-9caa-4921-a698-6605f828040c","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":139,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"37055277-020c-4a26-9067-a06486980344","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":139,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"a4cf59bb-a878-423b-9d33-2cca756d1f58","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":139,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"be7bc54b-cee4-4cb4-a88a-8477d078082a","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":139,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"8cdb8eb8-92c8-41f4-b473-ac539bd44cda","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":139,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"89326e6c-d508-4675-b40e-da1b9fd36a7a","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":139,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"db9b38c6-04e0-4863-bb2b-f9cfc58ba2db","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":139,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"738fd5f0-7458-402d-91b3-4837f17aad21","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":139,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"603dd51a-7a83-4e2f-82af-44e6f9b9ee85","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":139,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"7a86fcc1-d10f-45a5-9cb4-457daeb05f0e","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":139,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"0bd7061a-05c8-4c1e-b81c-574e5b653ac8","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":139,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"48254682-ebcd-4467-9863-e962195b4cae","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":139,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"bdb62e34-f0a2-4b0e-bf9d-86f6b1feffdf","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":139,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"a29feb86-a403-4ea0-8fea-d647283fccbf","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":139,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"4938563c-91ad-4b85-9d14-ee72c4848beb","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":139,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"cfedae4c-2ae4-413d-b058-6dff531366c3","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":139,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"b2d491a3-8127-4f87-8937-5742d84d05a3","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":139,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"20c08081-98b4-45ff-96c8-881fe341bfbf","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":139,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"fadef5e3-e173-462d-b7b4-46dd5e087b70","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":139,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"fb67137e-c6d0-4d39-9600-a6fa0c361076","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":139,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"e50bb4ff-8973-4134-9f99-a84334f59ad7","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":139,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"4f5830e6-9d36-4652-b1c2-424f05ee5080","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":139,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"e55242fb-178d-4532-b13e-6e0a51e52f90","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":139,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"582482a1-01fc-45d0-af2a-4f2541466456","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":139,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"287b25b2-e434-44ea-97c9-410f6ffa3638","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":139,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"7ad7b5bf-e467-4f67-92ee-fc0665a14181","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":139,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"83d089bf-e348-463d-850b-37d857a92f8c","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":139,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"205ae8e6-0d96-4d2a-9d7d-a678601fc2cb","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":139,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"3061602a-a7f0-4b9e-94fe-c0ecab84d8a6","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":139,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"0bb51562-b42b-4c8c-ba1a-f42b71bc06c3","block_type":"box","text":"II-96","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1815d4b2-87ee-422e-9b0b-bdf4f2cbcc0c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69c8c1d5-5ded-40fa-8fa7-003e5347001b","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":140,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"12cebb55-de6e-4ec8-8f6c-bcda7e2af6d2","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":140,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"7bf36e2a-b7d3-409e-84b4-ab75f6405e54","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":140,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"b1693346-fc64-4825-9a27-f099838bec11","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":140,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"ba271020-5b13-4aa2-8cb8-f9f953ce8d69","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":140,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"4eafef08-fef9-462d-9255-e657562b25c5","block_type":"box","text":"strategy with respect to such security or asset.","page_number":140,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"fb04c35f-4814-4eb5-a89a-db560c1f9a60","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":140,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"3ad8f36b-010b-4135-873c-268169f653df","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":140,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"7bfebec1-1693-461f-ab0c-44301a6f48ae","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":140,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"78a00223-b05d-4428-8f2d-92e8c7b1c397","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":140,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"3536274e-759d-4683-ab0c-a8e6b92ecbd7","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":140,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"2b6e4e8c-c8c9-43e3-9eed-1f5aebe245b7","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":140,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"0a41e44b-8d1a-48ba-9a71-3695f4f03b72","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":140,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"daa3a0aa-70fb-4fc4-87af-745bc16a77e1","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":140,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"7116a3a5-571d-470e-8f55-c52529cb9c87","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":140,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"e0acb4b3-35bf-405a-ab4b-4b8bd3140e1f","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":140,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"39d19628-c8b2-44be-a2fd-45ace2d79641","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":140,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"e0f3c531-238c-480b-9b81-653509384920","block_type":"box","text":"e.g.","page_number":140,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"7dd8e995-04f5-49ee-ba55-223ec9849ae6","block_type":"box","text":", custodians,","page_number":140,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"58ed5e9b-b5c6-4e8e-be8b-a54bf9335375","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":140,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"227a0210-1258-47a4-bf4b-3a4975da86b4","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":140,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"23c430bf-4728-4603-bd4a-3464edada79d","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":140,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"16bcd897-af38-4e72-a4f4-91df521905ce","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":140,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"7dbfbcac-88a1-4ae3-aa2c-9b94e6e0abe6","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":140,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"61b88d6d-3e95-4f9b-8e79-8b43dbe41ca9","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":140,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"952e9396-1fbe-4d34-9a63-b2c7595d1d04","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":140,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"169dd189-0fef-4278-b949-bda9969cd3bb","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":140,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"7fc12bf4-f464-4f46-b4a9-f3da616b5727","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":140,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"30c58e19-2268-4548-8d63-70a55679b62b","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":140,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"dc6e28e2-b7d0-458f-a1b6-f9ada0fa0065","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":140,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"52f6ad47-ac52-408a-b81a-c4a9eadddfe7","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":140,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"4216bb33-b473-4955-a4f4-cafeea356b22","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":140,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"1e4d8dcb-926f-47f4-a60b-216de9dea094","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":140,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"a4a1b7e4-a73a-4045-a09b-0c2a1735a497","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":140,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"b1790179-9bac-4302-a4e6-7684c3e335bc","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":140,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"2026d742-27ca-4b15-bd21-3dc80088829c","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":140,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"d863435d-26a9-4c60-a8f4-937f07f0bde9","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":140,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"a4747d03-88fb-4669-ad2c-9928b4785da8","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":140,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"fbe27e17-4bbe-4ad8-8f3b-33971c78e158","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":140,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"5e773e65-462b-41e9-b5e5-8e254fa6fc25","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":140,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"a240cffe-9092-467b-9063-f79f28ad576c","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":140,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"82ba9f4a-5e71-43bd-a6d8-df1550fdb283","block_type":"box","text":"provider.","page_number":140,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"29e5e7a0-922c-46e5-add7-d267eaab4b38","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":140,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"5e17875a-ec79-423f-910f-be0cca07cbd4","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":140,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"11a69360-f33a-4a6e-9384-846ddb012bd7","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":140,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"1b434cbf-c9a9-4fef-87c9-9835abdae258","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":140,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"973750d4-0aac-45b3-834e-590710fb372a","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":140,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"d9f288fe-923b-4e0b-8b05-a64d568788b6","block_type":"box","text":"PURCHASE OF SHARES","page_number":140,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"9576f13f-ae86-4b5a-bd8f-6bb815cec16d","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":140,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"4c93485e-66ac-444c-8ab0-8927b2968671","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":140,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"a65e4346-7425-4205-902d-e8b4ea108f49","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":140,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"3462f642-b785-4776-bc4e-12d37b993cff","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":140,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"8957bc86-824f-4dfe-bb57-6b5c45486a22","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":140,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"14284388-e20b-4203-970e-2db1bb357b60","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":140,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"76dbac2f-c959-4d3f-a3aa-d4a54ea7fbf8","block_type":"box","text":"II-97","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75a47812-48c1-4e1c-9bd9-79f5e90e0cfa","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdf916ed-5180-47eb-835e-098b405e72c9","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":141,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"689c0afa-7d3b-4a77-a771-4192a93ee807","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":141,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"35b1eac0-12d8-4e43-a504-72b3d1950303","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":141,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"e77fbe53-65fa-4133-875b-edabd1828c20","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":141,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"5d4297de-5048-4d8b-b485-7187738e1cea","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":141,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"b652490f-93af-47db-9926-d72f3480eade","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":141,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"da4de813-f821-4958-8631-062f354434e4","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":141,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"d5500011-044a-4769-a494-e2d8867bffd7","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":141,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"7fcf0552-d55b-403a-80db-0451367f600e","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":141,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"e87b354e-4b30-461d-a7f5-871e10559512","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":141,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"1775564c-419b-4052-a71c-0c95ceb81a4c","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":141,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a8f4d885-c372-4523-ac45-6efe1d9ce534","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":141,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"f1392ff2-297c-4e1d-abcf-83463df7cd42","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":141,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"69110375-0e4b-4a43-aab1-9d78724b4b8d","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":141,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"605ca78b-e347-4129-ab57-4ee720596da0","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":141,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"7a86bdcf-9843-447b-88e5-d504ed72736c","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":141,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"2dedf89d-af78-44ad-bd18-b929ea209fe9","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":141,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"de9048dd-e067-4e34-90c2-5ea1e46c0f14","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":141,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"9d876db9-673e-44b6-827a-24d2f5a10107","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":141,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"1a937daa-d5a0-4901-ac77-f6bf1909efa8","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":141,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"ca2843bd-2aee-4a8e-b756-9fb9e83e43eb","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":141,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"6f1495a6-9fcd-427f-9a4c-b8e4babcd044","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":141,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"9fb5b2a2-9d51-4e6a-be59-7c23d14eb440","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":141,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"c05abcd5-e5f1-4cbd-be35-fb94d9179c30","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":141,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"9ec55c98-a678-4aac-a00b-2c2e1bb65c33","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":141,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"1d40f6ca-9920-4844-888e-cc1408c00a67","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":141,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"a4ae37a8-977d-4186-a0be-38803b3d4fab","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":141,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"290cebde-f4c0-42ba-a75c-bb7376895e18","block_type":"box","text":"investment is $25.","page_number":141,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"bf86c28f-8250-4492-9967-25c422b1de4a","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":141,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"ca3c2ba6-0d8f-48e4-b09f-7b2d04a1c689","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":141,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"93486697-5aa5-465c-9cb0-97cd433b1b3f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":141,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"f5553e2b-ac53-4f0a-ae6d-56fdcac8a14f","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":141,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"de0a90b4-c94e-498f-a465-ae3154469628","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":141,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"2acdd5e4-e617-43df-b920-c53af23adc31","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":141,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"06f6b0db-c241-47ba-8ad3-da266b1c5178","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":141,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"c10c4a35-5d2c-4e97-a870-1e0baef3feb5","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":141,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"018ca25a-7221-40e2-b880-9dec42cdf75e","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":141,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"9c33e290-ab81-4f2a-a5bd-b2069b4bbaa2","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":141,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"ccf64c76-079f-42a4-9d9b-24a1f000607d","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":141,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4ead1c29-3579-4107-b287-f79d6dca79c2","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":141,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"22d386a2-9a5a-4de7-a566-03f8906a63dd","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":141,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"fe3ba2db-27cb-4346-84a8-a49e365b59c2","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":141,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"01c50649-803d-4fb4-8959-664e23bce545","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":141,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"72ef4c2e-3474-4b05-88d8-b0100c3f5b8d","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":141,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"57e36bf0-4fe2-4560-a61d-4d5c54795e30","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":141,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"04e7604a-badd-419d-8ccd-01b117bbbfaa","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":141,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"b01029df-3e50-43fe-adad-fcc04d92e7da","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":141,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"5ac6ac1f-4220-4520-92b2-77d2ee3d0f23","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":141,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"788e51f8-c7e9-4396-b508-feeed3b313ad","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":141,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"c4ca3dda-5a75-43a8-b694-9fbab9889f22","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":141,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"2d097866-6161-4f7e-ac4b-1443a4f20856","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":141,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"5574cf71-43ec-419e-84b9-58fd94e8abe8","block_type":"box","text":"adviser.","page_number":141,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"472d06f4-d9b5-4e90-801b-a331026d5145","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":141,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"c9cc96c6-bb54-4c45-87ad-65ffae162bbd","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":141,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"4075dea5-226d-4fac-86d6-f9726b6f9617","block_type":"box","text":"II-98","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c35dc3d-3aaf-4873-95c8-9451491c4a6d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0417a81-eeb5-4824-a02c-e3f2de242edc","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":142,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"216286d9-b776-4a9c-b83f-b039e247de08","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":142,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"78fe0fa1-3a03-468f-9770-25967b854c75","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":142,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"92cff45f-b3c7-4677-b727-b4b1bc6bc38a","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":142,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"6b3e7335-a6e3-4537-8761-4d5cdfae12ab","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":142,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"07564dc7-f97a-487e-ac6f-1e0004489b77","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":142,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8a41a9e8-9411-40d5-9b9c-32518d981c6b","block_type":"box","text":"also be restricted from making additional investments.","page_number":142,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"f3a0fae9-b0db-4f2d-901a-29438fcf72cd","block_type":"box","text":"In-Kind Purchases","page_number":142,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"e3af8d3b-f63f-4ed1-acc0-5d0647db7e40","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":142,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"889611d1-54c3-4643-9e17-9ea2a657bbc0","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":142,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"9e59a524-4856-4df7-8763-34b9334dacc6","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":142,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"d0aba7fb-2f00-47b4-95f9-a54511ece407","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":142,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"6359057c-7e4b-4b8f-934f-75a4933b0ab4","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":142,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"89c91e5b-59d1-4c02-92e6-e5ae7c51e27d","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":142,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"44beaef1-9a58-47fd-9f6e-0faafb706857","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":142,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"e34e3da1-cdce-499f-9b7d-f95da2ea52cc","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":142,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"cd77d5cd-ed0a-4ce8-a246-dfcd5851daa0","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":142,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"313380eb-261c-4184-a691-e4c849567eb8","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":142,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"44c690fc-3aec-44f3-8fd0-0fab1c46f830","block_type":"box","text":"has settled.","page_number":142,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"6edd55fc-84bb-4e9f-9d90-9c20c64a2e03","block_type":"box","text":"Institutional Shares","page_number":142,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"87c90394-4e16-4d0a-aa3d-3de8716c3291","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":142,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"1fc24522-3b38-4330-aa57-4f0cffde56f4","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":142,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"89f24d89-df0c-4beb-9ab0-a56e4330ff9a","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":142,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"3df6f7c2-b309-46a7-b4e6-78f2c2df6b54","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":142,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"ad73f9bc-cbc4-4064-acc8-1ccbd21639b7","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":142,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"a653560c-c029-4f00-b86d-59f1f0e86ad7","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":142,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"72b37310-10ad-491f-94b8-2fcec8b5f508","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":142,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"b696a966-5009-4a21-a7b5-e3011b367e60","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":142,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"d37cdb14-26f9-46b3-bc98-b9ce1ef9d620","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":142,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"64a9790a-c50b-40f7-a48b-07363c183f16","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":142,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"b7180c95-2cc9-46a0-a4b4-97d9b31cb609","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":142,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2b3ae978-eca6-48d9-8f56-a804660ad11c","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":142,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"70ae9d9d-63a8-449b-b724-b1e903373a78","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":142,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"4a7c9235-a47a-4cd1-9213-26e28d79a457","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":142,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"e2addbb8-c0ac-4177-b950-ad0a648631db","block_type":"box","text":"these fees and conditions.","page_number":142,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"8b1db80f-4e39-4c25-a962-f333f89f9888","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":142,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"a621ab79-fe73-4f2e-a9b0-325cf7fb6674","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":142,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"72b9a2c2-5878-4876-affb-91a7e96790c7","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":142,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"9beffcdf-80da-41df-bf5f-d803066dfa52","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":142,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"64945bc7-5a3e-4b17-aa28-56fde6ffd9c7","block_type":"box","text":"incurred by the Fund.","page_number":142,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"d724f30f-6bba-4462-a40a-6e88a534f3ad","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":142,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"6e063b45-811a-4f83-87c8-a6d9f30bfe48","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":142,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"aa524a86-95d4-40d4-bd07-49e28bfe1a22","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":142,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"a8685f5c-1871-41dc-9be4-bdd5800c6078","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":142,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"d12434a9-9f25-461e-bf7b-5408cb9502a5","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":142,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"b90baefe-e5f9-402d-bc8a-6ea74868685a","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":142,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"8d57c77b-75d6-4c14-b000-e8f6600b11ed","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":142,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"8a865942-301b-426b-bc0c-036c3e7c3c5a","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":142,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"2e369352-39a1-4eb1-b469-c22690503772","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":142,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"8be8c37c-795a-4ceb-9a68-692ebb27cfe4","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":142,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"6acbd795-404f-4977-bc5f-287c8e2492c3","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":142,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"a801056d-d399-4a8d-ac7f-9e40c4b0dd57","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":142,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"5fe4976f-535e-49f3-b28b-1a39730e9a6f","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":142,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"f4b1a5c9-4bdc-4f07-9e87-759bce67e79e","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":142,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"113e20d7-4c40-40c4-8c31-4692576ef8cf","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":142,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"5fd60a89-b03e-4417-af1c-16d9c1622533","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":142,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"0479d7e5-bd9c-426a-9266-32e93e633b67","block_type":"box","text":"II-99","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a15d06bc-0bd2-43ca-83bf-3b9ff1eab29c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdceeca6-6cba-41b3-b86f-8d47992b50fc","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":143,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"f2fa2ac6-e2d2-482f-a980-980ba941683f","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":143,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"ca589bc5-2da8-47f1-8438-409e4562639d","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":143,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"b7cd93e5-a562-4632-a6fe-1c5b1d9c5db1","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":143,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"7e5bf268-12dd-499e-9539-1cbbc3a51ee8","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":143,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"41708715-c146-44b0-bef7-6685a87babd9","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":143,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"cd380e0e-1c9e-4491-89bb-2c45da2d4ae9","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":143,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"2b529b37-1038-4ce2-9ea7-42e57f46fb80","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":143,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"46cb6829-359a-4739-bf39-cb8dd01102ff","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":143,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"9ed659f7-b898-4994-9bcc-ea21c3ca9e74","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":143,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"511cc574-abdb-45f9-97cb-a1028c01b670","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":143,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"7b3d8c1d-33f9-4227-a1c9-88519b4ce7e4","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":143,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"53124fa0-68db-4d10-a08d-4e1f6baf4365","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":143,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"6722a548-32a7-4d18-a3f3-4b843eaee0a5","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":143,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"beb23717-d3e0-4440-a32f-e7977a018d59","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":143,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"871591ed-a0fd-4a7b-ab4e-792a9a8746fb","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":143,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"0c5b0003-dd77-4761-a701-a0d05fab28e3","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":143,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"373a7129-7f87-46e8-97e6-fe56ba5f503a","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":143,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"54035782-493d-4219-8091-15c5871cfa18","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":143,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"20497ba2-dd8b-4894-b943-14aa1aa83326","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":143,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"64d2496a-216e-4ef9-b4f1-e724626a547b","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":143,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"05beb4b8-1762-4ad1-9824-a323cec68d63","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":143,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"b2a10b6c-a59e-491c-8bbc-f326298fcc27","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":143,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"945d6211-d30c-41d8-b2fe-f3975df30979","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":143,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"275f6b8e-66b9-489f-9a81-ce86333e1458","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":143,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"b59284df-75e9-4a1c-86d5-56a8022d4940","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":143,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"c4d0b212-9655-4b71-b04c-c97183957724","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":143,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"15a03a00-019d-4b21-9a02-e714b8cfefe3","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":143,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"b327b317-2b31-47a4-bbd8-12632ed64989","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":143,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"85b83a89-31b3-490a-86f1-3c8cb16b58d8","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":143,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"70361a8f-4991-40d4-838e-9774f4db3297","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":143,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"ad3e8c58-6c00-42c1-b1bf-adf1e9873fee","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":143,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"c5136e1b-72ff-41a3-951b-f1d98f7f25ef","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":143,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"6f62329c-06a5-426c-9f4f-67217550f515","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":143,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"06f8c1fb-4829-471e-b62d-b7c6bd0693c4","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":143,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"6ce1d3f5-3067-4e52-b7bc-4df6589a55e5","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":143,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"f37993e0-5111-4b79-8219-51b6116ef028","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":143,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"53048ca5-e0f3-4de9-9465-7395a9281bc9","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":143,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"edeb87d8-a826-4b57-8757-d851fe745cb7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"10ee8eee-421b-45a7-a277-c25ad855907e","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":143,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"556ea71e-6f9e-4a65-88c4-dc2407ad0b78","block_type":"box","text":"periods indicated.","page_number":143,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"6ec068d4-50b8-40d2-a3d6-78615491dcdb","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"8ea7b21a-919e-4981-8e0d-a644245e3ff7","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":143,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"2ebf5c32-b03c-467a-9ec1-7cce2af1ab06","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"e58acbb3-0d14-4f19-9b52-6808d3ad1fa9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"8c50bdff-5487-44c9-a749-0a88245d23de","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":143,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"8dd7bb30-38f6-4a1d-abc1-87e8edbd7fa4","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":143,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"ad8a2e3c-e8d0-4afe-a863-b8a166a9df21","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":143,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"9044314f-146a-4314-8eaa-5281c0ff4efb","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":143,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"a4c64041-e7f1-4bb6-8273-b04f14a8441a","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":143,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"d6f7d58b-c5c3-49ce-8ddd-2e91090883a5","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":143,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"b11d3045-ced4-4a73-9505-74ec0a274bd1","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"df1aa70c-ddbc-44c9-bb56-ee5512a71422","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":143,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"3500e491-f8ed-43b0-ac9e-b5fc9ebce3d8","block_type":"box","text":"II-100","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f0103ec-7d45-4858-87b7-da0aff7b1155","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e238024b-f6f0-4b78-a768-2c92fb6b66c5","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":144,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"a7f83492-0f94-4c8f-802f-c7a4c05a7547","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":144,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"62fbd956-6b93-4400-a81a-1bab061bea94","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":144,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"606c6ff7-33cd-4310-a4ce-b8ec154ab79e","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":144,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"bb92f0e7-7400-450e-aedb-ddb254c31972","block_type":"box","text":"Reduced Initial Sales Charges","page_number":144,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"d120852a-ddc4-48ae-94d8-f28feef73e65","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":144,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"a1360374-3afb-4703-93b8-118badef9042","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":144,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e1148b06-8514-42d4-b5e3-5818e0d022e5","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":144,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"0e9a0309-0911-480f-a34e-f8f8fd19fe72","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":144,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"2101bf7a-5852-4248-ba14-c3fd52ea5903","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":144,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"616df285-c363-4c13-8711-1b5db12c9a9d","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":144,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"706df475-bf63-4eba-baf6-ebf39d89a9f7","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":144,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"2a661ab8-5102-4aa4-b2aa-1735464a3398","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"0880d61a-069a-46fd-ab4e-1344519cb699","block_type":"box","text":"Reinvested Dividends.","page_number":144,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"18b55bb7-3675-4664-9f9e-1c516a4d28ab","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":144,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"bb98dffc-91dc-4c75-8c03-7d613451adeb","block_type":"box","text":"reinvestment of dividends.","page_number":144,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"201c6e66-03e6-4f66-813d-1c9ac8d5233c","block_type":"box","text":"Right of Accumulation.","page_number":144,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"db42960f-898d-45de-bd85-ce4a0b16eb96","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":144,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"0ad54929-3093-4a6d-a841-8795c78595a1","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":144,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"2c2c1afe-543a-4881-b7e8-9ec332d391ed","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":144,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"e1e9eca4-3e12-46d1-ac66-aeced80a19b8","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":144,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"f26b3621-3abc-4e37-b603-ac2748feec40","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":144,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"378eaf7e-b253-423b-a7d7-da1b5c2143d0","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":144,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"e7553608-04c7-48da-93a8-8352c074fbc2","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":144,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"c4c1f1f2-5c67-4f50-b695-a591a90de28a","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":144,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"d0f5a24e-0a28-4804-9bc2-5fa89f08c34f","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":144,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"bfd36839-a9a4-4a59-ac36-9815f45353b2","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":144,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"c2d7f3d3-efaf-4cdd-8f5e-03db7bb1d403","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":144,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"199d278b-4060-4572-89fd-96b160ca480f","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":144,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"0d1bb8c2-a42f-46d9-85c8-7f5f2ca1049c","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":144,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"4c621f75-1c73-4fdd-b91a-76adb46c7fde","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":144,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"ac2265a7-3077-4dad-a057-378d5cfa7305","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":144,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"7e83b7fe-e4ce-4296-bc08-65e750369c8c","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":144,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"74a6eb6d-cf45-4f42-bba7-816df74307da","block_type":"box","text":"Letter of Intent.","page_number":144,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"fce91564-703a-461c-bcb1-31f8456b3877","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":144,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"22f33755-0b45-4ce8-8656-2d47a2769f23","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":144,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"5ed02959-f32b-4045-8178-7bcb13e7da85","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":144,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"69f7c540-6459-4c05-a79e-8b498b4f21b7","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":144,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"f52e2d7a-a37e-47db-8e2c-7f783811f694","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":144,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"22826666-e129-4286-af98-11303c76940f","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":144,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"8d9ede6d-9a4b-4f2f-9891-97fd5b15cea2","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":144,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"01c5fc65-33fa-4518-abf0-945e69702b9d","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":144,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"c7077d21-a71d-4975-add1-ade66bd1af2d","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":144,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"bc525a7d-9c6a-4625-acbc-5f39d895e1af","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":144,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"a2e7b216-a4f3-471d-a82a-f8c20eaae76a","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":144,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"9199f11f-557f-431a-a600-dbe00c6314f3","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":144,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"9db7f522-eee1-4d8c-8ac3-b33d0bac0e74","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":144,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"1bf6582b-1d86-4967-a353-d553f6c49bf9","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":144,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"8a33bace-cae9-4316-9971-2cd72baf0693","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":144,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"76a6c0b7-e3d2-4195-9459-79f2ec9e077d","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":144,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"64f06ff8-39a4-4509-a508-7697e78a5710","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":144,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"e8dcd3ad-a9e8-4d5b-8bf7-198819cd9ffe","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":144,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"cdd6e90d-5a3b-4e6c-84a3-78c842b22df0","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":144,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"90d95318-7e9f-443c-9729-b976b2ba8c1b","block_type":"box","text":"Placement Fees.","page_number":144,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"4a65ccf1-9b9d-472a-8a13-f67fee015335","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":144,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"ec731300-5ffb-4229-8b41-392cf8db9def","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":144,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"d69fb644-e26d-4126-b8d9-d00479f3cd0b","block_type":"box","text":"II-101","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9552c8a1-b4e3-4812-966c-dac6f116bfd9","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3cfb103-51b2-4640-800b-435efd305241","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":145,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"c38d276e-b521-4a99-bf36-9a43ef745a44","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"33afdb3b-6347-4a05-bb5e-599cf5af8dd3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"519646c3-5dd7-4b97-934e-9da88b6006fd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"5b9c9791-07b1-4efb-8664-73981f0322a9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"e6a6e4de-5723-4dcc-9056-676224ab6b08","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"1ec283df-97ab-47dd-bcec-1f2d05c7a859","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"b4551a5d-cb73-4795-8125-22ac6ec0d382","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":145,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"c328862e-8772-4540-acaf-12d67edb7b73","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":145,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"2cd44b72-c5f6-4b28-8997-558f8af20a19","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":145,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"980959c1-3b9c-4d09-b881-90d51c43893b","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"0a80af7b-b5e8-4d69-9acb-fa5d99943128","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"957c684e-0bce-4ba3-8ccd-8ee29b6136e6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"88c311d3-9cae-4faf-82a7-18c39b248faa","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"db39daa4-ea10-4a7d-9ed3-8e10a6cb208e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"8d95d326-1e8a-46f5-b34e-24d2da09bc96","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"b9d0f3a1-9e3f-4503-a380-c9c8a2b2be2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"2d92fcc2-3578-4433-a061-58ecfc14c317","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":145,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"8770175b-d437-4b6e-bc03-f7c8babbe637","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":145,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"598bed9e-e323-4b5f-a2a0-06b4f7a559c0","block_type":"box","text":"SM","page_number":145,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"563fb1c5-a692-4b64-88e7-1bb5c0abd183","block_type":"box","text":",","page_number":145,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"0197a0c8-bfb9-4d29-9a39-448724eb72ff","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":145,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"f9b396a9-67e7-45c8-933a-557e5c25ff66","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":145,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"60c6139c-e163-446f-a19b-77c0d327dc4f","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"4f601ea1-827e-4c9d-8cd1-a467538679fb","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"af406c35-3bec-4575-8e2e-e94d366497cd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"5fc6245c-25fb-4a9c-8900-70e43b4729f7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"af11ba08-af2c-487e-9d38-b6dd852c0e03","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"d75022c8-2421-45cf-ad1d-27e3d5d3be5a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"84b7c44c-a9fc-4814-93e3-43243a0d1d29","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"71350f00-0979-437d-b6e1-fcbb85499b1d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":145,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"5bb23655-856a-4b96-8ad9-73543896c70f","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"6cbea2fd-80eb-4bc3-a8f9-672544f29989","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"94cc9954-45ed-4d8b-95cd-7afd55800bcd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"5e8afcdd-5198-4f8e-b8ec-5866a1c499bd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"02029ffc-27b5-4468-a88d-1f06e5de5a49","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"293c9b61-3100-4d76-a13d-b0aa764fb781","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"a7d6e99d-e72c-4ae5-9b37-c6163ed9cf23","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"5af54e8a-d4ae-4e93-99d0-8b65839046f4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":145,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"7ede056f-d285-48b6-a271-2b18757e6cc2","block_type":"box","text":"may be up to the following amounts:","page_number":145,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"a9400a56-b3ac-4a78-9923-4fed787238e4","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"a0e70918-4f2c-4584-9160-1b7d5c0cbb6a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"e82034e3-e38f-4414-8794-1449f33e082c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"fa8e36a8-48ca-49c5-9350-3bc21c12ae21","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"05307042-1f3a-42c8-a4ff-55deabcea360","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"282bffc8-8878-4f36-93f7-3949acbbaed1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"91df8e51-8713-42b4-8e40-ffcd98d929f4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"1d71cb7d-82c2-42ad-b776-27ad441a5c0f","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"3533012f-f3a8-4e9e-94fc-27c3877bdcd9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"7d0755b8-ef61-4b26-9ad7-f49ea31fd069","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"4682c5e0-7e4b-477b-be2f-3e04d4d5a596","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"7e0ef2f5-91ff-4ddb-81a9-7c6d41c6aecd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"7474ee32-9e85-42e1-9846-22ba34a1784a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"d4f17c7f-60a0-4c2f-9b7a-8373666f9404","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":145,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"db25b29c-c9bf-41a3-bbd5-96576ef6e605","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":145,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"896f182a-29a7-471e-b328-921d94e09b90","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"226bb8bf-d26d-488c-a494-29affffeab52","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"42e1dbc1-a260-45e8-8878-024f4625061b","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"04815387-f877-4386-a141-f685c882a662","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"41a52ec5-9fad-4251-86c4-b759064a0be2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"1b3da2a2-363b-412e-807c-7aa4ec536266","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"c4a249a4-1ea5-4950-b8ae-c31be4e47ca8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"2ad8b181-2a67-44ab-8db4-43a55ea39c5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"707f63f7-0677-4212-8ab5-06cca95d0564","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"d95eb525-1368-4b3f-9f6a-ad63024c70e4","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":145,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"35ac1d6b-6df7-4b9d-89d6-f27e59a248a4","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"25b3ba05-447f-47a8-a575-7118a1b29c93","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1880a83d-4738-4187-b86b-e305e1725a77","block_type":"box","text":"II-102","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"269b2b51-487a-4cd7-8429-544a56921d4a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e7097b0-08c9-40ac-bceb-348624f6a9a8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"2fc66d40-4ae0-4fad-a919-eedf6e79ed8b","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":146,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"adfae335-0483-4d28-af0f-a3320d9a0d6e","block_type":"box","text":"the following amounts:","page_number":146,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"b8e69dc0-da8f-4b5f-a85a-a0fa2c653329","block_type":"box","text":"$100,000 and above . . . .","page_number":146,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"3c8b1c23-dc59-4c09-aa8b-5ebbfe845c5a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"5b11fdf5-4f55-4c10-9711-5a82b2d778ce","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"2302a98c-c7f9-490f-b056-70587e64f07c","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":146,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"49f7ef3f-455f-45e9-ae6c-378f9d489d8b","block_type":"box","text":"$250,000 and above . . . .","page_number":146,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"285d11fb-310e-4d93-a802-f81c56ade0b9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"4898f2da-a360-4aeb-99ad-9271329cbf0d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":146,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"975a4155-4ba4-419f-8c3c-eb0394024277","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":146,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"dba675ab-9037-42e4-a82a-ec9fc05766a9","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"a38c5683-bd2f-46d3-ae7d-86ce31ea9df3","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":146,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"413d15fa-64c3-4dcd-83bd-6ee81eacf975","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":146,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"b02701ef-461e-4331-9c8c-7bef7ce2bbc2","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"9cf32456-c695-4148-9d64-09570c79a38e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":146,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"4a648d1b-fb1a-4fd1-9541-18f3981d1117","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"90163f08-1381-449e-a879-f67558613162","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"b4696bfd-21cc-4f22-a116-7d8582003180","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"b78cfd5e-4842-40a1-b50d-bd24396fd757","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"27a7d27e-e5ce-444b-a28b-7d4e87f45aa1","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":146,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"c59843ad-1530-44f8-a0fb-1a1991a1fa5b","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":146,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"3d603579-8f84-4bad-9f30-e154609b4c8b","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":146,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"b1a144c3-d1d2-4aca-b2c9-07ce497c52ac","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"1ab24d69-7f80-40a8-8d27-714d5fdaa5b2","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"989b061a-cfa9-489a-95b8-df6a4d291bc7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":146,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"8cb165bb-a3d1-45b4-b1e4-5c806863cff2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"5d910402-bfe2-43d1-b377-0a261d8fc4ad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"6e3c3937-5e4c-472c-a37a-5ced02b07567","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"89db09e1-86e0-4b9b-9334-f316ad2c1ec9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"8e2f2258-b4b1-4a1a-8be4-b13dc41d62d2","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":146,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"950a675d-6aac-4e70-821f-b0a62a0c47ce","block_type":"box","text":"®","page_number":146,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"dabb864e-5e76-43e7-9e04-82de4a941b15","block_type":"box","text":"Index 2030 Fund, BlackRock 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Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":146,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"15b7f177-bd23-492f-a068-928bbeb28b5b","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":146,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"6eded024-9f74-400f-9e49-8e1a63ece537","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":146,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"b16025e4-78b4-4bbb-86e9-c8eb5df30813","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":146,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"66b5e491-2639-4002-97d8-2a5757e66a62","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":146,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"4696d659-ce15-4df7-b2fa-cbd7aa717681","block_type":"box","text":"$1 million).","page_number":146,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"3b698aaf-0e95-4740-a29e-47955f0308e1","block_type":"box","text":"Other.","page_number":146,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"de0ae5a8-4fc1-4f37-8bfe-a1162e0be5d2","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":146,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"356cfd63-7651-4777-83e7-a068b35b0fd4","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":146,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"cadcf7d7-2762-448b-b14a-661c535076f0","block_type":"box","text":"not include SEP IRAs, SIMPLE 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by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":146,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"76dec0a9-100f-426d-b643-2c9b1eec0bdb","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":146,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"0a9d368d-55ac-4712-bd89-ebc30fb74ac0","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":146,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"2b1b9f4d-8837-4c8c-ad9a-d180953926bb","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":146,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"dc03350e-96c7-4c54-847e-0b453ec6dad4","block_type":"box","text":"II-103","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"582bfb58-cf8f-4002-a0aa-92e5f9456491","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c97f5bc-0912-4f3d-acd3-b1e4aa9c42c5","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":147,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"e60339d2-b4ed-4c14-8ab9-888c141c7cc5","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":147,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"6f12170c-062a-4ff0-93a9-555f74f6418a","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":147,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"e523bb88-674a-4cad-a77c-13d5269c8b1c","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":147,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"90318eea-eed1-4f84-81f9-4d18c67579b4","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":147,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"2b32065d-820e-43dd-a349-ad02953a8143","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":147,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"3b4e2296-d817-42b0-bd6f-c8820111b8be","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":147,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"9c95f0ec-4a2e-4152-ac53-8e3bc36c694c","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":147,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"31374988-8a45-460f-8196-1c0f69f472a1","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":147,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"941cbc04-c38c-417a-93b3-b618dc8e64b9","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":147,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"027e1572-c860-4c85-beec-204bc0310b05","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":147,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"23a495a8-506c-4eea-b28a-6602f484c5d4","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":147,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"5a9f3686-87b0-449f-bcb7-c59e5dc6003c","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":147,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"4838b845-4c26-445b-9b7a-171517168cc5","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":147,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"142b2a9c-aa9b-4bde-815c-301e65d72dbf","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":147,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"1ce5ad84-ee31-4dcb-bf80-55012a9049fb","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":147,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"087e3842-ed9e-48c6-a86a-550e6f088980","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":147,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"a5797862-b37c-4a2e-8093-8a19546c028f","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":147,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"372c08b3-189d-4e53-8845-23dbde50afee","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":147,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"81d5a484-7136-4214-b605-f470346942f0","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":147,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"4e342dd4-debe-493d-8fa9-f7c693ac4d1f","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"f3760ba4-5c4c-4962-9c3b-2c669eb398dc","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":147,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"1d6ee415-7620-46ae-9bf2-b1fc4b366142","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":147,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"2f9e934e-282d-48f7-92d6-80f7095ffe1b","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":147,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"95a31036-2778-4ed2-a107-06af41f2db02","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":147,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"bda580be-7ec5-4aa2-82ba-7e49cd5a42f6","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":147,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"7a7e42eb-b280-498e-a1de-3a24d074ec90","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":147,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"07801efe-a9d1-412c-8fb2-5049da0182f2","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":147,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"d467f326-2438-4702-ba8a-958db346f7c6","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":147,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"c95ed92c-4e51-4a3f-b397-ad935f45c3a4","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":147,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"8bda3797-75ba-441f-82e9-faa42cc8f1b3","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":147,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"c65c06d1-06f4-43ea-a9ea-a0be66be9c0e","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":147,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"49828ae9-bc8e-4f4c-bc08-2c105dd32790","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":147,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"2a6cfb7d-f87d-4a7e-b563-d07dcc8c19ed","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":147,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"e3be5b6e-3e8c-4e31-9718-78d8163beb63","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":147,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"f5118121-4be5-4eee-89c1-988e621fad34","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":147,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"51463889-ec5a-4642-b844-fa8daef9e0bb","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":147,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"bc482c33-3f1c-4c0f-b102-64265261cdf4","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":147,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"b977e4ce-b53c-49d3-8bb9-78ce93bc4aaa","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":147,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"14c72eec-e6e5-47cd-a33f-96dc473e3561","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":147,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"16231179-5421-43b1-b423-21bea79ea50d","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":147,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"90e3a060-ca38-4bc4-96ea-9b6678d95960","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":147,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"dd6e5df9-c136-40b9-8e9b-bc77685dcb33","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":147,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"7dca78c1-51ae-4496-9b75-f2769a8b6909","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":147,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"2aa2ac8b-860d-4ded-a22a-5376ded640df","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":147,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"e1d73e29-89a4-4701-9234-a8368a3e8948","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":147,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"cf9edfe2-14f4-40e4-a369-6b130cbc27d4","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":147,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"4cd96f9d-60e7-46e8-8ff1-ba8777320101","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":147,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"73daa339-c14e-4f9e-a104-1191818be8bb","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":147,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"fcb709ea-3b9c-451b-a275-5851c92147a0","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":147,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"21bdd32e-824a-49cb-9513-d0513c4d3732","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":147,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"edac014f-f400-4ce2-bd26-2b1ff7a80056","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":147,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"c1804208-6675-463e-a08d-ba017afe8251","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":147,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"61059c58-71db-4398-9da0-a14968c457ba","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":147,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"17e7154c-891c-4884-9d9d-614006e42691","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":147,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"0d693811-999a-4e03-a776-6bfb77102752","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":147,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"53c51af8-ee6c-42a7-88b4-61ebe9a246b8","block_type":"box","text":"II-104","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8416f77a-e167-472f-b1d0-c779c3898ecc","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02d793b0-b007-4ee1-bea3-6d4ce2a71e55","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":148,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"91129958-7e18-47e2-9356-d29f0f1bbe8b","block_type":"box","text":"the absolute discretion of a Fund.","page_number":148,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"84335aa5-1354-4b20-bcbe-c38eb9e029e7","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":148,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"04df9811-d40c-453f-990a-f5fdd89678b2","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":148,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"47497e9b-7999-4c65-a60b-fb1e91011b5d","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":148,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"18066372-9d0b-4d30-acd4-bb091c6a4fb1","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":148,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"5a0b30d7-07fb-4dd3-b3b9-7d60c4d171e3","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":148,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"f786dc43-de1d-4945-8d61-283619f05199","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":148,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"04958e69-44d1-4581-8e5a-2be0672a890c","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":148,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"974e5f89-91bd-4398-994f-7cd6be20339f","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":148,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"516319fa-08c1-471b-9306-079a07c212da","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":148,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"b21731f2-cfea-4efd-ba2b-15e57c362a1c","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":148,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"efc14ac7-bd59-427d-9dee-839eb2cc83a1","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":148,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"47eea9a9-b6ae-41d8-8548-7b183fb71df0","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":148,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"3690d33a-b3bd-45e3-89db-c9b9f0a562f5","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":148,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"45fb753b-7fa3-43ae-85d7-5849d78b1200","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":148,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"0d84e818-a65a-402a-9fc6-8ad1562cc8aa","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":148,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"ba791c95-af39-42b7-a5a3-bc9118a343a0","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":148,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"6664be62-ce06-4a3c-9c6a-59ae578d7ef3","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":148,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"714cce5e-c0be-438c-9dd0-4904f10280cb","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":148,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"4be7e4c0-5c44-461d-8bf1-bbaa42831a88","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":148,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"19f31a0d-11b0-4a70-b9df-4dd4a9f2087d","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":148,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"7a1bb8b6-47bf-4e43-9d26-b5eb040e20e3","block_type":"box","text":"public or private investment company.","page_number":148,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"bf5aca96-48d5-4c5e-b898-6c575b539f77","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":148,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"b4c46051-402d-4eee-b27f-bd5663db5ff6","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":148,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"ccf09051-29c5-48f1-9f14-96d3c559dfda","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":148,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"2952f38a-15dc-4029-94b1-bf3457cd7be3","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":148,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"088e585a-3828-4025-8597-31212ba09dac","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":148,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"74782766-d363-42f9-9204-18e868374e2d","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":148,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"585a17df-e534-4b58-9a51-17570131b6a9","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":148,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"8de304b2-39ea-4147-82b9-1b0fadf10194","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":148,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"96d562ba-60d8-40f9-a3d1-9d5c0d3f2fed","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":148,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"5465b9fa-aa24-4630-9525-aba202a10a17","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":148,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"1b5cb18e-f90b-4307-8d8a-0b93b9b00501","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":148,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"ec0ce900-7809-4f7d-b16d-ba0d2283ef15","block_type":"box","text":"intermediary associated with the account.","page_number":148,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"b390134c-588e-4e91-ab71-cbce83a8aa22","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":148,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"51d489f7-d442-4613-9497-5e2584f5e61c","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":148,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"c9da59c0-cf97-40cf-b2db-fa19ebe69831","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":148,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"7a92bbfe-e0af-41b1-add4-8c48a039987b","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":148,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"a8704cca-0ceb-4c77-9891-9c41a992aa17","block_type":"box","text":"CDSC shares.","page_number":148,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"a26ffaa2-8a1f-40d4-9533-70f67358f64e","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":148,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"bfb19802-604f-4942-b82f-d6d56fc6a9a5","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":148,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"f82eec25-62e2-4f8b-8038-ac53d4b9220d","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":148,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"989469cd-7bd9-481f-8dd1-801ca257d94c","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":148,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"f99912b0-7d90-40af-978d-eff833dcbba7","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":148,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"f62e2d06-08a8-4d8b-b110-ddc68e12f937","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":148,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"538e5218-4bb7-4681-a01e-299d845964f0","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":148,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"36532cd9-df0a-4554-af9a-c744f92d6967","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":148,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"25fc692c-8945-4edc-a123-5ec982378303","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":148,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"c67696cc-b657-43a1-a33d-dce22f342812","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":148,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"e863f75a-8c0f-42ba-acb3-50d9d010657b","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":148,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"fca42674-6ddd-43d8-94e7-0e69e31aa324","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":148,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"8fe0efe3-8e66-4a68-bfbf-aaf8ac015966","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":148,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"aa51bca3-3c4a-4a44-aafa-975e82c6fa04","block_type":"box","text":"II-105","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a85307d0-9f47-4b8a-85a6-e3253cd6d156","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7147e09c-e9c9-4ef9-88ce-9feec3088cab","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":149,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"e227d0d7-251c-4b85-b88b-82b2522bbe29","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":149,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"3bde6468-082f-4141-ad5b-a00f3493f6b8","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":149,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"b7b253bb-cac5-4be1-8ac7-58c4c4efc0ff","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":149,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"f897b790-b8be-441a-8448-a4414a16e813","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":149,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"829247da-c801-404d-a37c-f9ff4438cd84","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":149,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"49c2a3ba-034e-4047-9ff1-a5a8ce4e7164","block_type":"box","text":"Investor A Shares.","page_number":149,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"ee358acb-1738-42da-ab0d-9a4663c5efc2","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":149,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"7bdc5f89-e67e-463c-bfb6-4911136f06eb","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":149,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"12de5f48-017a-43f7-8ae3-9b42322c9d24","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":149,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"1386239d-26b2-4f7a-b478-6b1d3279ea29","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":149,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"d82b897f-b9d4-4b84-a92c-efae34fc807a","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":149,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"6dd35c18-e046-44ab-bc78-eed9e0566149","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":149,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"557e68fa-fc68-4562-8153-eef912266b21","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":149,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"7dc95223-6544-47c2-bb62-0d2f45119742","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":149,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"a6615f98-8dec-48bf-b57b-2178539001f7","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":149,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"2e7ad968-b462-485b-be52-e7e0dfa306e2","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":149,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"08c6ba30-25b3-4702-bdf4-4a2375744bfd","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":149,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"93502cf5-d440-4b2d-9e31-2388694caa46","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":149,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"afbdde51-9e06-4210-8325-d61e325c5bfa","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":149,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"6da9075e-c8c0-46d2-92db-fc738b55a465","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":149,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"339e28e0-4c3f-46f4-a571-0a0a24d8f814","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":149,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"1120c5de-6bd5-4b0c-a25e-e3dbf0def846","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":149,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"93a884f7-3f03-42ae-871e-e641966bb537","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":149,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"d577f092-31d8-42c2-a531-03e8e1597c3b","block_type":"box","text":"“Investor C Conversions”).","page_number":149,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"c0c8cb7d-cd76-4564-8302-b95d64b4f833","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":149,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"01736d98-b040-46dc-9815-4899bdbaf68f","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":149,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"2441d592-45e1-4d61-87ee-396eee6d11dc","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":149,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"8d88e183-1eb1-4024-8306-830f49ab7e0d","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":149,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"5b9cca8e-546b-4b22-a36e-d32a0a0298c5","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":149,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"87a398a0-1ca1-4842-b140-755fa83c3854","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":149,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"531e871a-ff0b-4023-bd46-cc2a7e32cf85","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":149,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"efcb3ab2-9826-474c-a0c5-17caf7f8a1f2","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":149,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"62d2cac0-e7c4-4603-99bb-50e9c0a4e570","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":149,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"81b6082e-5ca7-4ba6-9c6e-287239dcccfb","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":149,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"05c1cb9c-e440-43fe-8354-6dc93d392ed2","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":149,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"4fb5fd50-8c32-4b61-8301-0e2ba741f53e","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":149,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"b52f09c6-c664-4885-8de9-bd4cbc9e64cf","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":149,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"af4d60c5-e874-46b5-9942-0aa4feb2b0c2","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":149,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"58899bca-cf09-4d9f-990c-4c68bb1a5d4a","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":149,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"860e0dc3-f76b-4dbb-82ee-061f08a60bb1","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":149,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"94f1432c-42fa-43fe-8401-1adccfe8c013","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":149,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"52ed5a72-341c-4ec0-b751-7dff0215cf6f","block_type":"box","text":"redemption.","page_number":149,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"9fcd8054-6111-4133-85ad-79383a2a8cac","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"1330b93a-98f6-4fbf-b22d-0318f9061f99","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":149,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"251f2399-2075-4629-810b-81fb18e38082","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":149,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"2816b97f-397c-4e38-bf75-775038fbbb4b","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":149,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"42841209-0353-4ab0-940b-d65cf02b19aa","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":149,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"2aa2ffed-3aa9-442c-8423-55ae18b8f116","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":149,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"b6bb7e3b-d180-41d0-9443-2c41d15c1ef4","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":149,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"5bd70ff5-d2d3-477d-a726-65667bc94798","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":149,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"8015c665-733b-4e4d-b4ed-aa4fa292ce9f","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":149,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"07111bbf-74ca-4428-8f5e-15fd6404550e","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":149,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"29af2c14-52c3-42c4-95df-c9325c4ed1ff","block_type":"box","text":"II-106","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fe1d286f-ec44-4988-a0a8-402e65e1537a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"004d1133-8e07-45d6-b5cf-4ba9d9b09167","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":150,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"7e9621f1-b017-4b4e-8120-10f5c1c0cf01","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":150,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"8ab3a94d-2a7f-443c-a716-df4d6eae982a","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":150,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"fb5476c0-7ae1-4446-927f-129a8cae9dd8","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":150,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"88b76658-175b-4495-b510-77be7df7286a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":150,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"f9e07cec-82b3-4d78-89c9-eaf1585c4546","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":150,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"31d9e4bc-5a25-47c6-b3cf-72a49ed8fd80","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":150,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"e6fd84f2-0e0f-4883-a38a-efde73d4203f","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":150,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"daabb0cb-a525-4641-82ac-85dfe06a0b7b","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":150,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"c867b84b-5544-44f7-bd68-8d4487dcad87","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":150,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"18287d8c-8a4f-4ba3-905e-816203bb7f8f","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":150,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"bc910c9b-5999-4f37-9ee2-15ef1ff6d2c9","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"cec6877b-c3ed-481d-b637-88fdacba7e3b","block_type":"box","text":"Class R Shares","page_number":150,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"f511d73a-c0a3-4a8a-902b-d0870b9b5f1c","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":150,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"297049eb-30c9-48cb-8f62-419863a64fa5","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":150,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"2e28f518-d6cd-43b7-8df8-40732a80431e","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":150,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"5cf6790b-4a38-4ced-ab6d-b50e9b4ebac8","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":150,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"8bd50ab7-e290-4c6c-a4d8-b8505803ce86","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":150,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"30d74507-b22c-44c9-b156-75bea43db8e5","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":150,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"0245d19f-1855-4420-9fd2-033b59d8bc0d","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":150,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"43d76d0e-9504-448c-8cc8-50dc0aaa268d","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":150,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"551eac41-4989-4054-be9b-99c22e1c0774","block_type":"box","text":"Class K Shares","page_number":150,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"bcbc9995-4ccf-45db-8c0d-1727fed85256","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":150,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"806f5925-021b-4afe-8742-b0fc46b5fecb","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":150,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"12815fa9-2af2-48ba-aec4-1845033bc88e","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":150,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"0f9e6c9f-b53d-458d-b470-1d4e3f931c26","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":150,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"8687ae1e-21a4-4aad-9190-b54975a09de5","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":150,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"2d9e22d5-4488-4ec2-9d37-507fd156e7e8","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":150,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"d92c9322-649c-4db9-9dbd-84f785e312f4","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":150,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"d29cff35-9a56-4919-8321-d5948998d5fb","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":150,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"414a8a27-1eb6-462f-80a4-482eb8f5ef00","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":150,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"0e2c85ca-0273-464d-a54d-d359993f2b83","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":150,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"4ebc3781-e65f-4096-9cb9-06f6b46710c3","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":150,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"c869e3ca-d42a-44a3-8a63-6197f3e65538","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":150,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"46c46bb0-259e-407b-b83e-a2ec4219a585","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":150,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"51af744f-2a84-489a-adc6-56a96d16881d","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":150,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"962b2881-777a-4146-a338-471795e05136","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":150,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"06807ddf-3fc7-4017-83ec-f98f204db51b","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":150,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"24723287-81ae-49c2-a8ac-51d9bf3f6e96","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":150,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"881e043b-b77d-4888-88fc-616abc80570d","block_type":"box","text":"distribution and marketing agreement.","page_number":150,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"abf397dd-7ddb-430b-821d-8a831e8c8ec3","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":150,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"b7897f08-7941-462f-b24e-e90908c0e4cc","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":150,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"e403dc98-0815-4a84-8447-27dd6f8057e0","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":150,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"79fbb92d-0502-471e-a553-979160e8b113","block_type":"box","text":"Class G Shares","page_number":150,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"7a21158c-59de-457c-b6a4-de204d9125a5","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":150,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"d145e5c5-c985-4da6-aaa6-9e375a0b4f4e","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":150,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"cbf72d96-d86e-475d-857f-8cc3ef354824","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":150,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"8a288049-8d32-462b-93e7-356653030f7f","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":150,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"d158e27e-22f3-4781-9c0f-061530f9abac","block_type":"box","text":"eligibility requirements.","page_number":150,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"400058c9-571a-4a4b-b8ba-b284a004e744","block_type":"box","text":"II-107","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"70d62533-02f3-49dd-954e-688fb8bcc581","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae65019c-0a70-4f13-b521-14e587d813bc","block_type":"box","text":"Service Shares","page_number":151,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"315b8e76-5d2c-4763-a968-dd2b93f58b10","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":151,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"f5b35d02-f1fc-4b3e-accc-e8f728a66f7a","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":151,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"bc84e04c-9103-4cac-8703-42e0f8c66c5d","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"d1d6de1b-a73e-4ce9-9e84-0033b5211438","block_type":"box","text":"®","page_number":151,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"5bc24884-ac3f-43e4-a66c-b3a0058b9e2e","block_type":"box","text":"Fund in 1996; and","page_number":151,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"ad2e5c16-35de-42ec-ba4f-97e9471ae79b","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":151,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"67c839f9-e81b-43d5-b699-45acfac085ed","block_type":"box","text":"SM","page_number":151,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"809316e1-9074-43e4-9586-cd27ef581ef0","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":151,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"1c3e1fda-20e2-42a7-9222-b06611f06671","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":151,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"111532dc-31e7-488a-8b0a-9920d997eda4","block_type":"box","text":"BlackRock Shares","page_number":151,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"6464f8bb-9bf2-46f8-85d6-4b2a76abc653","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":151,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"a75e1ba9-d5ca-42e7-87c7-f5cc6ba1a313","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":151,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"f42d8045-7292-48b4-992f-b21130a37760","block_type":"box","text":"fee-based programs.","page_number":151,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"b34cc86a-d3f1-4eda-8c19-43d9744c6a0b","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":151,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"03741c91-65b5-4adf-9b1e-373a914b7713","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":151,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"1b1be317-8ca0-404b-ab77-73be79faa929","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":151,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"2d201ad9-9468-4613-9173-26439d6a0221","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":151,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"d75b40f0-0fae-42d7-bbdc-896c6861af9a","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":151,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"85377e8d-f3af-41f8-bff5-97b7c2e6d469","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":151,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"5f1b6831-1e45-4a4e-afdd-edeb4bd8818a","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":151,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"4b489a2c-7e33-48b0-b3ab-401e2a93b814","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":151,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"f4d31095-78f1-4f2b-b8de-dd27830c81ce","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":151,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"0c4b6902-7507-48c7-b3e7-9151cb5e8657","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":151,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"00ef6906-493a-40c5-a190-d1e73e6512a5","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":151,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"f157192e-e29c-400b-b4bc-036e61fd5f94","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":151,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"127e269c-e118-4926-aec1-c839029e9ccf","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":151,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"a040d80d-48c6-46f5-8432-91a81f3d99fb","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":151,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"438d98c7-64d1-4fb2-8ddc-8acea3fa641c","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":151,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"e0052d37-2e1f-4bd1-b624-9fb65c507767","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":151,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"4f32a958-fa23-4f15-803c-3c55f605856f","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":151,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"1f3f905b-b615-4dc5-b8c7-1a4bcd8c0346","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":151,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"adc32605-f788-498b-985b-d9955fb94c31","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":151,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"34e63580-dab0-4dfe-b3e4-9ba09885a688","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":151,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"896dae69-3b09-466a-bc94-7a6df8b2fcbb","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":151,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"77d77519-ce84-4c7a-b3ed-fda400e4a366","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":151,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"9a6124f7-bf5f-4cd1-8844-4a07034f21d6","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":151,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"a6bbc1aa-eec2-43c6-82b8-e739e8471405","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":151,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"13739363-cee5-4993-9c2e-763f473aeb34","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":151,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"49a0efdc-3210-43e2-9e27-4bab74311c9a","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":151,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7cf28354-85e6-4e1b-bd10-8df86bde3cdc","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":151,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"b5d5d6c1-0b47-4a17-b5a1-0b3627e5964a","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":151,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"31889bf3-b0f5-4709-ab3e-422b1f4bece2","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":151,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"7c916fe1-e130-4e98-82ab-35878d5596bd","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":151,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"07a38fee-2761-44dc-8af1-8ca443d3a886","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":151,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"e07655fd-7964-459c-ad2e-533389b6aca5","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":151,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"a465399d-255d-4fb9-a8c2-89c10fec17be","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":151,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"ac687777-4a1a-4204-bfa2-48557fa1deb0","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":151,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"056ee060-3ad2-4a6d-961e-735fd1f40832","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":151,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"9a3ed8bb-3885-47bf-a5a4-7fcc09d38566","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":151,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"dba356d6-5cbd-49b2-b54a-06d2f8dc0875","block_type":"box","text":"compensation for selling different classes of shares.","page_number":151,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"0046b37b-6259-4c48-af32-918a01089168","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":151,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"cdf26350-9915-40f6-be3e-cada9c4053e0","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":151,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"0d87bac5-d949-4b23-ad68-985de2aeab16","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":151,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"6486200f-d4c8-4c7d-abbe-40975d3aa34e","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":151,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"49eac019-6e22-4983-9a58-37581fa610b3","block_type":"box","text":"II-108","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d0ad4d81-9e66-435a-a4e4-17904bf664e0","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c68ca317-d071-438a-b748-800f37edbe9f","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":152,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bbb66041-2a19-46f3-9dd9-24691f28132e","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":152,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"23d1c2a6-9c6f-42ed-b0fe-0cb8f9871612","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":152,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"7633073f-cef5-4060-bf6e-aade9a488c52","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":152,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"8c0bee28-a936-4bd3-afcd-48650e0f3d4e","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":152,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"498c8d49-9ed1-4bc9-9561-c958b7a16f82","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":152,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"3508e874-2223-4dff-8968-6a60096fe9e7","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":152,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"59a341bb-1a50-4b7d-973e-3639267657c6","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":152,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"589738aa-c362-44a5-8c5b-d85a2142409b","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":152,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"40507548-ecbd-473c-a570-dc5f51f1ed1f","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":152,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"aefd5833-3f95-4581-af73-55e903a370b9","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":152,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"5573145b-6d84-4eb1-ae3f-24861c51a011","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":152,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"c5a0340a-6757-49e0-b322-562f4ad49df4","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":152,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"71dfe5b3-4062-411b-997f-88142785e0c8","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":152,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"500fcccc-87fb-4e83-a161-a4cabc056456","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":152,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"f157ba3d-dfd1-4f33-ac3a-869a79822653","block_type":"box","text":"easily accessible place.","page_number":152,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"7cc93234-f0c7-4e7c-a356-ef55d30d2211","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":152,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"bcc894dd-5213-4103-a541-518aba9a19ca","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":152,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"2d97fa8d-9fd0-40a0-8d2b-0cb05f51d8b1","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":152,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"3cf6bbae-9125-48a4-8c05-467a9d16683e","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":152,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"a4ad3a71-faf7-433d-90ac-dfdc9e2d37a4","block_type":"box","text":"fiscal year.","page_number":152,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"ce4f6b91-04c1-4aec-8d61-79998c87198d","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":152,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"f39ccf57-afe0-4249-bc20-d7f204e11179","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":152,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"caa1be30-8883-41e9-a62a-6d7bb1c6d900","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":152,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"034bbe75-72d1-4592-b530-e96f795522ce","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":152,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"7994d637-1851-4438-8d0f-c70f0d41b875","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":152,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"9479e24b-b28f-4d6b-9edc-14f2d346f341","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":152,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"6f187648-11e9-4891-b58c-6a93cf8794b9","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":152,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"2e836ce4-500e-4943-b831-dbbacb46a835","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":152,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"9d33401e-f0fb-49da-bfc4-1343fb743181","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":152,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"fc54f645-2514-4ce0-9767-a9582e500bb5","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":152,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"744b576f-d6ab-44a3-857a-bdac8eadca3e","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":152,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4e59f9b6-920e-41c3-b81c-220cda359d32","block_type":"box","text":"and Class R Shares of your Fund.","page_number":152,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"f30da562-10a0-4d3e-aa7e-372e211c6ef5","block_type":"box","text":"Other Payments by the Fund","page_number":152,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"49a2d33b-3660-4043-aea4-4ab660187b28","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":152,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"94bd7d07-dc6b-4829-97dc-726d098f35d7","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":152,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"0bac80de-0595-4793-8acf-973357f42992","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":152,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"1ba88473-be35-4bf0-9658-514379ed5d69","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":152,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f6657766-e649-4109-b5d0-53795d38a765","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":152,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"8055d8b2-0b7f-4033-bc8d-bf4d3092cf62","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":152,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"09cced3c-4948-406c-89b8-85b21f800fb1","block_type":"box","text":"of these payments may be substantial.","page_number":152,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"3472cffe-ffba-45be-93b0-442d768fad33","block_type":"box","text":"Additional Payments by BlackRock","page_number":152,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"8e617be0-9994-406a-8723-30c0b04fdafc","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":152,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"aad83c83-94a7-4cdf-bea6-ad8cfb672a80","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":152,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"826511a8-1150-4085-a871-efe833406415","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":152,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"72331ce2-fe55-4770-8130-3caee04333e9","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":152,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"ce35c4a9-de74-44c1-9e9f-12c1e0aed8f6","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":152,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"96465d23-90f8-4df5-a6d5-ed1a2d18f4ea","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":152,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"be24eb82-6563-422c-95ad-dc3c7a91074b","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":152,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"c3e44601-6d71-4834-91b3-d9f939fabff3","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":152,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"e79fb0a8-a244-4dfb-bca8-9d01d3737df8","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":152,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"1c91a383-2521-4027-afe9-6372f48f02b3","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":152,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"9d0164bb-9768-464a-bd1c-1cb72588521f","block_type":"box","text":"II-109","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e8f6d28b-e61f-47ab-a1b3-20bbc4b18a02","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8e519c1-b400-43d3-9d0f-21d0b88b8e60","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":153,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"1c510ba0-d15d-4f7f-b9b9-513032f165ad","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":153,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"04872478-c105-492b-b8b2-f09989b73c31","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":153,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"0d32aa5c-cd91-466f-8326-f0281f048461","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":153,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"3e3827f7-3bd3-4b13-8121-339ed92bfefb","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":153,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"e5747f60-28ba-42be-bc82-dbf66c00c911","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":153,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"ba1fadac-e259-47b7-afee-997f9a6db047","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":153,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"ade5acad-083b-4b4c-9ace-6691793eedab","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":153,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"2fab96ab-41a8-4ed1-849f-65c680b8bbad","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":153,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"95a7ca4d-e536-4dbc-a137-e28480bf6f1b","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":153,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"dd5ab040-32bf-402f-850e-4083d77f7fab","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":153,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"ebc5a732-703b-404a-9261-d54d5ae8269a","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":153,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"82692773-4a73-40d8-8967-b3a8e655df9b","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":153,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"736d9ccd-bd4b-4d3f-92c5-0f360d9cf656","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":153,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"44488d62-9c2e-4281-90da-c56e737ed838","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":153,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"875e4c49-ccaa-4e55-93c5-5398255d854a","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":153,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"47865f2b-6925-47e9-a735-61cab013bcf0","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":153,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"4d935385-cf34-4096-82f1-ad955b2c017c","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":153,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"a2aafa56-5646-4f97-a76b-11bc0c5ecdaa","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":153,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"5240de90-5a5c-442c-978c-c727f45a74a1","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":153,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"8acee660-a701-4e88-96b1-fd7e99b1462c","block_type":"box","text":"Funds.","page_number":153,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"27d6c063-322c-4cc0-b584-2598445fda1e","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":153,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"e23df5a8-addc-4388-88fe-6d5bfe98cd4a","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":153,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"d0d89259-37ad-4252-9ad9-05c729e29b38","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":153,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"638468d1-e2dd-47a0-a65f-ae8f5e40c69a","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":153,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"35638f7f-888c-4bd5-ab4c-dac3f6448698","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":153,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"33c462ac-1cd2-4e93-b106-70d9b19573fc","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":153,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"1ce55dc1-0e6a-4202-818a-69a0b1b5c266","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":153,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"f9d5441b-2040-44f8-81ec-2c8be04dac49","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":153,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"586c7292-d791-401b-b407-2fbb34e4441d","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":153,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"bfeedf82-bec6-4e17-9878-5614d939fd72","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":153,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"9a36e5d1-ade9-4480-8d18-26d41f8118d9","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":153,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"6b3ec48a-6462-4e83-9618-dc255be3fcb1","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":153,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"71efba8d-ffdf-47c4-ab73-05d8d2abf23f","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":153,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"c27e9599-6088-4f41-9148-5a0411708113","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":153,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"1b5ad69e-dad6-4c06-a517-a6f7ef4034a7","block_type":"box","text":"B. Shareholder Services","page_number":153,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"a27bf48e-1b8e-476b-88d8-b2dd63927e7a","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":153,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"4d650374-a315-4a9c-9f09-69d46e8eb959","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":153,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"fbd8f7e3-6ed3-4545-b3b3-1e6e22c09201","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":153,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"d6085b8f-ba2a-4f51-91df-aea4c4c97c0c","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":153,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"90f7f9d0-95fb-498f-9fe8-e5a996f5b1ce","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":153,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"428b20a6-b467-4aa0-bfdf-483af8ad7c2a","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":153,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"a7e25953-59e7-43dc-be29-38eea648da56","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":153,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"84a554db-d04e-405c-9c9f-92eb05037a5c","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":153,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"9518a38e-1e1e-4857-b86e-7f7b3ef118d1","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":153,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"bcfe78c8-69e9-4620-83c9-867f7d120625","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":153,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"dce70527-2393-4c8c-a9e8-a47e290e3005","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":153,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"1140dd03-f412-4325-a756-0af97396de86","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":153,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"e27d8c8d-8dc4-4fa8-b9e9-6a914eff5dbe","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":153,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"98a47066-217c-483f-b01e-bb9d9a1184c2","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":153,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"ca0745b3-fbc2-48fa-8d53-9cbdd9246e0c","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":153,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"70f19d05-03d3-4fcc-875a-07b4efc3a46d","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":153,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"980229c8-2932-4f76-b126-855ee12aec55","block_type":"box","text":"II-110","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f81c053-5417-4599-8479-c560d49f3f4a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5f0f8fb-4113-499b-ad8a-43de553b4611","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":154,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"1ad08c28-07c6-4111-950e-2970af485e33","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":154,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"d9e06a25-40ef-4c71-8a5a-df6b496251dd","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":154,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"138d4835-b24c-4c53-b991-fb0a337b207f","block_type":"box","text":"&Par tners","page_number":154,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"7d4f5997-968e-4652-b25f-b22dedca8985","block_type":"box","text":"AccuTech Systems Corporation","page_number":154,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"702fbc88-5eff-4902-975a-b13f4eba5bfb","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":154,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"9017d4bb-1c65-4faf-9d1d-a0a4dc756b30","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":154,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"0a31532e-31e5-4adf-8100-b84cb162816c","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":158,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"072847de-19c5-4d7c-a95b-7b1473a66bea","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":158,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"2268a7e4-e280-48e9-990c-d69eec93a47c","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":158,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"33f44c63-9cc0-486b-9152-c1418ffe6b0f","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":158,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"7425d07d-c0ff-4e92-a2de-b70a7e4b7d3a","block_type":"box","text":"redemption.","page_number":158,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"edbb828e-14e3-4149-a2b1-9618dc85b2e9","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":158,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"9f581f70-9717-4e9d-972f-01100f8f3c26","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":158,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"dc3ebaa6-0de6-457c-a50b-8b2dff4777db","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":158,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"f9f6d7ba-018c-46bb-aa1e-4373fafe304d","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":158,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"320a6184-ecdb-4feb-a778-9af96da209da","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":158,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"d3535cf7-f17b-4c72-857d-66d559bfa999","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":158,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"136e80bf-4520-4df6-a8f1-a86caf61a29f","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":158,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"6ad783a5-0ce0-4167-998b-d06bb4d4ee3a","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":158,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"b848ff17-f622-42cc-a502-e81c97a59b9c","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":158,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"1d4f6244-9bbb-4af7-b6e7-1ffdcf21f012","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":158,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"f0169e54-2703-4b40-a06c-49611724d55a","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":158,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"719e5511-ea76-4f19-9ab0-9f1b95ecfd6d","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":158,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"0390a6e0-a872-4193-813a-d24c67a97c82","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":158,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"57f85f9d-962e-4e2a-9b6a-74813c768cd5","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":158,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"81b10090-5091-462f-9eaf-5f75bf0629a3","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":158,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"2e7f73f4-665f-4f3e-8c2f-6dbc6581e721","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":158,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"463c4cef-ad36-4492-808a-db99c1021288","block_type":"box","text":"Redemption","page_number":158,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"4ebffc80-58ee-4a7d-aa3c-e28c5b277e12","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":158,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"7a4bba60-7aa0-4a33-9be2-b4ffdbc0df56","block_type":"box","text":"Redeem by Telephone:","page_number":158,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"9be84dc5-8bc9-4d1f-b012-16c33169a2ec","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":158,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"27f6658d-38fe-4a16-84c1-78b54532a04f","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":158,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"f78f4622-1fb3-4b87-869e-05425b1b5428","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":158,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"5b30add8-4a83-44d8-a485-acc87f6ccd0f","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":158,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"5c474269-3a5c-43b1-b934-4de807e860b4","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":158,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"24f30fb4-ee8f-4db6-b6f9-dce217054799","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":158,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"bfc25282-85ba-4c17-b657-7605b6d6d5d9","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":158,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"28f36614-41f8-4ad5-a9c3-8358b6003927","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":158,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"3557a37f-537f-4586-b507-b467644265f4","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":158,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"b91fd85c-365b-4c07-a3d2-bf8f1c03ba9f","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":158,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"0de61bc9-d40b-4309-90e3-e130107fc15a","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":158,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"8d7fd9ab-6df8-4a0f-89c8-80b4a547769e","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":158,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"225dd0b8-fe3a-4b45-a8a4-cef67dff6235","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":158,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"9fedb0b2-2755-401f-9dee-b0098723ae3f","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":158,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"12c24208-d2a4-4d81-9cb7-e145bd6afe42","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":158,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"da393782-2cc7-47be-9e43-fe38e5375d1c","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":158,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"944a2572-09d1-40a2-afa0-8376fe13ef09","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":158,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"23bc6648-c0e6-4fd5-bac5-a325cb228746","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":158,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"81268c26-9230-439d-ab42-6af985d0dd77","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":158,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"e358c931-3ce5-40f9-99f9-2ccfb599010f","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":158,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"dd05ce37-53e6-4c4b-86a6-317b18fce4bb","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":158,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"f8ad6f5a-eb98-4876-9ec1-06baa0c6c3b5","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":158,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"94665172-2309-4c39-8c2b-7cb31b12d00b","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":158,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"17adecd8-efe6-472d-ae3a-00f4b33829e4","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":158,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"24679c3f-7dad-458e-a3d4-327a0fc1a4f4","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":158,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"050bdf93-1d3c-45fe-a5ed-947f2a165ab0","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":158,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"8482784a-d66a-430d-9add-4318e80a7224","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":158,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"095bc6cd-51ae-49bc-97d3-2805bed16817","block_type":"box","text":"II-115","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"72a062f5-0bcc-415a-b988-48818391cc72","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e92968b8-8f7b-460e-810e-fdfd889dbc8b","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":159,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"3e816491-ae84-4eab-a8a1-159a2bfd6172","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":159,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"bd08368f-8882-4e45-8e23-040d098d7f31","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":159,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"1e86a557-1c5e-45f8-9651-59138f91ff2c","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":159,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"3097a38c-070c-44ab-ae94-6de5c19bcde8","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":159,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"e59dcddd-41a2-497e-b9d9-62713b4afbd5","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":159,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"891d9806-5f7c-4f9b-8fd7-3d3dae962b08","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":159,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"31fd4310-a265-4750-b541-75f7aef9b294","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":159,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"da7af846-19f0-4f79-90bc-aa3a352d9a6d","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":159,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"c00d6e19-67af-4372-997d-815563ae2539","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":159,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"1ae38910-4751-4f52-889d-59abd06ff629","block_type":"box","text":"Redeem by VRU:","page_number":159,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"436dcc88-de75-40c8-bfee-6046c4902611","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":159,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"b538b022-73af-4037-93cf-b0c4b836d78d","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":159,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0d14a2d1-f777-47d9-b4dd-6e7869127cac","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":159,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"a554e0cb-49c7-4b92-bf88-b391d5a79773","block_type":"box","text":"Redeem by Internet:","page_number":159,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"2b05175d-dfa6-4762-adbc-7520bbab1fa8","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":159,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"9d1d17d8-a82b-401c-8594-371ab42787e0","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":159,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"f41aa799-3015-4eb5-84a0-419c3a20a130","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":159,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"6d3bd8da-7a7e-4b69-90e4-5e3c7bbec42e","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":159,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"0c068994-e7fd-4c34-afd3-d56053e2585c","block_type":"box","text":"institutional investors.","page_number":159,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"da257277-c014-424b-babb-b3a6ffd1b282","block_type":"box","text":"Redeem in Writing:","page_number":159,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"084241d7-f1e1-4528-906f-d16ae6c59663","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":159,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"806271a5-732f-4cde-8417-bec0e57ceaa5","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":159,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"89b8b092-bad7-4b10-9135-d76d84c49ad3","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":159,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"67c73860-1b4d-4d4c-80de-3e9d22a24657","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":159,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"98f49789-98ef-4632-be65-3659483f7909","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":159,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"f365419d-9d68-4a0c-a0cb-05b15144d215","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":159,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"44ce887b-51a1-4d0f-9788-1fde7f189cfc","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":159,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"9a45a98c-3336-47af-b588-fa6911b55997","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":159,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"1e153909-80a4-41b9-b8a3-97672e347428","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":159,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"dd82c417-cdb2-417d-9429-20e877a649bb","block_type":"box","text":"or wire to the bank account of record.","page_number":159,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"114781d6-7078-459c-9a4c-8582cc0abc16","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":159,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"b89a3e18-f54e-4730-87e2-302fd25926c7","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":159,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"46c9cde3-78f4-4d43-9dbb-5056b0e274c5","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":159,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"cb034596-db11-48fd-9628-10a01caca64b","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":159,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"0ebc2118-3c0a-42e8-9796-7949f3351845","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":159,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"7860d473-d320-4567-848e-e8c9b6976b7f","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":159,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"3187a321-4e49-4655-8083-ec78c194b095","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":159,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"25e7048a-a62a-4dd6-888e-ba41b340160d","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":159,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"b78cbebd-7420-4218-bca4-01d7a265f2e9","block_type":"box","text":"redeemed by the Fund.","page_number":159,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"c3b188e8-4941-4b4f-868f-e38533d6cec0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":159,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"cf3ac5bd-6888-45dc-ba76-3713954d87ac","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":159,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"30683112-75c3-4cc0-ba2a-61649becfcf5","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":159,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"1406bf38-1488-4f01-a6b2-7c9dfe3f22f5","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":159,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"9b8c1650-bedf-4bb0-9b93-b2932da529eb","block_type":"box","text":"for any reason, including market fluctuation.","page_number":159,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"36604b4f-71e0-4415-af5d-dabca6241b4c","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":159,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"87bec551-31a7-4926-ba08-e91241dd2a2f","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":159,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"97261e47-9073-4256-b3bc-30fbfcdcb867","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":159,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"5c3178ba-489c-4001-b324-5fd733f0ccab","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":159,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"c2a1bd72-b3a6-4193-9605-4f587a5bebad","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":159,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"669134d6-8e48-4ca7-941e-08309d3b910b","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":159,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"8ab4fa0f-e87a-4339-92a6-472a871e41cd","block_type":"box","text":"Redemptions in Kind:","page_number":159,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"7cb5becf-7612-4ba3-9a08-c317050731ea","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":159,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"2509f610-d875-4ed1-8bbd-265d3312cce6","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":159,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"d737e95d-a9e2-4db3-afdf-e98df86f6a70","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":159,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"588c5835-3d9b-4d1c-9a20-161bb1c9e9ad","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":159,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"e8e329dd-f3b7-448a-b2a4-0a8046438cdc","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":159,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"05b62755-5b74-4a18-900b-7ad3c5bbf665","block_type":"box","text":"II-116","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ee19cb50-2b9f-4b29-91f4-f13baf50ec93","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88786048-caf9-4c65-9ae0-e77c0e280a43","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":160,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"328e2564-3383-4215-9766-216cfa56bbce","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":160,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"aa1abf1c-08b4-4525-8590-f3e6a5c9e71f","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":160,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"a258c7c9-2fff-424c-8956-7ec64bc1da6b","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":160,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"13d9cf9d-105a-4497-b97c-03f5333b377b","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":160,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"e83d3708-4e39-4b20-8930-e3585fb003b7","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":160,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"6333cae8-5fce-45c5-bc64-0b214ca5f454","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":160,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"0efc64cf-7f7e-4333-a148-db98a8826bc1","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":160,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"034d9442-463a-4401-9b44-bf77ee96ac3a","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":160,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"a76d925f-8d3d-4104-8ddb-81d4768bf210","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":160,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"31324ca0-b65b-4105-9ab0-bf6125913625","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":160,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"a42e5aa1-c03f-4483-8cd2-e92aa2097852","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":160,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"1fdb57b9-629a-48de-aeca-0f4a4a708ebd","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":160,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"26c4ba5a-d2d5-4bdc-82ef-cc49c00e1dda","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":160,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"f50c868b-a06f-47f5-b52c-d8568f22c76a","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":160,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"50700613-db28-4165-9c2e-a0391e4315a5","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":160,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"be1e3f53-7b3e-461b-ab5c-0ef4c079e235","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":160,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"a27a85ae-0239-404d-bb09-9f0d3cff85b9","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":160,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"0b1ae283-1bcb-4b00-9543-ad943bf5c234","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":160,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"69e92c31-ce39-413e-82ab-12a85c684605","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":160,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"6646adbc-6c2d-453e-89b7-1860c1b489ee","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":160,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"2701a9cc-52ad-4184-a07c-816446fc48f4","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":160,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"f3e5bba2-524b-4135-b057-02e1c52edb77","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":160,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"0728ea63-9377-4b89-80f1-061e764f845b","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":160,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"81cde485-0036-43a1-b321-65f5d703e1cf","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":160,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"a8711a5b-769f-4d45-9ebd-4061d17793e7","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":160,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"9e8bfa22-2d27-48d0-93f8-0d85562ecb09","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":160,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"6842d17f-681a-4103-b944-c2f1f77d36a4","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":160,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"b70526a7-871d-44ff-ae0b-a7be5ac618f1","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":160,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"2073e15c-0640-48a6-84d8-2fc56f3bdefd","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":160,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"64d681b3-675e-429a-b614-981dcfe9799b","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":160,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"d6fb6f8e-418a-474d-9462-82c2fc9a6a30","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":160,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"1a4e01d4-20ad-408f-807a-54f1d061a053","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":160,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"4f742404-3114-47bb-ad2e-735d0bd05340","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":160,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"298cd40c-a841-4085-be1c-76366a52aace","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":160,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"625f3cc2-ee18-45b8-aeb6-a4b6eb84fc1b","block_type":"box","text":"Repurchase","page_number":160,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"6f73530b-fbf5-4adf-8a01-89e7d76b61b3","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":160,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"ee2c1c42-be2a-40d8-a43a-93fb09fa3252","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":160,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"aefe8a80-1710-4d93-be6f-109ed20ae830","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":160,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"9a59115a-0c46-4826-81bd-9f995892d210","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":160,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"8b7e6487-3091-4413-8be3-1cac1c434884","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":160,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"37118687-b6e9-44c7-8f42-dbd38429ee79","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":160,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"289aef54-d84f-4c5d-802c-4be9addeb263","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":160,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"77f701f1-af6c-402f-b2a6-6352757d97cd","block_type":"box","text":"next business day.","page_number":160,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"d270650b-d508-4946-9d10-9d9bfd555236","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":160,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"47306a88-9c8d-4815-99f9-1110a166d3ed","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":160,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"892e67ca-c7fc-4eab-b0a9-6f24b01b2317","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":160,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"95a4af42-4798-43ff-b992-600b548ec51c","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":160,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"a9540f6b-01f9-406b-95df-5bc1243b8d49","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":160,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"7daf8f59-85e8-458e-8251-4b037f9ca2e9","block_type":"box","text":"redeem shares as set out above.","page_number":160,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"ad6a2542-cecd-453b-95cc-0739f634db4b","block_type":"box","text":"II-117","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50db5471-824b-4d43-a56f-3b191cae1ccf","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34dc3114-e29c-4d2c-abd6-11c0f94225a6","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":161,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"353efa87-1025-40c2-8828-9fb8e5d16068","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":161,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"c8c84dee-25bf-448a-ba97-7da0064a00a9","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":161,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"c6806cde-2ff1-406e-b066-3e95bcd0e7bb","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":161,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"d211b3b5-e428-4500-9f1b-66636b512ccd","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":161,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"b0deaca4-85aa-426f-9eb5-be9afaeeced4","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":161,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"7389ccf8-04c8-4da8-b0a6-15f18648acf5","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":161,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"f47490b7-9fc4-403a-a6f4-a5fdf7056dec","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":161,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"37b7e95c-fba5-42a4-8e79-32e19f55f27f","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":161,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"3298f500-2f9a-448a-9207-692c522100a0","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":161,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"73de75af-0333-44d1-a4fa-3999927c8267","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":161,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"3908bfe3-1627-4c03-9212-f1634712730f","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":161,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"3cea4664-0228-439a-9724-b516baca8607","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":161,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"837f5893-a6c3-494d-9987-b23a40e8faea","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":161,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"990fbb3b-0392-43c2-ac82-98729e863786","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":161,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"3f6f84ae-5c99-4ab5-85bd-31ccb5286738","block_type":"box","text":"Investment Account","page_number":161,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"016838cc-d893-4aa3-bc57-27483df90fb3","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":161,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"43568e68-33c8-4147-a8a5-03d6d1d3490a","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":161,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"ef3489cd-1eaf-4688-bd9c-1ca738afbe07","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":161,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"62d28f64-f39d-4da0-a061-df959d02a59b","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":161,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"53558888-c929-4caf-a366-6d76f4a07af8","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":161,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"73d1c76a-0cef-457d-899b-4f1816bd1068","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":161,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"5b6afc59-558f-4245-bdc0-0885a0c00396","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":161,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"4ebd4221-80ce-45ba-b2f2-8f78300fa4aa","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":161,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"56c9fed4-4c6b-430e-9275-b939945f3be9","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":161,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"f56538ac-34cd-4099-bcdc-fc3a71033846","block_type":"box","text":"automatically at the Transfer Agent.","page_number":161,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"d1c5e45e-f1aa-4015-bb4b-e8a1c90f2b2d","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":161,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"70090c29-d2fa-4b7f-a256-743768f0eb79","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":161,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"cf5f8cda-ec5b-423f-9257-750e5bf410da","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":161,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"4ac35e9c-be6a-4565-9bc5-27bab87131cf","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":161,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"93d5943d-2497-439c-9915-5de252fec223","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":161,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"c135c7b3-a557-4945-a524-5b84d88f557a","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":161,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"067a9100-1a06-454f-892b-3966f752f33d","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":161,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"2d0926c0-0bec-42c3-a5dd-6562c964153c","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":161,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"b851454b-cf40-4a54-a4fb-46dce3251c0f","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":161,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"200a717b-a9ba-4e05-8642-732291c0b84a","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":161,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"8433df1c-6300-44b2-b013-79d5308fe446","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":161,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"54fb51aa-7bed-4d24-a610-cc718ae2abe0","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":161,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"992f7f04-d7e8-4384-86c4-bce8b9e1e94b","block_type":"box","text":"issued.","page_number":161,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"bf6b10f4-6b4c-4850-b22d-9e1b0388c274","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":161,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"847c8d81-283f-45d5-a667-f259335e2224","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":161,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"5078ab07-f157-47ab-aeba-2b380f10b0ed","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":161,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"37b9b4bf-efeb-40e9-95ca-e3f5b7dcdc50","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":161,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"82376b1b-8d8a-4b48-8eae-44756cd5e864","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":161,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"9e7cc243-8155-486f-affb-36809c8027e8","block_type":"box","text":"Exchange Privilege","page_number":161,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"58cc54de-c7c7-4943-949b-df4d787ee52c","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":161,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"0fd89843-2631-445e-89f7-74c524761430","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":161,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"207c45ff-72d0-4011-bd0c-f0c2950ca01c","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":161,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"f6c1c6f9-8ce2-466b-93cd-06de790b8117","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":161,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"4b856252-b73a-4c3c-88e0-b36f2fbff8f6","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":161,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"93b44e12-6f0b-4eb6-92f9-aba85a7ed13a","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":161,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"ed6d7cb8-8659-4c8b-abb2-baf912035462","block_type":"box","text":"II-118","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1f6d884d-e726-439e-83c5-2c8e10bc0fa4","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a4152a9-e679-40df-afb7-a92c947c0640","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":162,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"612049f7-3018-482c-bd10-76094c19480c","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":162,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"32b8babf-45b8-48ba-aa2f-7b2290b9e2e1","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":162,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"1f79f3b9-30e7-449b-a191-54d8a787f470","block_type":"box","text":"Institutional Shares","page_number":162,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"f368e63d-b852-4979-88cf-7dd7165ac5a3","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":162,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"786c5f03-0984-4a9b-aff5-7556a1b82837","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":162,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"3968292c-352f-4f77-9861-6249200621a9","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":162,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"cff8e7af-3f8e-42d2-8845-70e6bed68f3e","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":162,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"4d6e3703-4da9-41fa-93fd-bd632cf7b86b","block_type":"box","text":"for Class G Shares of other Funds.","page_number":162,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"4c3121ff-3fa5-41a3-a500-27a70ada389b","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":162,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"15e6549b-d893-4ef8-855c-9c793915a4f7","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":162,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"8d5e06ca-526e-4bbd-b781-b933a3a5f32d","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":162,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"4dae5b61-18f9-4906-8d41-1f9c916e3187","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":162,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"4f0b30b4-9a12-434e-b6d4-cf07c3c3f55e","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":162,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"26f33859-ce17-4e09-99a2-a327e0689a2a","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":162,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"545d3088-5157-4410-8c5e-717652fd51ae","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":162,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"25860baf-ba41-43b8-a566-5d23c8e68bd4","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":162,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"4ac57c6e-e451-484a-84c2-5341696a7d39","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":162,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"353fcb1d-6a8a-48a8-8455-f40682314ed1","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":162,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"b4a6c061-b83a-4296-8cfd-81475a7989c0","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":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"8bdfb0ed-5568-4c99-b99f-a1de676d852a","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":162,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"95a428c4-d4ac-46bb-affa-ca104ce434c8","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":162,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"7bf89735-8763-42ab-a63b-54c67479d696","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":162,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"696ac74d-832b-427b-8979-0ff9b5d397d2","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":162,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"c27bdbb2-48b0-4af6-bd56-a20069cadf83","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":162,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"48cec82b-4acd-4198-8e51-0184efb41293","block_type":"box","text":"Exchanges of Service Shares.","page_number":162,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"7c4efd39-e95a-4d85-a65f-57fc632e60ca","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":162,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"c597cc27-1e5c-436c-ac5c-7399ac670227","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":162,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"7747b9fc-3b41-4222-9d7e-eee196098c76","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":162,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"669ffc33-82ee-4d71-ae21-677d9fbce32c","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":162,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"ffe7bf14-74ff-4e4f-81ec-40ab87acf7b8","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":162,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"dfea094e-0fa7-4842-9814-1e435df679fa","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":162,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"ddfd40e3-06ff-459b-b79e-a97a4f07b07f","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":162,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"0fa4d102-5e78-438a-8ed5-e1cce0828bf7","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":162,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"1ad5d8a8-5f26-4282-bc1f-dac7b38605db","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":162,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"21675ec1-c1fb-466a-83ae-26ac19c0f64c","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":162,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"f71a40be-378c-4744-924d-11bed98c2694","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":162,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"0189f5a4-9f8a-4820-a141-733422ee51fb","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":162,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"4c72837f-8aaf-47fd-b846-47447d47bcb4","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":162,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"01938862-004e-49e9-a4a7-49e0a26ffb57","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":162,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"f49ca447-294f-4bef-8554-696057012c13","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":162,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"eac4fdfc-1426-4f89-b18f-228105b548ce","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":162,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"c626009b-59aa-40a5-8b80-67c03b3e6636","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":162,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"ae2bd65c-ca7c-47b6-aa49-c4c425f77189","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":162,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"f9bb7301-665e-4b97-8729-7c3691ce673d","block_type":"box","text":"exchange.","page_number":162,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"d30e2124-f67c-444c-a806-a13d835039f7","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":162,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"47273aa3-9ad9-4b24-8d51-f717be76783b","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":162,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"082ef48f-830d-483a-99d5-aa08cfc98b0d","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":162,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"56d212a3-8f54-467a-960c-026457c72de8","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":162,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"b0467d21-e788-4be7-bea2-d1e05829f76c","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":162,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"d71824b3-df26-4650-be03-4672e8d2b154","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":162,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"cc3a5d2b-f2bc-4e7d-b2fa-072c802375d5","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":162,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"b7a00282-22f8-4282-bc18-6e5bb25555db","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":162,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"928570b6-4c38-4660-9d52-77147002271c","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":162,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"7e502e69-82a4-4a2a-807a-067308dc178b","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":162,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"47a585a0-b41f-4236-baff-fc41ca592c99","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":162,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"8702eaa2-900d-4adf-a3c2-893815a7db97","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":162,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"f82033cc-e85e-48cd-9d26-a83a259c9235","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":162,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"84e91df0-22b9-4568-8136-f4f281663968","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":162,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"2191dd21-38fe-4a31-b506-81cc54dbf722","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":162,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"0ec293af-b111-4502-9334-d1a4cff11ccd","block_type":"box","text":"II-119","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"92bee1f0-9027-4267-9727-ce5d9b9d167d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"968bfb8f-d6d5-47dd-ba14-cfd1bf18225a","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":163,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"57b662ac-0cdd-4bed-a756-f8cc1ea69a49","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":163,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"0a0e0737-4e9a-40a7-ba1c-9967f9ac3885","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":163,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"bb9d5b68-9e55-4554-8503-bec8df8ef6e2","block_type":"box","text":"Transfer Agent in writing.","page_number":163,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"0e47857b-b9ac-46da-ad65-d80d5af48889","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":163,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"3f99a1d1-94a2-4d14-beb9-af2625fe9ef1","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":163,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"7831bb29-9e5c-47b5-906f-d6dd16f4f9fc","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":163,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"2bb620fa-9182-4fde-8abe-17ae95968b78","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":163,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"6263d865-203d-4d0e-a16c-106ba4bcc6db","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":163,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"bf6233e4-8f29-467c-b1dd-45dc4bb90c8b","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":163,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"22e047ba-af27-4d2e-89e0-195c31ae7592","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":163,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"b81e9bf1-446f-4efa-9651-9f3118f72ac2","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":163,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"e6cd92e3-2566-44b7-9b2d-3451cc04fda6","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":163,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"b3ed5702-88f5-473f-ac20-1cc4cc1a9093","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":163,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"37f1658b-9027-4d65-be32-59fca11abc7b","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":163,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"f8de4d7f-96ca-4b76-91eb-bae2814a5ec5","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":163,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"5824e245-0117-4574-8a33-b3eb144f99d3","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":163,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"7466dc0b-3b11-4875-9a42-9174e60358b9","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":163,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"6a424ed7-399f-4fda-b167-6171568838c0","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":163,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"7f30b5d4-cae1-44cc-832a-d83da0c91238","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":163,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"639ce4ff-dfb9-4166-a8ae-258ab8fede7b","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":163,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"95974621-5d02-44fe-9df3-6e1f2a82b917","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":163,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"1c120b7b-ca6b-47e6-9304-21368c18d391","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":163,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"2e02583e-649e-4313-871c-cb178a8e38f2","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":163,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"ea7d0a15-a9b2-4987-8bef-f9dadc714192","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":163,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"4a621510-7ec6-45d4-8bff-7e7ff8ebb607","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":163,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"b2b04915-7370-41fc-b6e6-93bc0d55ea82","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":163,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"c730c3c8-ce4b-4ccd-b657-e9197437ddb4","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":163,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"37487fc1-38af-4dec-b75f-f1b694cdaa94","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":163,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"35820920-651b-492d-93e7-a7f63e90dcfa","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":163,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"08bfcea8-f1cd-46ee-8ab2-64bbaab11925","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":163,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"5aee5a19-2427-4850-b62d-0a107d76a8d6","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":163,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"0061ba1d-a607-4a77-9fc5-cbe1ec369e4f","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":163,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"75fc51dd-a034-4cd4-99d9-840d134ccd94","block_type":"box","text":"may be distributed by the Distributor.","page_number":163,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"9c518457-9705-455f-8bfd-1a49373d017f","block_type":"box","text":"Participation in Fee-Based Programs","page_number":163,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"98589601-36ed-4f49-a17f-ce52a0fded2c","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":163,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"325c2822-9944-4dbf-bb38-74c141a74a49","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":163,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"154327aa-bf0a-4f4d-8b51-67404bfc19ff","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":163,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"14e014bf-1def-46ba-bc12-afc5a6c3b65d","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":163,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"de21a08d-68e1-402e-bd70-db708abd0fdb","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":163,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"6b734a01-acf4-450d-af00-e57fd04acc4f","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":163,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"7a202772-5cae-4271-a835-dc18f97cbab6","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":163,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"1aa414ca-a959-49d3-99ae-4a9c316e1dac","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":163,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"63abb359-6cce-48c2-8160-4fb4bb4b0844","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":163,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"614b4c2d-6403-4c06-b950-bb5d32716938","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":163,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"f4dfeb80-ee19-4e10-b978-0bc324afbab9","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":163,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"aef79de9-d925-441c-9b11-696b60e8a22a","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":163,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"64db5d03-a7b4-4929-b7ec-d26186c26d4d","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":163,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"e0bebf93-2d3a-499f-9740-115a4b555026","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":163,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"f69b2dc3-239f-4125-aaa5-135b57e7dabf","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":163,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"887c6850-7fc8-4eeb-b8f8-f33933745592","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":163,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"21dfe803-6034-4d0a-9cc5-31970c265e0e","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":163,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"06f3c4be-f1e2-42cd-9f8f-851973b7b4fa","block_type":"box","text":"II-120","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b91e5b2a-d9d7-49a4-85bd-4e975747fbf5","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83369800-7761-4cd8-a962-ed8238a86d57","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":164,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"3de87455-b94e-45c6-8a96-6bc8d5d3d744","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":164,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"d9f1514a-91b1-4e96-bb81-b9255f1055af","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":164,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"8defae22-4f2d-4308-a480-35a1e37ff4aa","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":164,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"40b15319-4b31-4557-bb90-71d0dd2e6310","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":164,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"4df4b680-ed70-40a3-b595-aef42640ba91","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":164,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"77737e6c-31e2-4347-9ac6-d01f18ea2c1b","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":164,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"692f1d29-6440-4c82-8b32-fad378ab75bd","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":164,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"7010713f-ca55-4b3a-89c6-1af32a2544d7","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":164,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"9882f4ef-e28a-4496-ac68-1e55e54fae7b","block_type":"box","text":"information.","page_number":164,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"0d2281d0-796b-4a6e-ac26-93487f866f55","block_type":"box","text":"Retirement and Education Savings Plans","page_number":164,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"e8570916-e42d-45a0-88ee-5ef6597c486a","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":164,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"c5cbbc26-d0ad-4f34-a88c-2c714fb8a216","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":164,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"d6a2a837-8e21-4a19-ace1-eb75a12b90fc","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":164,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"775ab915-1216-44d8-8a69-ff4deeb3423d","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":164,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"9cf1bf53-65b9-407a-9913-8e07cbbbc6cf","block_type":"box","text":"your financial intermediary.","page_number":164,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"6a4e7ed0-a7d8-498d-b69b-669f2998a350","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":164,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"d6f719e0-4b1f-4e59-9fcf-6f62113ec626","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":164,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"dd9f4205-e5f6-404b-9560-a158fa4651d8","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":164,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"3d3c0943-3083-483a-a9ea-8b96c425fff5","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":164,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"2f7d35b2-50ef-43bd-94a9-5651a02d3478","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":164,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"b3372366-a930-46b0-ad27-6f16f2ebbf32","block_type":"box","text":"Automatic Investment Plans","page_number":164,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"28fc42ea-a61a-46b7-8108-9a3636527e48","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":164,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"640ae9e0-f258-443b-af1c-2556e23c8d0e","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":164,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"82da03cd-e6ac-47fd-88c6-58bb3d686162","block_type":"box","text":"®","page_number":164,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"7859c093-140e-4649-ac65-ac0150c3c086","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":164,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"ea32e59d-1383-45bb-93d8-72219eb532ce","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":164,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"57319012-ecc3-4e0b-8b48-42bd4d5264ba","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":164,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"58f8dcf0-ee76-4c0e-a654-09ad6b1392ed","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":164,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"13732c75-ea20-451a-a8e5-2b5767ec1bd6","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":164,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"a5561bdd-6fa9-48d6-bc7a-2c7fc5f76577","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":164,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"c5e6a0cc-b034-40f1-ba1c-40ee347976d3","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":164,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"03ad5c66-d9ee-4fc1-a4f7-9a2dd6cab964","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":164,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"93d67335-2da3-45c9-bdf5-d374882657fa","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":164,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"5daa8730-50d9-47ea-8180-e3546bacdfb5","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":164,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"5400c870-5dbf-414a-b48c-409cc1ae6d50","block_type":"box","text":"Systematic Withdrawal Plans","page_number":164,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"567e1d37-c507-4b7d-b09f-cb7b617ce1e0","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":164,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"4cdc1abc-3a06-44f3-b9af-17d8e46b77fb","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":164,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"e1af198f-c36a-4315-81cd-1581f8f919bb","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":164,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"1ab19407-01a0-45dc-84e2-d2dcc8f192c3","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":164,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"68f1792a-bb0f-4116-82e6-a0c912b32347","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":164,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"6392c321-daac-4939-bac8-2a0bf5432614","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":164,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"cfd3e902-6a33-414a-a30d-99467f8f11d3","block_type":"box","text":"www.blackrock.com.","page_number":164,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"5016c624-0935-450e-b2f0-a1102bf74540","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":164,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"f7a1c8ce-1d75-4f6a-b2b9-bf1237b55ec6","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":164,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"e70c01e3-1fe8-4474-b588-57cf424c8e4d","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":164,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"bd8fa325-a59c-4d18-826a-99eeac8e12ed","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":164,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"9253b35e-9155-4de4-85d2-32e218fd9a2d","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":164,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"6548059a-4c1c-42f2-be19-c12019758b0d","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":164,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"d0b18c4d-c184-474f-8bf5-9cb625a96bc9","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":164,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"e0ffc55a-16fc-422d-939a-ca4cc0cc725e","block_type":"box","text":"II-121","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"62c177c3-0fcf-4a5f-9cfc-64f4d2c12de9","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9623b87-11dc-4136-a3a7-9b8a72eaeceb","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":165,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"6ec73a6d-6197-4ba0-9a41-0f4e8f169593","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":165,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"e969f401-a243-4a1d-aac4-0971f5ea0a31","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":165,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"8185fcee-8f00-4221-82ef-9685634f7be5","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":165,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"b66ec067-8a1c-412f-baa1-1a88e106c759","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":165,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"a660bf27-169d-4e86-8c19-3a4d2862c7a9","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":165,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"0b16327a-5c31-450f-9329-2edb9097d5a2","block_type":"box","text":"Dividend Allocation Plan","page_number":165,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"13eacfa4-8447-4f58-81d3-9e0c076adfed","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":165,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"781be99f-501a-4724-bbe4-b740aa2555d1","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":165,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"d448570e-7a9a-4523-8b59-5de82d87061f","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":165,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"3f93e9af-09e0-40fd-a255-7c1bb0f149a3","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":165,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"f3579f14-af1d-4c5a-93d6-3009949b4304","block_type":"box","text":"PRICING OF SHARES","page_number":165,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"35a1a45c-068f-4460-94b5-0c7acead3d3d","block_type":"box","text":"Determination of Net Asset Value","page_number":165,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"126f0491-5926-4a3a-a407-28bf6bd4113e","block_type":"box","text":"Valuation of Shares.","page_number":165,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"f51563b1-0499-424a-ae7c-2313f187a17b","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":165,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"87ebede0-96fb-46c3-a93e-2f8b94276cc4","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":165,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"5e6894c5-0a68-4fb6-be49-17ef0d62100c","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":165,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"4076eb19-bf9f-47f9-bf6c-bba8e30f0643","block_type":"box","text":"Equity Investments.","page_number":165,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"fb2f5bfb-5ea8-4324-bc2f-c495f223ca78","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":165,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"6e2cb14c-60f7-4bee-abc3-bb0704efea25","block_type":"box","text":"e.g.","page_number":165,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"7a999c4d-bbae-417a-85ff-1fd7f06a4e36","block_type":"box","text":", NYSE), on separate","page_number":165,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"68e77f86-f976-45e5-ad1c-81e362fb5e07","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":165,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"d6245697-65c8-41da-a30b-7bae304f4c65","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":165,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"6249e941-0005-43fd-bdf5-2785eaf36c06","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":165,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"716a3826-3d17-4540-a0eb-bed87e03d606","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":165,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"844ab920-3dd2-47b3-81a5-0eb8196874c5","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":165,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"6a9aa69a-6149-4403-91bf-9f2523ebe900","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":165,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"86a1ecc4-01d1-4bcc-bfe2-93c6ca3a0a32","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":165,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"a9c21f60-3d8f-4fae-bc4b-54b72ebb386f","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":165,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"d81447da-b115-4cad-8a8b-222c96d88ba7","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":165,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"890f2cbd-be9c-4d31-a4af-c48d15cbf12e","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":165,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"0cfef480-02fe-4328-8891-61c456e22bc8","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":165,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"37b89b06-a2e2-4353-8f13-5c0be01e2e65","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":165,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"545acde4-eaa3-4392-8d65-a2605d2583a8","block_type":"box","text":"defined below).","page_number":165,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"6925d990-ffc2-4bf2-81b1-491242e78dde","block_type":"box","text":"Fixed-Income Investments.","page_number":165,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"e5c6dceb-7726-4593-8815-b73b48e75344","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":165,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"8ea1ed73-8bfb-45d9-98d8-846773057005","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":165,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"2f90b90e-c48f-4dc0-83bb-fcab1dce3e2e","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":165,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"ae902c29-631f-44d6-bc8a-906a18e92f32","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":165,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"c6bb1b65-654f-4229-afd6-b2c52c7725ec","block_type":"box","text":"e.g.","page_number":165,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"9fbf11ea-6023-4171-a2fe-eaff8b9507d9","block_type":"box","text":", recent representative bids and offers), credit","page_number":165,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"760e3b02-3e0a-4984-91ed-9e3977d0f0d7","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":165,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"290753a4-756f-4575-b794-877b78428289","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":165,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"d0cca67a-a50a-4936-b7ca-d2703d35385a","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":165,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"6d880d4c-944b-4af9-bac6-501d684a0b4e","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":165,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"f7dcc531-602b-45fb-ac99-e4c1f544caa0","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":165,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"f28ccc80-505c-41c8-a499-877b4acdbde4","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":165,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"9856a8db-3773-4ee8-ba29-113db1f478df","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":165,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"ba2a51e9-17b3-41f3-bb5c-00b91e16c7a5","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":165,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"eeb6a2ca-8590-4679-a96e-e0519783f033","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":165,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"53967dc1-8bfb-4544-839a-7af909223109","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":165,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"3690b06e-76c3-47f0-9e7f-100be729698b","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":165,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"efaa6ad5-d934-44ba-8b59-70479bc04b48","block_type":"box","text":"attributes of the tranche.","page_number":165,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"e300cd6b-f949-4bbf-ada4-ee4ac437faef","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":165,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"926eb378-1672-4279-8429-ac255e54b8db","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":165,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"a863c51e-1d89-4155-8fcd-8e9984b9b561","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":165,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"24d2b799-cca9-45a0-baca-be8d28afd8c0","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":165,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"51551dd1-0c23-4d1a-b4b9-dbe0b696e281","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":165,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"dda7582e-625d-4574-b87e-3c7ec5a0995c","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":165,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"ac908938-57da-4193-8dcf-33cf39053a1c","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":165,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"48c40342-0f57-4449-b061-386085eea294","block_type":"box","text":"II-122","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a855ffaa-755b-4c2f-9109-91d4aef1b90c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef593c23-8bec-4237-b13d-b35317c45bec","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":166,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"6befe191-65de-4a30-9619-aecddd9cb2d0","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":166,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"1b5dfd17-4337-42ef-914e-795f9b1548fc","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":166,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"7819ed50-084d-48dc-a4d1-4fc73f22baee","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":166,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"fe041cb0-31e2-4c38-93d3-e10969015f8f","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":166,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"71b4a137-71b2-4e11-9bb7-1038271b0bb5","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":166,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"91d56573-b390-454c-ad9f-fa19c887e2a4","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":166,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"1b2484df-e050-415a-932a-e5b7de874f64","block_type":"box","text":"Underlying Funds.","page_number":166,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"5fe15c2a-9f9b-464f-9bf8-9a4da41acadb","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":166,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"f9a9162e-6816-4905-8a10-4f2b637bbeba","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":166,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"491306a9-2190-4e80-ba38-8c1bf3d6c2d1","block_type":"box","text":"at their most recent closing price.","page_number":166,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"abc7c7c0-8102-450f-bac5-a2acfddd5b13","block_type":"box","text":"General Valuation Information.","page_number":166,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"cf0c9bc1-78cb-40ba-8c97-2594fb602d9c","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":166,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"0eeec6df-4012-435f-9ed1-877b308d619b","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":166,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"f68cc268-a386-43e5-a951-5c5182a830ff","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":166,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"05a20f02-33e0-46ea-a956-f07f0a27ff57","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":166,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"d30b6e3e-fe51-46fe-9e18-d198ffde701e","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":166,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"1d1a540b-8eb9-4038-84ab-02effc542070","block_type":"box","text":"the revision.","page_number":166,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"0c27574f-0f5d-468e-89ae-254c3319bae5","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":166,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"657e1e62-bb9a-45e2-8111-7c99aa3443b5","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":166,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"6b57d723-4ad9-466f-aefe-bbafe5034495","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":166,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"d3398dfe-2d03-496a-b154-5e031200d1ce","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":166,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"fed0b83f-966f-4c65-9efa-1a1703ffaccf","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":166,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"47c8e464-a246-4f56-b6a7-eab9067c664c","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":166,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"ee844dbd-eb05-42c0-a199-36c9d2576d0f","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":166,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"275907b7-b41a-4a29-95d6-33c59cb899d0","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":166,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"a15ebd13-b451-41b3-92ae-5b29ec8098d2","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":166,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"9dc2b267-5cb5-4849-9346-ad0463c5e97b","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":166,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"c5e43e77-004b-4561-8398-0245f3660d3c","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":166,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"fa7ec6b9-62d4-4cdc-a915-54da80b90b2c","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":166,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"8e665829-30f1-4bd2-a96d-94a4be286892","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":166,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"a806654c-7db8-40e4-83f6-5d3554aac1c4","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":166,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"034b30c4-43d6-4026-9203-ada09613976f","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":166,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"bd80e876-5234-4868-bfd3-bff447c02b81","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":166,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"3680135e-2126-4eb5-8b8f-bf2c1af3ce22","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":166,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"f7caaea1-56fe-4a5b-9cd4-27297edf852d","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":166,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"37092522-8fda-4668-9f84-915769784a12","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":166,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"b1eb0b1f-d7f3-424b-aaab-fcd1ac0504f8","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":166,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"2c67a6f9-ec73-4aa5-a9f6-4e3d2bda2d79","block_type":"box","text":"Fair Value.","page_number":166,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"673c7670-87c4-4cc2-b02f-409b5b1ad249","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":166,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"d38330fd-9b01-4287-95f7-7d09b1e5515f","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":166,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"2f6d2342-acc7-4182-905f-04bd4581de70","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":166,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"0cff7a1d-a62a-4e88-b7c0-25357adc9510","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":166,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"c47b8959-372b-4555-8134-3aacd719da60","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":166,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"410ff615-d8eb-4fb4-9cb1-e581523b7d18","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":166,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"a64b2d0c-77b1-484b-83ee-5a50502deb4a","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":166,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"62169c24-e8a9-4c15-931c-90457840e511","block_type":"box","text":"(","page_number":166,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"3f63732b-cc22-4df4-a270-2702be0cbee0","block_type":"box","text":"e.g.","page_number":166,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"8333ef3a-65dc-4802-9fda-40e4005a3bd0","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":166,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"cfcdb58c-f0e9-49e9-9d28-71113df899c8","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":166,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"9c22f104-fc57-4e08-bb0e-a005ea6b8596","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":166,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"8f9bd01b-f868-4e12-8e1a-5954d9162bd3","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":166,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"b0fd1452-8572-422a-b414-0b9cbbf42b6e","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":166,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"adb4e1c3-906b-4ff3-8916-b3153ae06b4a","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":166,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"8760a4a3-a87e-40ad-ba5d-2639ef5e0ed8","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":166,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"868634a7-0189-40be-ba09-6148c29cb42d","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":166,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"831a96a3-7d03-4c7b-8f28-6c2c063e6d27","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":166,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"6fe8a9b6-cd59-42aa-966d-ae9c8725d271","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":166,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"fd3c9e08-bff1-4d6a-86b8-2376a16d9a4b","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":166,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"91c1292c-1765-4b4d-9320-a8ac3bb0d45a","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":166,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"6a476ea0-82eb-4fbb-9e01-f970d7e99b78","block_type":"box","text":"II-123","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"19787bbe-848a-45fb-9262-1246dc5fb073","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90a9f0e3-1d6a-45c2-998e-ef1515b5354f","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":167,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"4b721587-737c-4f0c-918d-3ba5948d29ea","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":167,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5f87649c-ced3-4c4e-8961-a90161f5a817","block_type":"box","text":"pricing time.","page_number":167,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"2362df91-6884-4b49-ab1d-d904c2af425d","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":167,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"7fc20390-2212-412b-a5bc-4f25892d677e","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":167,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"dc778233-4add-4314-8361-3ae972638a3c","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":167,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"35cf36a9-0598-4991-8c0e-024c885d46c7","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":167,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"3bde5899-3a19-42b7-9303-8bf2306fa7e1","block_type":"box","text":"assets and liabilities of the Funds.","page_number":167,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"6e7039a4-5f25-43d5-90bb-d68b945c8814","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":167,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"f5f7f5b8-8083-4c09-96f2-20869bf7563c","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":167,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"56a38439-f864-4e6d-a1b5-4f5d8360dca6","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":167,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"19100cbd-3457-4d2e-9b7b-42ede7d7ce37","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":167,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"d0cae63e-3400-4f81-806b-52837686c066","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":167,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"d27f9692-6ee9-44c8-b4ac-10e6b86d8d08","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":167,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"128eb3e5-8753-4bf0-bd4f-bc8f76567270","block_type":"box","text":"valuation models.","page_number":167,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"48083925-790a-47d1-b2be-76e8e1742bfc","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":167,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"e8c5b76f-dc72-4952-8921-ef6711d4fe3b","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":167,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"900994e3-9aba-4250-a05d-b4fdf8f510bf","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":167,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"9dc03261-2d3b-48a7-898c-953028d35bfd","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":167,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"527f7826-e0f1-4017-bdf4-86e90ff1b938","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":167,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"917c4326-0ac8-44bd-b13a-ae8b58dae5a2","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":167,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"65cacf4f-2196-4e9e-ab74-2becfbf3eab6","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":167,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"76487114-7cb1-4c5c-94d3-e8606bc3f162","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":167,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"ad03d80b-4522-4e49-89ae-f498f35a7b1f","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":167,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"1c958f87-25ef-4b1f-bd95-cce0809df089","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":167,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"e46a0fa6-82b8-4575-875e-bcd487ec0c0c","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":167,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"4e6fa51c-3b16-44a4-8e65-203f822fbf11","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":167,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"e811d4d0-5aba-4503-b70e-0a390f76e47b","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":167,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"cb087a15-5714-4b12-8087-43976eac0e91","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":167,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"f79cc356-107a-445a-b24f-f5f29c2381b7","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":167,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"b023ba18-2000-4e89-96d4-c22efd91c3ff","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":167,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"50063f18-214d-41a7-9125-0d542f4addde","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":167,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"8f7c1f2c-43e5-41fe-812a-df6dd2bbb507","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":167,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"6a8683fa-abbf-4ddd-9027-914cf0db7327","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":167,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"ad9d6b3d-f510-49ea-8b23-11de70fcbab0","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":167,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"2b3a7c68-9a09-40fa-813f-dafd2381323a","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":167,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"031960c1-6145-4556-90c1-6be0ab7d2d21","block_type":"box","text":"par ty determination of fair market value.","page_number":167,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"15113b17-ae8f-419e-a2cf-30f473024983","block_type":"box","text":"Computation of Offering Price Per Share","page_number":167,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"cee06cf0-be87-43bc-a414-9d6f53d30a5c","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":167,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"05844044-d16d-4a13-b7a7-651ed7e8b308","block_type":"box","text":"the offering price for shares of your Fund.","page_number":167,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"d2e3dbbf-1f9a-47ec-8ecd-c41674726f92","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":167,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"258e73ac-76fa-4f4f-8e61-28d9742a32a2","block_type":"box","text":"Transactions in Portfolio Securities","page_number":167,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"93c3c5f8-b0f7-4af2-b685-0eab82b62f60","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":167,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"e18177a8-4e45-40f8-b780-252447368901","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":167,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"2c4f3596-f42d-49da-86a6-188c9c479589","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":167,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"df2ce185-ea1b-489e-9a5f-8de7400defe2","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":167,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"4149590b-1887-40a4-9531-c42d9ca7aa4f","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":167,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"505b802b-dbd2-4b9d-9141-13c356e48e82","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":167,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"286ea786-0e22-4920-88c2-4810c794ae42","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":167,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"f4e9d601-1c01-426c-827f-4027859d0941","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":167,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"3ea6c0c5-459f-4fda-8e6c-947b16b49863","block_type":"box","text":"II-124","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1cdd697e-ba4e-4fc6-94e8-f09f6c0cecd2","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52a504fc-2b0d-4033-b142-b045bacd1018","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":168,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"9620cdc8-4e92-4383-8ef1-b38f36da5a1d","block_type":"box","text":"reasonable in relation to the services provided.","page_number":168,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"980d4d15-f0aa-4200-a898-0a935b836e9e","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":168,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"ac317406-d5da-43cd-909f-8c56d2ac5c6a","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":168,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"7ae9e36d-d6ed-4637-a1ab-bcfb3a51074b","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":168,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"2a3f59e7-5131-4c1f-9250-108df394b6c1","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":168,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"6d8b8dbe-cd64-4bb1-b7ba-3dc55e8ece0d","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":168,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"1267e48c-7d63-4f29-8afa-3e069d4919e8","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":168,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"50c7f843-c5cc-41e3-9c73-82d5b1c66f30","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":168,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"90af136f-1761-4c02-b1b5-fcec3e5c562e","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":168,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"db5ead7b-182e-416b-b293-d81b4e3fadaa","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":168,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"49bc8f94-1452-486b-ba55-dcb5930f095e","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":168,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"f0ea6f00-c716-4b7e-b17c-15c88256f174","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":168,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"0a28e8b4-3f0f-433f-94c5-2818e9f7fe98","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":168,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"76fb6657-a2ac-4e30-bf68-68fbf02fc34b","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":168,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"243d131e-b52a-44a3-8004-546cad440ec0","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":168,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"d19e94b1-c40c-43b7-ab34-4cb9bf4c7688","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":168,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"c93e7684-b900-4317-8a6c-e8e4fc9a1568","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":168,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"729cc96f-57c5-4d13-b2c6-ff4065baccc4","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":168,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"d6b65f2c-7ff2-4ba6-b7c4-3519e071b449","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":168,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"84113f98-6806-4e55-b0de-faa807bff636","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":168,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"f334f123-a1ce-418b-8082-ad69b5638bf8","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":168,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"212fd2b2-51e1-4039-80f3-3280f8dc9396","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":168,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"b8361d74-116e-4141-8447-0181166062e5","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":168,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"af727558-c4f1-4789-8a43-1b822e65c08f","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":168,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"f7bd2e6c-9085-459f-a5ea-1b83fffb32ea","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":168,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"7d67d785-8e73-48cd-bb56-a8ea6d53e803","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":168,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"bb317930-60a4-42dc-8784-0e57902163f3","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":168,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"ed656b17-2ba0-4a41-b70e-2f0fa02d37ea","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"3615b47b-9952-40d6-8904-87806fa6bfed","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":168,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"8d2e6efe-d3c7-4da7-97f1-cc73bdd6d699","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":168,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"e8f3fcb3-e774-455b-b3e0-9cfc7d96dccc","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":168,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"d24e0f63-aaee-4edd-8ec8-7008622b7cf7","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"1c311fa4-1c98-4dfd-a7d0-e47e20f435f3","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":168,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"78adcca1-be84-469b-bc2a-adf7a0ec673c","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":168,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"7dc1e396-2dc8-41e7-9775-9f01d062d7f9","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":168,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"8116d08f-15f9-4264-bf82-dc34fee28a94","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":168,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"1b16de3c-2596-4283-a08d-e2bea973da30","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":168,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"3d39fbf1-ca8e-4582-a354-e96051134304","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":168,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"18d47bb0-39ad-4273-a533-c9a91f132f1c","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":168,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"dcca693a-ce3a-4f6d-8249-04857e01c9ed","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":168,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"370d4eec-df4c-4b4e-a8e2-d811697e2911","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":168,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"533b334d-3d92-4637-9062-6df54b727cc7","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":168,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"9c3cf6f9-92a1-4a60-ba9b-33f46ab0e3d2","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":168,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"9b78fa40-f02e-4720-be7b-98287ef4054f","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":168,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"f00e5ab9-f6ae-4cc1-8787-d1bef9395333","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":168,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"9ddcab64-0051-43f0-9f03-081f8b53933d","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":168,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"1bb72761-4985-47aa-b3ad-f2dc35ab4bb4","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":168,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"26724d8c-d4c4-4835-ae71-6325b702e60f","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":168,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"1554904b-6b96-4126-b9b2-a1b69647c7c2","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":168,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"3a2acce7-42bd-4fc9-9c32-7ca7187c041e","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":168,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"f11a3bd9-474e-4a8c-a39a-495488eb2c25","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":168,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"06a5aa60-d749-495a-810b-117794b1621a","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":168,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"352cf530-b946-427b-8b3a-475b9d5a5667","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":168,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"eb27ed55-578b-48bb-ad8b-04ae5374c7bc","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":168,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"828c33a8-4850-467d-ae72-2095c26205da","block_type":"box","text":"II-125","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2986793e-ee4e-46d2-b9be-3948839fcea1","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2a52ac5-7893-483c-b98c-796dd1337ba5","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":169,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"469e03fc-b654-496d-9373-9d134220c1a9","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":169,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"c6b2e08a-bc4a-4a95-8381-7b10f6f34745","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":169,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"17b710aa-441a-4038-bcb4-115f793efbba","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":169,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"5b980e41-b1b2-4cea-bacd-a2761dcdb365","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":169,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d75a5959-b8a9-4b5d-b38d-69bca8741851","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":169,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"582eb690-b2d2-4814-a0e6-b7f504cb5669","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":169,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"78bfcb21-813f-466e-a043-12f64d34b36c","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":169,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"4744d0bc-94a8-44dc-972f-b619369aaaef","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":169,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"5f3818ab-2d55-4bc8-8ac0-7a27c25282b2","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":169,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"1dbb6066-28f2-41ab-a6fa-7f1c346c354a","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":169,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"d79770b8-5360-4d10-969a-f3952454d994","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":169,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"3344af38-f047-4e62-85b3-2bc48b0fd860","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":169,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"a89d8d38-9df7-46a3-b920-81033bbd5992","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":169,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"f8ae7ac2-c854-4d9f-8e4f-e424812a3768","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":169,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"2d306dd3-5f52-4855-a9cc-2c828a36e9fa","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":169,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"054ee9a7-4daa-44a5-8384-c56292c49899","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":169,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"855ebdac-9387-465e-9970-2dbc80cfed42","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":169,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"395f54cd-ea20-46bd-bec2-cbca5a64426c","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":169,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"d57dd460-600a-46f5-a25c-d6c451a02d5a","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":169,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"02e87715-e16f-437a-816b-382ad58a39a9","block_type":"box","text":"brokerage.","page_number":169,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"19c3c053-d0b3-474c-bd2e-a1fa372ff75b","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":169,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"295c6f31-b574-44d9-a4cb-9eb3c115a4fc","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":169,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"00b20c0d-bc46-45b0-9931-6353f2fd2af6","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":169,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"54a8c867-3425-472a-b2d8-02b611833972","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":169,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"569e6aad-a730-4373-9fff-400fde1cfc48","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":169,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"56e74da6-c293-46a4-86e9-6f867476b6b6","block_type":"box","text":"Section 28(e).","page_number":169,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"32d58061-25ac-4d86-9690-da47ac19ad75","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":169,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"8717f101-aea5-4e12-b852-1f51a878c92e","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":169,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"0d1dca61-1fb2-432a-a921-e423a16e82be","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":169,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"40fc27e5-c940-40e9-8da8-2857fd503cb1","block_type":"box","text":"execute transactions for those mutual funds.","page_number":169,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"9f6321c4-7bd3-4fe0-bf6a-ef6347242e86","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":169,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"449d90ab-e951-4810-a50f-ff2e4d6fbd4d","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":169,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"29db887c-cc78-4a89-a482-86618e027f22","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":169,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"9268b063-5aa2-4d8b-aac7-97ed09c5a90d","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":169,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"d31c5f11-919c-47cf-bde8-3b3b9c7f7a79","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":169,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"225e23dd-054f-4fac-a3ba-62efaa563c54","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":169,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"9bdce466-6013-48f3-bd79-b7fae0c5b5d1","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":169,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"73700b28-2202-4957-92c4-1fac8004ea4b","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":169,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"c6beda43-6046-4add-ba6c-98061cb8bf29","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":169,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"169dde9c-a88f-41f3-86a7-324fc0d51ca1","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":169,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"9cf54842-86ea-452b-b0c4-aa3da54d5bcb","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":169,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"a626dfa2-46e4-4e60-a089-6dc082c3c99c","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":169,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"7a1a1e85-d74a-4583-a9f4-d5d51d446877","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":169,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"723a7105-ee9e-41d2-a8cb-8c690263d0da","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":169,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"9f32a5dc-547b-446a-9745-aa5a8a5cddb0","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":169,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"b224449a-6ea0-45ec-ad14-8b4de9882cda","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":169,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"905815db-95f8-45c4-9791-d5d59344ff69","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":169,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"fc125991-11d3-41a2-ae74-8ff76dc3dbec","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":169,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"48f72a49-f234-4e5f-97e9-f448698ed572","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":169,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"4227193e-f668-486c-9f15-bb2224065902","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":169,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"8d11d8bb-3c4e-47aa-94af-2d3aa3da560f","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":169,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"3205ffb7-62de-4d0d-999c-be411b8c7b66","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":169,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"7482dace-d301-4f71-8a12-f7483fd48060","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":169,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"a79699b1-33d2-48d9-a830-7fd35f8cc2dd","block_type":"box","text":"II-126","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e2dc159a-08fa-4af1-b7dd-af683bfccc12","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a934d19-f187-4e4d-9a81-89d45cb0db72","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":170,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"e1ba6870-aedb-4b13-b760-693c7abfec0c","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":170,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"17a02cc2-e107-4f03-b609-2501ad841d9f","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"821efbc5-449b-426a-8ed9-c968508fc9c2","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":170,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"e7101ba3-2c70-4c6b-800c-468e22ec8704","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":170,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"c50003d8-5cb7-4bf9-be00-cceb3a0c75e0","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":170,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"2aaef873-f93d-4de2-ae50-664c7fe5cd00","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":170,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"0af226e4-c257-40d3-bd3e-d5b0a42c4f27","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":170,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"e68ebd65-4543-4399-b8f0-53a070d800db","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":170,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"a191acd7-f30f-4add-9efc-eafa9e967058","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":170,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"5be9ce4b-9340-4b52-939c-02599760a683","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":170,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"08756d7a-6c8f-4f27-82fb-b837c5fe640a","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":170,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"08227ac8-2e12-43c4-a297-ebeee34efb93","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":170,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"7b721527-eb1d-4233-82dd-630a7427fa64","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":170,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"28d8a38f-61e2-4d2c-b890-1e39c3761f2e","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":170,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"cc7ced21-57d3-4aac-b7b4-5e2be9725794","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":170,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"2648b153-d427-422f-8f24-ef43aa6d80e3","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":170,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"bf38cdf0-2d9d-4e18-8226-a5a8b5e6cdd7","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":170,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"773fc809-522a-4d9c-9d79-a6e1241b0747","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":170,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"6f650a05-f586-4228-96e1-ac36c2803cbe","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":170,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"1518074c-fc36-4ccb-85ce-2fce34715711","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":170,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"da8c7e12-7c6a-4a83-ba44-95ba8f72d601","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":170,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"c60c9828-7d54-4b70-9f73-52674bac3d85","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":170,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"8cdfd985-7b67-4a89-afb5-62fbaf47cd4b","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":170,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"5b46735e-4553-4302-997e-4d41783a917d","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":170,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"c5286aab-2c9d-4cd2-9e07-24c4f1580308","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":170,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"22a93710-ffc8-4ae2-ab98-2e2c847364d5","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":170,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"8975713e-d1da-473d-933e-99748ada9c7d","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":170,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"9a5d0054-23dc-40ff-87c4-f8d0c15649b8","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":170,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"4486632d-342d-403d-bff9-102dc8c531f3","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":170,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"8208bcc5-562d-4b88-9bef-f4f48cc4ae9a","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":170,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"32766022-0839-45ac-9efc-8ac18103fe1d","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":170,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"a3570811-3255-4f8e-a449-e133755f426d","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":170,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"20ef335a-1196-4515-862c-0529b764bff2","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":170,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"bb5b765c-b90a-46b9-b5c0-8acea04f4680","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":170,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"61ee05c0-4b99-45ed-b374-e44cb872fc6c","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":170,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"50bb3f81-5aa0-49b0-94a2-897511f60980","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":170,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"5966f761-bc95-4c96-846d-aa3b10bfdadf","block_type":"box","text":"accounts and compliance constraints.","page_number":170,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"983c55ef-8122-4b55-b365-a0ed478c816b","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":170,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"f24e9ca6-f18b-44d9-815c-c89d6f74fa95","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":170,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"bfa0e19c-c3f7-4c00-ac7d-4c9931f00a78","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":170,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"ab3fb40d-2e4b-4bef-b834-7e67c27d2e58","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":170,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"683664ae-edd8-4639-b00c-139c0a003bd6","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":170,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"0e5ca51b-b338-48cb-a7ef-053c4563219e","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":170,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"82e9cdd1-a384-4e88-b3f4-2362d5485e01","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":170,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"531afa16-d836-446d-bfa4-d87232ad4552","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":170,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"3b2aff42-a117-4473-832e-5fdf1f015e24","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":170,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"688e3aef-b37e-48e6-9388-0612a0366a1c","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":170,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"8ce52096-2679-43e8-b884-c790b7bc685e","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":170,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"a56f6cf9-8c53-4e3a-a009-b23605abea28","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":170,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"43680a8e-6e7d-4e2b-a01a-ba341b8e521b","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":170,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"126a6254-4379-4134-94b3-9cee62891262","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":170,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"7d4c39c9-b4cb-4c37-8595-11d9a0a046ef","block_type":"box","text":"clients may be used as well.","page_number":170,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"681186e6-6713-409f-a2b5-629caaeb5dc8","block_type":"box","text":"II-127","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3b978902-82b7-48fd-8095-8aea13df661a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d6d1154-da31-4c29-a009-5d9ad8af18e1","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":171,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"9d9eade8-efa2-42c8-b706-dfc1ac8ee5e3","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":171,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"b223eb0c-adf4-4c28-ac1f-e57aa480ddb8","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":171,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"61b481a9-8731-453d-ace9-91a954c821de","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":171,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"3b105160-64a4-49cb-b2ca-136d07b1b35d","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":171,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"41a111a6-8f86-4d9a-912c-133916ec9217","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":171,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"347b11dc-282a-491a-b6b4-785875b08480","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":171,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"6257555a-858f-421f-8b67-6e9c7b4a0e1d","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":171,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"8367d1f3-1173-4435-ba83-35428739d69a","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":171,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"64a71fef-dc8e-4da1-83cd-412979a96959","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":171,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"45d1ebdd-d9e0-4581-8826-8011e06bcf78","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":171,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"51f5e541-38c5-4bfe-9d1e-8d1a5e774385","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":171,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"1600f734-dbe8-4f29-a0db-f8820329c634","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":171,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"7d27c1a1-21e6-4117-9cb1-6ff08fc4dd64","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":171,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"9a662b03-713f-4278-9bc3-851e542d52c8","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":171,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"3d8636c1-42fc-4743-96ec-d472dc1ab03a","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":171,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"e78f5f5e-e175-4e3f-a723-ea5fd31ea34c","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":171,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"97d08a40-d6d4-4633-aac5-81a3ccf44bd9","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":171,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"a7bb1983-8b21-40c9-b373-c665f258a262","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":171,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"af2153bb-db08-4ae6-9c90-bcc686e2efdc","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":171,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"e4655ae9-7547-4f1f-845a-710c19037171","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":171,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"a9dd2a20-d204-4899-bf8d-b354c6a6a115","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":171,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"a1e84d59-5088-479d-a389-70659c804f68","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":171,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"a240c0a0-e656-454b-ba3d-2ce64c66167c","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":171,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"c010059d-7a55-4196-9a50-cec4a3db84ac","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":171,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"9caa86d5-39d7-439e-b680-a848bca81727","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":171,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"bfca844c-84ab-4a92-a852-6985a73a6419","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":171,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"d57d3b93-fcd9-4fcb-9ab8-3ac7abf5ee40","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":171,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"815d7204-811c-4d2e-ae2b-cc198dba4cc6","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":171,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"59a5aa5c-77f1-4b18-8b4f-a83e7c196dfb","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":171,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"eb85bc72-fc2e-44b7-84b7-f931c38835c7","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":171,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"79ceb38d-75f5-43be-a595-1176dc129df5","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":171,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"38a763e2-ca4c-4bde-a122-7627eaa2be09","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":171,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7a2e8c88-2d44-4113-b038-fcbfaba8f73f","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":171,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"013bbded-ee7f-41da-b1e5-bda79e7579f6","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":171,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"485e026d-94d1-4de2-a013-58541da91c1a","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":171,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"edb15d1e-8c35-4468-aef7-7579e20af43b","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":171,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"da19f09c-321c-4ee0-b5e2-db4d757f5109","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":171,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"16e62c85-e952-4eaa-9749-283c158f5b31","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":171,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"9b6f1985-4adc-47c1-bd58-fefc270d6669","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":171,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"f1925dd1-4bb1-4b6e-8132-56f4431a897f","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":171,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"450e67fd-9cdb-4f21-8c1f-946b4f135368","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":171,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"21c68bbd-9713-4509-81a2-dfde601085b9","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":171,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"89e1eae5-b26d-47fd-861e-e5c1ad01fab9","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":171,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"db6c597f-5e2b-46a5-9adb-cc59c5ee9c10","block_type":"box","text":"Portfolio Turnover","page_number":171,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"a193a44f-42cc-4cfc-a3fb-6156f4099646","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":171,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"74b0e319-d7a0-461e-9033-e80e3d8c6266","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":171,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"ffa9aeaf-dd3a-43d8-80d1-11ba196cfa9d","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":171,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"ffc63f20-a74a-407b-a19a-16b40496ffc6","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":171,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"d2f19f6c-9b1d-4aa9-aa27-cc3373c74855","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":171,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"21a633eb-5ff5-408f-91a9-8c1abbcfd5db","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":171,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"6c86dab3-0217-4664-a6a5-a4876e8d9b6e","block_type":"box","text":"II-128","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f3d927aa-46e6-4e66-bf04-f1668003337d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa51cda9-aa76-4870-bf5c-cc4b2ec74e80","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":172,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"3ea2f20d-5a44-4dd6-916d-4dd0d32b4c4d","block_type":"box","text":"Dividends","page_number":172,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"5e3ad91c-be8b-4cbd-99b7-3dafe566510e","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":172,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"535498a6-c6b4-4daa-bddd-3fef00fed18f","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":172,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"c78a4d40-87e5-44b3-b034-5e800acb3e59","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":172,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"92e13070-aa39-4f2d-ba90-f2d89141fc09","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":172,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"2a53f560-363e-408e-9cb0-3adabb902964","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":172,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"804ec7cf-b138-44f7-965a-e2cc578bc8c9","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":172,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"e1e39ec1-cf9d-4a6b-8631-a8f5c315af95","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":172,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"1b36371e-bc20-4889-8188-7995eb5169bd","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":172,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"18d1e543-5b75-415e-bad1-e2fefc9afe8e","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":172,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"df5295dc-d0bf-416c-b0f4-5af5933104f0","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":172,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"3f749f1d-7738-4589-b972-93c603ccd6df","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":172,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"c0a02099-92a0-43ec-9b82-c2ac2f386bf1","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":172,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"fa615423-4b6e-4e3f-bfb3-cc599bf428cc","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":172,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"a92cbd97-d0ea-4f8d-b8d3-c52eeeec78fc","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":172,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"df766ef5-0c13-46ba-b88d-3930cd1c9af1","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":172,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"358e9090-afb3-4f67-8511-f625749cff59","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":172,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"2b86fe0d-156a-4e7d-ae96-b824fcba1376","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":172,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"d401e6f0-d967-4197-be6c-46b57329f49d","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":172,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"3cbe1865-d82e-4419-831c-a2634a82b4fe","block_type":"box","text":"Taxes","page_number":172,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"26cb12fa-eaa9-4e2a-87ef-67fda4b56b73","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":172,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"83f6996e-f4ad-425f-b5cb-eb6ca2066f99","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":172,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"5d23e731-b8df-4f07-946b-6419338c2fee","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":172,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"fa85a2cd-e1be-473b-a057-475d6bd65206","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":172,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"342f5ba4-c614-48a0-8dc0-8ae6e8d6ca77","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":172,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"792222de-d9ba-48ed-9aab-48979b3e4688","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":172,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"96489b37-824f-4d5a-b211-e76a9409e860","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":172,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"2046c44c-302b-429f-871f-7233266b5709","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":172,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"b53f5cf6-b44b-4538-bd39-c3b03b897fe0","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":172,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"aca883ce-b919-44de-93e6-5de3f0e89112","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":172,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"2a121f3c-d479-44b4-9ac6-714a01fd2e2e","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":172,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"d363ae49-c672-4422-ae60-6852e0b486ed","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":172,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"4a6f087e-1607-4f3d-bf04-e22f837e0987","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":172,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"3b8f2dcd-0a8e-4142-83b2-b26909a7af8a","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":172,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"bbc21195-617b-451a-8eee-a72a27562fb8","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":172,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"8cb391e9-6573-4826-8186-394de2f3e817","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":172,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"3cee07fc-0088-467b-b88d-10d5c1a6a6dd","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":172,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"4efd8c09-25f5-41c8-8a74-1ba4c74a20ef","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":172,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"d8070846-7c87-4d77-ba08-5d5b13ee739d","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":172,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"1ba95706-477d-45f7-b776-987e6360b3e8","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":172,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"9ba9cc97-326a-4e84-97fa-d7b6ca41eebf","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":172,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"90a995ae-4dc1-4d54-8acc-ed8e710d3bed","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":172,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"922b144f-a980-4912-bc3e-eb5e698e8481","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":172,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"69893220-6676-4714-9fbf-799d422eafd6","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":172,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"896f17f7-98a2-40dc-a2c5-8babc6cb64ab","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":172,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"51dc0867-3509-4fa8-a0ba-cd44e609217e","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":172,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"77f9113e-76c5-4fa0-b890-3068bf0e0bf4","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":172,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"678fc635-677f-4932-b9ac-70e8e4a2540f","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":172,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"650d5700-2e8e-4d05-be5d-44cdbd622389","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":172,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"137c063f-d95d-45c3-95b3-1082a6743a39","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":172,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"c02b0214-30d0-41aa-a91c-141eb9d8d6a4","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":172,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"62d47e52-0b64-4489-88b4-7a9ad95e27b6","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":172,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"3c3d6afa-a400-4b2d-aa12-e4e25b17db11","block_type":"box","text":"II-129","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"86b96ef8-bff5-40c9-bafd-38bdc4a13f36","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27593c85-3e79-4b31-a16c-e159131069d3","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":173,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"45dd8c7e-917b-4456-83ce-4c1bcd1ba901","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":173,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"9db8717e-c884-43e7-bfaf-efe8c401d8f9","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":173,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"131bdabd-3259-410d-b928-bfa924c8e806","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":173,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"6be02ba2-e276-4f3f-bc63-280e9c539a8d","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":173,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"1db940d2-9b5d-4e3d-a2e4-6c6c7b502d18","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":173,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"3cdddf0a-9735-4d59-b733-f0789efbf746","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":173,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"7e2ae221-fe41-4c24-935d-ef00b7d802e6","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":173,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"4da9e15b-c831-4ff4-8aa1-d1e8df7c1e51","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":173,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"ec829dd3-a6c9-4d58-9c01-8ba8e27b22b3","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":173,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"64e0206a-3b12-4421-94f6-be573a53f3db","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":173,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"06d30b2f-5da3-4b0d-8476-aa791a3d764f","block_type":"box","text":"limitation.","page_number":173,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"c0c1de12-65a8-4f0f-9408-e8b152d01c9f","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":173,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"52c71d94-d14d-4226-8e66-266dd1c2e3f7","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":173,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"5b9b333c-222c-44ac-a7e9-df1f5350508c","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":173,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"9846570e-8451-4d5b-b6eb-69cb688cf009","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":173,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"2e2bf930-6142-49d0-8482-a038e267c811","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":173,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"26d71d5a-4bd9-4cca-b3fa-7f579bd22d65","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":173,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"7ceb40a6-5bde-4cd8-8898-5948d0aeac7b","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":173,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"9c3ff133-8dec-445d-924b-771a4b6dd98a","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":173,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"b0a381c7-6b5d-4293-95fc-66f96edbfbb1","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":173,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"e1855da1-25a1-4814-b860-ef6c555bca5c","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":173,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"54fdabec-8a53-413b-a4e2-048df32b6773","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":173,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"066ce1e3-bc4c-4fd6-8376-20000ccc35b7","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":173,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"02fb46ee-0fae-4efe-997f-659fef6d4a95","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":173,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"9c5c9c4d-7cd2-42b6-91a1-89e5bbbe0a21","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":173,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"47503938-4398-4f0c-b182-954808a3fea5","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":173,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"e88a297d-f1b8-4bd8-9360-9df0be9779ff","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":173,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"934a444e-034a-4525-9cb5-060152bc6095","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":173,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"ef064bfa-3d81-4be2-bbef-df419e5b191a","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":173,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"5f98c245-5e37-470c-ae40-b18cd1c32e99","block_type":"box","text":"constitute “qualified dividend income.”","page_number":173,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"3af2020c-e591-4ed3-aac6-bb72e1a8f449","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":173,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"ff5a9442-d916-446e-8f89-08599d2e871a","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":173,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"cd03470e-8dab-4139-b080-bc28e473740f","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":173,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"416337af-eba4-4974-a193-995c38e32aba","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":173,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"9340554c-23f2-457e-ad78-86946f243374","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":173,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"a2cd758f-2962-4f4a-8194-64dae5981a71","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":173,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"3372a3b5-0225-4f96-800a-e10903478c75","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":173,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"d5aaf208-1d7e-4aee-a3b8-5a3be2ad1025","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":173,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"592a5d4c-bddb-4456-a738-f8e206456b09","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":173,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"529f2374-0cc9-4902-9591-11cc7a62187d","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":173,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"23df97fc-8b92-4187-a426-003329a15e8f","block_type":"box","text":"against their taxes.","page_number":173,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"d6a2e0fa-5794-4443-95c8-af2574653eb0","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":173,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"fd6c1a99-d0ee-45e6-a434-61f448dae3a5","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":173,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"46d7852f-1e58-48b6-bdac-735ad7a183f9","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":173,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"6c68f4f8-76a3-4f35-bc4b-832b2b39f65d","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":173,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"83ca8af9-6242-4b23-b0fc-564eddddbf1c","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":173,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"ad1bd400-539d-43f7-bcc0-bd5e0358d2fc","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":173,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"1c57b142-a0e0-4bef-8204-95c544a80e57","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":173,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"85d0facb-9952-4ffd-95b8-bfa15df42b3f","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":173,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"ba093c30-f8d4-4ca4-b312-4db8d1c335fd","block_type":"box","text":"dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"455eae73-2ff2-4a4c-983d-fa115093f2b3","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":173,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"0df27c99-3a2d-410b-9cf0-68d79d1fdb23","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":173,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"514699f6-d67b-4cb8-9739-f5ae1cb9989f","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":173,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"dbe13411-c327-45d4-9b9f-c539ca59dae1","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":173,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"7ef8cb03-3bd5-4ff1-8b7d-24e026073970","block_type":"box","text":"II-130","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1466fe7f-28bc-4530-9026-2eafc28cf9e9","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"304eae37-8e21-4ac9-ba6f-e3810ba1bcb7","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7095f95b-67cc-491f-9574-2d7ed6136be5","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":174,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"bce572cf-a1ac-4869-9647-23a5be51f07c","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":174,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"11904f48-254f-4c3a-ad2a-673758a85411","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":174,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"430c11c2-6c50-4744-be0b-461fcfc86855","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":174,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"6992d571-adaf-4425-8cff-728281da869f","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":174,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"60151f2f-4f7e-450a-9194-86cc620fee9d","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":174,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"c30afaa1-eda7-4ac2-897a-c2e060214118","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":174,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"22b6a255-cfa5-48d5-8345-9e0e309c6d67","block_type":"box","text":"taxable year.","page_number":174,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"93cd0fa9-7e2c-4f4d-bcd2-98f120906e30","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":174,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"d0b62607-4eb3-48e1-9dd5-dfc4332d92f4","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":174,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"00734dc5-1f20-4d8b-8a33-c4ab4831e97e","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":174,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"6096f62e-e7fe-47f7-a652-cc85e06750f8","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":174,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"a6b247e2-ce8f-47c0-a793-62a38619b742","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":174,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"1f84cc64-d170-4f4b-b1e3-8b023c8b3694","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":174,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"775ebf1a-755b-4862-b6d2-66a0d637456f","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":174,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"2aa5cf75-4847-4923-92e6-d91e65efe72b","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":174,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"35510bfc-6344-47ca-a71f-c92cc32ed3a2","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":174,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"edc2c240-3dd4-4f8c-a750-009008c55c06","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":174,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"40b74673-3c33-414d-a746-1fc851b9fce5","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":174,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"a2e09684-dc9e-441b-a6a0-ab1410900fb2","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":174,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"1deac78f-8da4-48b0-8ac7-0a8ff1c37af6","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":174,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"78a5db8f-773e-49e9-b9ca-48b66e53b610","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":174,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"dabde330-738c-453a-8b4a-12115c5cc9c5","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":174,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"60c768ab-b118-47d4-ac9e-2a6d7a7edf2a","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":174,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"2f7a0e3e-6ce8-4669-86cc-338c4bbf31b3","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":174,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"75d692fa-d89e-4c7b-bc78-3f4e111a4091","block_type":"box","text":"special tax rules that apply to their investments.","page_number":174,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"f49738b7-571d-46ef-a51f-c8a2c5572a06","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":174,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"b318b14f-9b41-46e0-acf2-8a4a268aa3f7","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":174,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"c461bd8e-5fb9-47d0-888e-28d560e710d8","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":174,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"e88279d3-cb0e-483d-89c9-4fe951fb0845","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":174,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"c1549062-bb34-4bfe-8ed7-901914d838fe","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":174,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"c94bee76-61ad-4d7b-bab6-91257850a2b1","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":174,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"ae52c7d9-a18d-4794-9670-63b468c65fa0","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":174,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"e6b18949-8f43-4061-8a56-b949fd2270a7","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":174,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"490f5107-d63b-4a94-ba4a-90646b730f2d","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":174,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"1580aaf5-2e47-490b-84f6-c2a8a3492931","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":174,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"4e978df4-91c4-4f95-a24b-fcadacc12f17","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":174,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"3c0f1003-3823-43b4-840a-7e2c69599370","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":174,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"636df75d-bc21-4c56-b288-34c4f438525a","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":174,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"b71da061-570c-495f-81fe-83d6ee7c0f83","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":174,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"e1b17035-2d64-4054-906a-3357906913cb","block_type":"box","text":"redemption of such shares.","page_number":174,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"92d331ab-eaea-492c-ab4f-d274d04b4693","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":174,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"782f0f66-f9b7-43af-aec3-ae8f9c9a02d2","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":174,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"f49e75ef-1084-4e9f-8a2d-4870bdede27f","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":174,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ae98a54e-3ba5-4ae9-a8c5-eceb38cd6c12","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":174,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"0e5c94ab-a5e9-4dd1-86dd-e2d1c2bc674c","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":174,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"a9cf7e98-1c04-40df-a442-ca61728d1155","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":174,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"9379e3bc-17bd-4945-a845-ea88280a54c4","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":174,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"71270f76-ecfa-4ee1-9758-308f68ae047c","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":174,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"3d1f9c3a-c2aa-4666-89b3-d552b2ff0de5","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":174,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"590508cc-c3ee-4840-9a86-a41926f4e3e5","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":174,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"61ee5f17-6dd7-4264-a912-7ff20f5537e2","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":174,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"8feacfff-b635-4995-8a8a-1f02d93dcc88","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":174,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"daf8c6e2-4b1c-4215-acdc-66fe60858e7c","block_type":"box","text":"II-131","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0f37f87b-98cf-4613-838f-66a5a2edfefe","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91c28a7d-e343-4d98-9195-97847782559b","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":175,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"486e87f5-251c-4c2d-b07b-db1c1208b0f8","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":175,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"3b4fe031-5ff6-4f63-ba27-7d69fd239aa5","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":175,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"d490a28a-32d8-48f4-aa4b-d8e0c5910d30","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":175,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"3b1fae84-00c8-4f34-bf75-6ccd2da56709","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":175,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"82b61d57-3a02-46bc-a35b-ba90c3c7d0cc","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":175,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"c631c238-bf44-45b4-b7e3-565892b249e0","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":175,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"f8712bd1-0a52-4d8a-95e0-9c750d6d749a","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":175,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"72a0ac2c-2de7-4ba5-abd8-5b1635c5e3e2","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":175,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"ef481363-7c46-4ec2-8b9d-78e09075d0b0","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":175,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"82ef97bc-6e76-4ae3-8d14-1421c02847c9","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":175,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"cfc3a930-e0da-4856-b074-b0309979b63d","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":175,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"c5ea561f-f8aa-4f24-b69b-3f55b857b3af","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":175,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"1ef72677-9293-4e63-b506-8b6626ead4d5","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":175,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"b4d0c35f-47f8-4800-815b-1e1d5a4c9800","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":175,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"a9df19ce-d110-4081-be38-78530a953c4f","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":175,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"80499bcb-bb2d-498a-98e8-6e0c1f22774d","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":175,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"58232d38-4fbd-4a46-b4f0-75b1a74f0a03","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":175,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"6582d987-a41c-406d-94bb-05ed86372c08","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":175,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"685483ce-904b-42dd-a1bf-f4b281eb6602","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":175,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"446a6c73-7e88-4948-a99c-2bddadaad794","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":175,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"022bb2c1-e963-4af2-9ab2-fab0820ab6e3","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":175,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"9e36a3d6-5ae3-485a-8c09-d8371d24843e","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":175,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"f9399e12-cab5-4e23-bd85-39895c34eb6a","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":175,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"a01d2160-cb21-49dd-8d73-9ee578937a50","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":175,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"6c8b9dc4-31aa-43c4-b327-2c825be88799","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":175,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"0b66bc9a-5bfb-453d-b6e1-02412cf765cf","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":175,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"8dcf3830-f970-489e-aaeb-81abe491968c","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":175,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"d719e562-c77f-4915-9e7e-55dbe30c9270","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":175,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"d468714d-e759-482a-9e59-637f036095c2","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":175,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"abb72b02-fc53-42b8-8bde-408db0946219","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":175,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"15cbaf78-3c87-4b29-a396-9825f4de1f6b","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":175,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"c8d2751d-4b6c-42aa-ba34-6531fc7ad381","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":175,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"a2b6efa2-fb19-4276-850e-9d133119f050","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":175,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"4180a562-5711-447f-ba2a-1c3c79200461","block_type":"box","text":"in subsequent taxable years.","page_number":175,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"920ae404-6e4e-4327-a712-8deff7d03788","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":175,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"1d142df8-afb1-4e87-aab4-299de0083cd6","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":175,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"612de967-ec77-438b-8513-eda3f5d484ae","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":175,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"c6192ef5-44c7-4d14-b445-3d124999e3db","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":175,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"a09f9a76-3676-46b5-8833-bcdd46d6e3f7","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":175,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"de654732-1629-4052-9678-1679f7d59bc5","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":175,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"ba604fe2-9809-48ea-92cd-5d9dbb43e28a","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":175,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"075d7c57-13f7-4e85-9847-dc7a4b9ad3ee","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":175,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"c0e3951e-48ab-4903-a391-f7b92266e5af","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":175,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"475b1601-142c-472b-9990-c397d835aa5f","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":175,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"406b3292-984e-4ea1-9b49-d2d1404a20c4","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":175,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"3dfb0f59-99b5-457c-ae5d-faca4e7edae2","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":175,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"bd088eda-5c51-4284-8f93-e8ee39e32c0b","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":175,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"905322c6-4e0f-4103-b300-36beb0a2c54a","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":175,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"34dc04ab-1e80-4a03-a6ff-b60bea801276","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":175,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"d1378f48-0b50-4d99-afbc-fa39d5f9584d","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":175,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"c78697f8-2069-497b-9574-d789357cb729","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":175,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"e6a0759a-93d3-4c89-8ea5-530c5d2c05ce","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":175,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"9cb875cb-85aa-4a18-935f-71901af36250","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":175,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"87b47631-fd32-430f-b705-5625c533befe","block_type":"box","text":"dividends under these rules.","page_number":175,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"ef945a2b-48f7-4c9a-839c-3b0c24fe5230","block_type":"box","text":"II-132","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"09a40b49-cf96-4218-90b5-e741b8d8a8c6","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92b59004-5cc7-48fd-952f-453fba82a7bb","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":176,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"4ef83671-452a-4735-9d82-87562d79e972","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":176,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"7a530da5-0aee-4fcd-834c-8c170a1729bf","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":176,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"63011a7d-5e98-48ee-ab91-ca411a2a63d8","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":176,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"90be65cc-c1f1-414e-a436-2149ffa28c85","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":176,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"29b989bf-4e78-4527-b29f-fb3e19afe27a","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":176,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"d73127ce-b7ac-49a8-92a5-80592850a2e2","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":176,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"376e06dc-c6a3-43ed-8684-0134b5cafdb0","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":176,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"0c090dde-116b-4201-9d8f-8b3786071096","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":176,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"0ac5f714-f2c9-44ff-b36d-1f5a34666e06","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":176,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"176f1221-592b-4c01-af64-6d77f941f6af","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":176,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"16de1a29-da14-4d98-8861-a0e0fd64011a","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":176,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"5a415d09-ec6f-469b-bd5f-02648f6fc1d3","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":176,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"691988bd-f7ae-4fbb-9e4d-e2972059d9fe","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":176,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"9a9b50b9-bb59-4847-b76b-953fc839e3b2","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":176,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"080a87e0-6c00-4d8a-b5b7-cc7628d87fa2","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":176,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"b29c47ba-8b42-4e64-864f-5a76663b503b","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":176,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"158c10c3-4708-40c3-b602-e0ad984f05d3","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":176,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"386821d2-7118-46b3-a6ef-0bdc476e7c5d","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":176,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"f3055d03-467b-4892-b4bf-f91c92682daf","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":176,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"28d14495-0146-4725-a6d0-026b2a56eeb9","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":176,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"2ecf02d4-fa65-4caf-b758-89548c910eaf","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":176,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f57735ec-cd3b-402b-be45-14320aa82294","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":176,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"b5732bc1-1bca-48ac-a67c-8f447630654d","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":176,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"bd9ba04f-a8d9-4ccd-965e-0713d5bb0025","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":176,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"f2168097-0deb-4996-803e-2eaf485dfe12","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":176,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"a8cbcbb4-e4a3-4b64-a37f-597a40d6f07a","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":176,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"6772ceed-fe32-42d0-9929-b9d977ff1afb","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":176,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"d043ec5a-0ead-4d6f-8443-cb4cc50fa30a","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":176,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"7f61606e-b437-4114-983c-fea0ec883ec5","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":176,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"65c51ee1-de3e-4aa7-9d50-a059bd8831bd","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":176,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"eeaf9183-e1d1-4510-94be-96d3a1b2fe69","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":176,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"aa69b771-bde0-4251-a4e9-65d6421429d3","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":176,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"6114d502-450a-4bbd-9ff5-3399eedee90f","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":176,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"dda68d66-687a-47d9-9b1d-32aba17cc272","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":176,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"60802649-dc14-4cd1-a25c-bce057a4e316","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":176,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"54b49b0b-6f2a-4fa9-a26b-fcf0382d0b0c","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":176,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"e984a92f-0e4a-4d09-a004-b6dd2aece336","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":176,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"f08499dc-dae4-408d-98ce-9b30addbef04","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":176,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"5197cfa5-0103-40ea-84c3-494fd10840da","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":176,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"a36beff3-0c2f-4e34-8dbf-5a31ae198553","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":176,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"212f7eb3-9be7-474a-bf26-986973e14f45","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":176,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"706c4390-8598-4240-95ea-dfb5afc1909c","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":176,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"990a20a7-ef8e-43c1-b267-a3cc55bf4328","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":176,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"a627f99b-b6a4-40c0-8f16-64392d281360","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":176,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"458aa198-751d-4acc-9f88-3b52a773c72b","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":176,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"1aaff092-d549-4cad-8f54-a448600e14b2","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":176,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"52f3da3f-f939-41a3-9dd8-75814560d952","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":176,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"3c5cf1cc-b3f9-46f7-a099-cd635682d185","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":176,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"e8e99104-f9bc-47e9-9593-94dfe012708c","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":176,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"73a7f028-181e-4175-8050-e7d7f50eaad6","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":176,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"ea10c16b-1e43-433c-97be-077cfec46916","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":176,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"dad76409-bf70-4f07-bf8c-399ac17aa2f5","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":176,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"91575a69-ff82-4ed0-b9a2-cc6b20a24127","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":176,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"968900ea-426a-44df-83c3-05a1990915fb","block_type":"box","text":"II-133","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ba1f59ae-2825-4a97-95e6-45027691929a","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a4af075-be7a-4681-91c8-c6193fe403d4","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":177,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"24b6eefc-35d1-4e83-828e-9c228a82fb18","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":177,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"543d004b-0db8-418c-9e4e-3e0feacda723","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":177,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"45066e8d-98ff-41e4-bb81-9b92a4485a4e","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":177,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a8077314-1fa2-4620-ba03-e0fff37a2f29","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":177,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"566d82dd-6a0c-4e09-a28f-a91c3b68f3d8","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":177,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"50f94466-a3f9-4c7b-bd52-43fbe7a29541","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":177,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"21465467-34fc-4c41-b032-aefa80152fb4","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":177,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"441756d6-10c3-4ff2-9e12-a7198e86e829","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":177,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"80a6a16d-4168-43a8-b756-8c054b51aed0","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":177,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"9bb1fce7-7ad9-4dda-88d1-8349335a26cf","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":177,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"1c752e41-5cda-4b1e-a9ce-dafd8235d11d","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":177,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"3d677897-bc83-47a5-9d54-0260951ed5d6","block_type":"box","text":"investment oppor tunities.","page_number":177,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"7d2cbf82-f6bb-4ca8-bf34-bbf5bd27e10a","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":177,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"9790c109-af07-4f89-ba24-7ed5501952a6","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":177,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"b2011db4-f24f-4f30-bf6e-95202cde0b08","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":177,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"0076b6bf-7df0-4f06-86fc-a27d06dad89a","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":177,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"40283c1a-ef61-4ae2-ae64-895950bc80f4","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":177,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"781e2f2a-0529-423f-b05e-e923a9c6cfd0","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":177,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"fc9fa572-e21b-4cdb-ad20-1b7f3bc633d9","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":177,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"51c4ecf6-87c2-403b-9b18-564ee48f5203","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":177,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"feec5bc3-c97f-4d23-a562-b04a28d72096","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":177,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"27e013ca-d619-4004-8cc9-92b7449914f5","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":177,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"a64ac762-ea16-4eb7-815c-a5718b78c5f2","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":177,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"697bbceb-f483-45d3-b1b6-b06ae6f9dcbb","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":177,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"ef554134-9b13-49c9-8015-6073d09972df","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":177,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"7ce34602-9fec-4d65-b18c-21e9784150b7","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":177,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"1b98659b-a2ea-4ebd-9c94-d27942f37757","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":177,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"055bbcb1-d3e7-4530-9954-fa7ebb3ef898","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":177,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"960f6ba7-1237-4d31-8805-af668ec8e9f7","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":177,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"36fdab9b-a3c9-4e9a-9577-2912fe0423a2","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":177,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"10e52cf0-94af-4927-b552-277f60b58a4a","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":177,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"5cc8c950-aad6-4dce-8763-84bfab76b91b","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":177,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"138aa395-e92f-49fa-9189-529a52dd3b88","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":177,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"07a136ba-62c2-4121-9c76-0cfd30e898de","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":177,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"e60ccb43-460d-42ea-a716-a7cd4ebb5eca","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":177,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"8e40779e-13ae-4462-8dfe-f8bd82e07189","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":177,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"c6466211-42ba-4d22-9c10-444ccd0d52cf","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":177,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"17eb2e90-2101-4323-8064-626c9a398dc7","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":177,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"3d288c3f-0c41-4986-8b5c-7aa606907202","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":177,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"780da1f5-64ff-4248-ba7c-2a91619475ea","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":177,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"29dfa9b5-d847-4eef-b988-2be5ce321b92","block_type":"box","text":"positions in its por tfolio (","page_number":177,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"ef52f959-ad3b-480d-ae8e-2b7a5a6601ce","block_type":"box","text":"i.e.","page_number":177,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"c56730fa-ff4a-445c-a587-d5cd46c4b4f0","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":177,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"836abf41-fdb3-4422-91d3-e398097f53b2","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":177,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"36dd9298-d7cb-4eb2-b44e-53198873883e","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":177,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"e281f0a7-bc7f-4fa7-838b-e8848f0a4d7b","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":177,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"d522d744-ff18-4825-a963-23ec1a522259","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":177,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"5d27f160-57cb-4f66-9564-411fdb42a477","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":177,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"f3a3dc23-1a0c-40e7-aa87-83af38270b71","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":177,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"d3881bb4-46cf-4a39-bc0a-bb8d92a3d63a","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":177,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"1e9e9824-fdc6-4e61-b31f-e682236dfffa","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":177,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"eacc488b-0847-4c4a-b880-3f92e1f68e7a","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":177,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"85ff9bcb-0947-4abb-b694-e725d16468a1","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":177,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"029f21c2-d115-4596-9fea-b96e0fcbd883","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":177,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"68838409-f963-4fb3-a822-dc1126c0b16f","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":177,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"1c69ead7-b1f9-4bd0-82f1-b2cd5214fca0","block_type":"box","text":"II-134","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bd74e5f9-d551-4cb6-b161-1ad3c5b06f64","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ee92381-0baa-43f6-8064-5ce7a24f39f2","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":178,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"37f5b764-974e-459d-8f7d-8952c82e5932","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":178,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"76be3363-975f-4eb1-a553-4fd958a64e5e","block_type":"box","text":"capital asset.","page_number":178,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"ac2612b9-5893-4acc-8f11-c8f73d98ad5f","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":178,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"d480c601-f18a-4193-88e2-dae7f11f196a","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":178,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"975db06c-9ca6-457e-b1d1-2886e3473695","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":178,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"520ed3d8-877c-4d93-9fd3-b6fd2fbacdce","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":178,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"f9af3eab-d20f-4e38-8009-ae74963ad2b8","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":178,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"ab087064-b5fb-49f4-8cf1-3e92736a9573","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":178,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"7a0d9688-9e4b-4258-ab16-eae0eb6d9e9a","block_type":"box","text":"Fund were to invest otherwise.","page_number":178,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"b80faf78-8faf-4002-8973-c70939813d59","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":178,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"7fcac14e-1a3f-4274-b908-a408aa131bf9","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":178,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"bc130c2f-3aeb-485f-a1ca-5b488f5ac574","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":178,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"d8a858ed-1ed7-43ef-9ac6-c3fb75de47f3","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":178,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"25d38a50-fed7-48c4-a583-e6c902649413","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":178,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"0e635ed0-94d7-465b-8e0a-a2c0176e191b","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":178,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"71c42575-e901-42ba-8f0f-535d0d21e1b3","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":178,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"fdc1957d-0651-42b2-b9f2-43ddc08eef56","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":178,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"b16ec869-d870-4448-879b-6c9662864d46","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":178,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"3dd0beef-6ca2-40e1-a38d-2ae210f246e2","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":178,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"d33da607-d1f4-4d7f-8915-fc5a28e3be13","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":178,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"4ea8b018-cb72-4fb4-940f-79402671d4c1","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":178,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"032166e8-6f65-45e7-a5a6-4719ff50b3c7","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":178,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"1d4b4eef-3d3e-4ba8-8429-cdd5a9822c37","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":178,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"4f66a63a-ac81-4edd-b883-1a66f337e815","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":178,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"8bd03d99-cded-4d92-a68b-9d3d04b68d1f","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":178,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"ba42ff6f-5153-47f0-86b9-b2ee92ce7d94","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":178,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"5ebff956-e5fc-43d4-98a9-257dc52e2cb8","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":178,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"d8f7bc3f-c44e-41a9-8895-65ed126f36ba","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":178,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d7b54954-0743-407d-9079-7ce340806100","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":178,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"7c0635e5-ee76-41f1-a06b-17b47b684cfd","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":178,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"8a38b769-ae55-48ab-853f-3d3edb5d4de6","block_type":"box","text":"PFICs.","page_number":178,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"dd772cf5-3226-4b03-a112-29991682fa0b","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":178,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"74d253b5-6340-4860-9945-51a0083978a1","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":178,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"d0875e09-d39c-4121-b6da-cb88c353f66f","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":178,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"01082c78-8261-461e-99f4-b732abffcef0","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":178,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"d2a9aeca-ab03-4f44-ad36-089fdad5aedb","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":178,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"5374a9dd-0abe-4ed1-b27e-6f911dc3cb34","block_type":"box","text":"difficult or impossible to obtain.","page_number":178,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"fb11b75b-ded8-4807-9f7c-b0809508664a","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":178,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"17bc8b77-0f1b-4dbd-b5c2-a57442145ba5","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":178,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"553f7947-864b-49c7-a01f-2bd9a8562376","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":178,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"25ab4edf-de10-4ebf-9ad4-0d987238824b","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":178,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"8844e4c6-4e3d-4f21-8e99-515e6f3c3a2c","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":178,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"f48df521-3dd2-424d-a75f-fde60239ac59","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":178,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"30b4890c-1b26-4672-9bae-1e7fdacd6e0b","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":178,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"b900de7d-2f42-41d5-a028-904639bafd26","block_type":"box","text":"Municipal Funds","page_number":178,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"2dc2fb30-7b1c-40bf-a5b5-251a26342de0","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":178,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"eda847ef-5cc9-41ef-9631-39978c2d578f","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":178,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"6b57efd0-f9e1-40d0-83de-03fd53263bbe","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":178,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"fe46f8cd-db6d-4d92-8e1e-d076353e7826","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":178,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"20ba551a-9b06-45d1-99b2-9bd6b934106e","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":178,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"887ff18f-84d4-40b2-b5f7-c4b06aa7c7dd","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":178,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"00e1c757-ff20-4a3b-bc6f-55a6064e4ccf","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":178,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"fabf181a-a929-41b2-b381-dc0e1cc76ac7","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":178,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"859b7e7a-cea5-49b0-98b4-b2334a7f42db","block_type":"box","text":"II-135","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bea45a75-d5d3-4989-8cee-d6e56114d104","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a8977fd-172a-4815-9e7c-29c59e65c722","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":179,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"831ec130-9954-4daf-b9bd-29cfa9352dc5","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":179,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d781b540-62ea-44c2-9a41-e3be4528aede","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":179,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"f67819d2-5f5a-439d-b3a2-a6fde9bd416e","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":179,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"2f6d29b3-c4c2-4965-ac17-6bd220861ebe","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":179,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"aebe754b-58c7-456f-9bdb-3209a4b09a40","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":179,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"72fe72e1-30b3-4af0-83c9-c817152b89ba","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":179,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"cf9dbb03-eebf-4b2f-b4cb-b7a615789bb7","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":179,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"a1ee2c23-4971-4089-977a-668fc7b9d6aa","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":179,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"fca5af0a-9c36-4893-8c5f-afb21f675ced","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":179,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"c660f5b0-f091-428a-9d32-b5266db0961d","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":179,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"f182cdc4-2977-43b8-a360-eb8dd3a91d57","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":179,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"ea944beb-0d8c-4029-8c08-4a9b67fedf82","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":179,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"ab806b50-e7e9-4bfe-8b3d-4a4631df2a03","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":179,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"c20286be-774d-47d0-987b-ac2ace2741c2","block_type":"box","text":"constitute exempt-interest dividends.","page_number":179,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"69f06686-cf6c-4bde-a83b-6588f4aadc81","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":179,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"12857e7e-80b6-44cd-b6b0-5234c980c271","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":179,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"c61003d7-f363-450f-815b-72376167d3dc","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":179,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"75b35ffa-1ed5-4fb3-9371-94dc9c8304af","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":179,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"fd7275b7-3926-461a-a7ea-564bffdaa7dc","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":179,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"02d5ce0d-91d9-46d9-bf59-eee0968ebfbf","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":179,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"0738a612-428a-45b2-95dc-ab4ae1f6a2b7","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":179,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"d465b9da-4854-4ca9-8dd5-f83523230a1f","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":179,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"31b222ee-cf6b-424e-be3b-98724dc99a32","block_type":"box","text":"income dividends received by shareholders.","page_number":179,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"fe3e66f8-393e-4972-b7b2-21f4a4b4e57b","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":179,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"b39fae70-8782-4c0e-8d5b-b1d7d2cc39f5","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":179,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"0542195d-8cd3-4f6b-8745-f1cb54dfa658","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":179,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"c248463f-ea68-4437-a88f-ac4e380ad0c9","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":179,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"1c6a38d7-2820-4665-9e4c-83fffbc41e9d","block_type":"box","text":"the accrued market discount.","page_number":179,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"aaef29cb-7442-4c5c-be21-4ea3e49177f9","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":179,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"1609e558-107e-4231-90c7-442879a64a47","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":179,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"f9ef47e1-24b0-43aa-8fc6-9f1a5ff2d67f","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":179,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"963e9ffe-8e45-4bfd-b0a4-92e79fcfbe8f","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":179,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"daa7476b-3bc6-44a5-b946-944e48b1efea","block_type":"box","text":"e.g.","page_number":179,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"a53119b7-8db1-4d1e-881c-bc0276974493","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":179,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"6d8716bd-0890-45f5-b7e2-7d649cc65501","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":179,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"ee1709a8-1ea7-4119-8d00-c42f6f96c418","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":179,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"0ef8127f-bb3a-4837-ae9d-6bcc172261ac","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":179,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"15c63f11-7f12-479e-9038-08faf4e995ce","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":179,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"4ff0a5ff-cd76-4c31-9857-c0e304a4cd4f","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":179,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"e0d02d63-617f-426e-8c70-fed871943d69","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":179,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"af651812-721c-45c1-97cd-0f30b37927d4","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":179,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"e46ee653-5467-4578-bb3c-a9184bbc82b2","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":179,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"6ecddc37-419d-4782-8630-d503d8b7605a","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":179,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"960548f7-60c6-42f7-a344-aad90fe6ec2a","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":179,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"d69026c9-2526-458c-9f1b-72207dedee8a","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":179,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"5841a634-c457-43d3-acd3-5a91fc57e635","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":179,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"3eeceee6-f35e-4135-9fbc-5a4615424e59","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":179,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"73edc9ab-01ea-4a91-8f91-f744b9aea26b","block_type":"box","text":"within each applicable state.","page_number":179,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"91ff4cec-15df-41cb-ae7e-78ef5ae72f44","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":179,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"b16ad17a-de6c-463e-a1e4-b6243e8b2e41","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":179,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"f19caf6c-ba49-4b75-8ff4-46e81520e874","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":179,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"802ee4b5-5931-4a06-a19a-e583cdd0b6da","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":179,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"3194fe34-f85b-42b2-b396-d8b153466e7f","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":179,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"476d9ffd-daf8-4870-bc92-2cc9fc633ba6","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":179,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"1505ab47-c37e-49db-bca8-352471b7fa42","block_type":"box","text":"II-136","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d77256f-c019-419b-8b0b-94be7730893c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"731608a9-59aa-442c-8489-df93b35a2e32","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":180,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"fc51ba43-2b5f-46fe-ab0b-3f4ecdd51d1f","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":180,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"7314ea47-924c-4353-ad45-664966f8b952","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":180,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"9da1ea94-0528-4cac-b363-a1325425ef7a","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":180,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"2b25c816-b4a4-431a-82c0-f96c7afdbd9e","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":180,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"b97fcedf-1269-4eab-893c-08d104779593","block_type":"box","text":"exempt from state income tax.","page_number":180,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"27478459-7955-4788-8a2e-a4599fcd13ee","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":180,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"9a088e2f-f13d-467f-a113-f37de6bddef4","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":180,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"3daa77b1-0f09-45f4-afb5-bc0f58ead6bd","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":180,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"a6e4e4f3-d41d-48e5-aa04-5780022a1079","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":180,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"17c561d2-53ba-4f29-b49f-b1afa8286a64","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":180,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"d3fdb9d2-63fa-44e2-a30d-140ebf5a4a47","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":180,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"e5bae0d2-bf5e-4ed4-9214-d27b078ec2fe","block_type":"box","text":"decisions may have a retroactive effect.","page_number":180,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e03c189f-1d2c-4977-8828-e5b38c74d320","block_type":"box","text":"PERFORMANCE DATA","page_number":180,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"1e655f7b-ae68-476b-82b3-56cf3d9bbd68","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":180,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"883cb4c8-e6ff-461f-81ed-c1fc0a5b73ce","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":180,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"e85626b9-ca73-4803-afa3-752ad587bf86","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":180,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"534807f1-2a99-4440-b5f0-40f85f8fed75","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":180,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"c3d3494c-bd25-4733-a37d-7d7ea170f8ce","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":180,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"865ee8ed-1b29-4118-a7aa-638b90afeae5","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":180,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"b1daa3f8-8b6a-4732-87d1-beddec8a6cff","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":180,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"71239131-06cc-4510-bb53-41808220c714","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":180,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"246e2c9e-f9f1-47a4-b3bb-d47b387da582","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":180,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"579a3acc-693e-4a7e-b28b-435a8e363b1f","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":180,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"0e9be3d7-81ea-4a5f-9fc0-5636e7b966fc","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":180,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"e3e4cf68-3578-4e0a-9a0f-3b4e13fedbc4","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":180,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"ba27d8f1-890a-49ee-a046-9c6b1d4637d7","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":180,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"f6fe5286-0739-4b96-b510-2e7805fe9bc3","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":180,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"add87428-2232-491a-94e1-9bdc33faff70","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":180,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"7a475f08-695b-4ffe-b22e-6f671cb09c80","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":180,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"30f6c45d-1b5a-4e36-819a-a9ebce56aed8","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":180,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"86d95815-9d53-42ac-88ce-bb1cc2014ea9","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":180,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"8a248799-8faf-45f6-acdd-1fc16e952037","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":180,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"497c5851-8259-44e4-bbc1-213fcadb5d6a","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":180,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"4a1c6f95-2199-4c90-9f35-16aa704e3aa7","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":180,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"aeb7a636-1a53-45e9-bd9a-676b0547598e","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":180,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"12ef62f8-62b3-4850-835a-885833b9d69e","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":180,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"b5c75c0e-20ed-4967-ba45-588ef8885d4e","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":180,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"73f11e43-0430-4372-b351-b7bd8962755a","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":180,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"bea61af9-4783-40c4-b379-e183901db096","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":180,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"01d9def7-5c37-4953-a5c6-de22931bec1f","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":180,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"5842a75d-4f12-4b07-aadc-ce086c2c4fcb","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":180,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"b82e61e1-5b16-4676-9c50-99387bec8a19","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":180,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"afb3908f-946d-4c18-bd96-4ebc97107e1f","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":180,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"429abc66-a8a5-4239-8b15-03dc601b1a86","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":180,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"817daf03-03b1-453f-8b32-e404c1dfff34","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":180,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"25f515b4-eed7-4d41-92b7-fb2960da69bc","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":180,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"96aa4766-55ec-4936-9ad8-12edb58a35a5","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":180,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"9b434bae-102b-4e46-9b67-a9a18a7ad328","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":180,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"5bd6a70b-c19f-42a2-9e5a-1f5917079bac","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":180,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"996b8c4a-6fb1-4569-a2b4-7eb958a44fa8","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":180,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"0d1dca6f-b1fb-48be-9798-05838406aa73","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":180,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"655bf5e9-3f04-433d-b8e4-358a38bbdb93","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":180,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"7743e2ba-a375-4f0b-be47-173cae465782","block_type":"box","text":"II-137","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"06148716-2a13-441b-8622-984c6c1dd830","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07fe5473-e367-4fe4-bc31-90eb22c1d9d6","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":181,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"34c9399c-349d-464a-b99a-16a3b7d2d18d","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":181,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"97b3f82f-7f03-4041-a2e7-07ad18cd9f83","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":181,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"d968b65b-6450-42f4-adda-7e35d3d4f0ca","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":181,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"c239f578-143f-486c-88d0-e26f9c88b3ab","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":181,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"ca8e2c3f-4908-4ad4-aa86-4246c90869c1","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":181,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"0df1a4b5-2e12-48e5-8518-b88b71dea88d","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":181,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"36b70bff-bfb5-40c8-8127-8b65c82b9a63","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":181,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"c334f8a2-06c8-46c6-8e76-4202e6d64c1b","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":181,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"a6947115-53d2-4133-bd59-033645dad936","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":181,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"e844b9ed-2bf6-4aa3-8231-3d05f6f5ae2f","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":181,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"9d7ab08c-0f90-48e7-8c7b-48d3d9a4fa72","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":181,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"6fe12f6f-edd6-426f-a518-8ff2e9cbdbc5","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":181,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"eaa0527f-b2ef-4c19-ba72-42b542355871","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":181,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"c5116572-5923-4667-a6bc-226ed27755fe","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":181,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"c8a5c311-1534-4567-bf81-cc3690106510","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":181,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"e40c334b-e355-404a-8fa7-f660aca11527","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":181,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"3ddc3f6c-0151-427f-a485-c16348abf5ca","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":181,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"c7e8aca7-5e51-420d-a6a5-f4eebc0c37fa","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":181,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"cc0ec4cf-1b7a-4466-a098-4df23f8aac5b","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":181,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"7f7dc6b8-58f2-49dc-a6c6-fcd71f911999","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":181,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"542b7392-1597-4567-80c7-9e84dd8ab785","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":181,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"05251f30-d1e6-4fd5-9164-57d6d597c920","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":181,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"c4c83c22-2353-467c-8d9d-21beaa504703","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":181,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"c0773297-d110-4d5b-88b5-1668d9152e67","block_type":"box","text":"less than their original cost.","page_number":181,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"cbd55178-dea3-4eda-9f90-f1e5e79d1b83","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":181,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"1217e93e-644f-4aaf-b2f3-ae921944348a","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":181,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"30a0e53f-a4d5-442d-966b-e0e32f9edabc","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":181,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"17826f89-4935-4e84-b99b-bc577ca231f2","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":181,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"d448397d-c500-4bc5-ae7a-7aff9ec3aee9","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":181,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"05280b74-4d0d-4d09-9596-97e3d077e7f1","block_type":"box","text":"lower amount of expenses is deducted.","page_number":181,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"b88563e3-f6f4-4e67-8a15-1427bcab6b9e","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":181,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"b72dc6a8-2c11-4efa-8433-fecfc180cbf4","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":181,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"c2051fce-b9eb-43b2-bcba-178ef25110bb","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":181,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"989f63b1-d64c-45cf-a74c-ba51aac071bf","block_type":"box","text":"Money Magazine, U.S.","page_number":181,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"1813b178-9e42-47a2-9692-33319ef6a9e1","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":181,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"eb2fcc75-e80f-48e1-bb15-b9188c82b866","block_type":"box","text":"or other industry publications. When","page_number":181,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"1ed12913-f50f-4e4a-a186-da2dd73d06c5","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":181,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"2f2e62ae-502c-47c7-b889-4826f5d18b8c","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":181,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"dcdf3592-2264-4d4a-a3a6-09a569883615","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":181,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"d5e3c82a-663b-42a1-b5ec-175de4df5f36","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":181,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"2a317cee-571d-4012-a321-12715d044ee3","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":181,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"481c4e06-8087-4215-9118-ed64675771e1","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":181,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"7106765d-7fe2-47fc-a2d4-1217614d8fc4","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":181,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"a6b3cf7f-82ba-4bbf-a2b8-fcd8b80e4d17","block_type":"box","text":"developed by Fund management.","page_number":181,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"721100f3-d1e1-431b-abc0-783c5fb7dc04","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":181,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"1a4c7a46-1744-43b9-8245-d1d30c715d36","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":181,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"bd80e2d4-c492-4aec-9e1b-5fd19cfad6b4","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":181,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"a3d9a2e7-e558-42ea-bbb2-8f3bab73267a","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":181,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"bccde25e-5ef6-4c06-b305-b73e36122ba8","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":181,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"c22b9ffc-28a2-4627-bcea-5808b1209327","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":181,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a55f2317-beef-436c-b4f1-02a7c6229111","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":181,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"56f68b0e-c2be-4f9e-80a5-67c822ca3879","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":181,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"caf76482-ad50-4fc3-829e-f2f3b3bb8b3a","block_type":"box","text":"II-138","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0e8f18c9-fcc2-44c0-b04f-d7a00fa091d7","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c75c30ae-8b32-44fe-a403-e4c74b006419","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":182,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"ef9c1b50-f356-4d18-abc2-5260db05e354","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":182,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"aace9e72-64a1-4b4d-a999-68ab9d859d80","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":182,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"52bd038a-df2f-4e57-a131-57a11b9c89aa","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":182,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"8c2aaafb-af6c-4880-b00d-b3d2697544f0","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":182,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"65a4ceb8-8980-471f-9255-d53bb4f9a031","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":182,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"7012b9ed-87d9-4869-9309-d27506cf4982","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":182,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"4e3b31bc-ebd2-42fd-b09d-bbb4ca8b0c75","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":182,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"5ad3edc0-30bf-4b54-895c-daffd6a5487e","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":182,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"742dcff4-bbdd-45a2-8e15-4cf124e80242","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"4c25413c-6892-4926-aeee-7a92a90b102a","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":182,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"7f732551-15fa-4d61-b967-e926f598559a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":182,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"33cf53ab-e510-447b-b4ed-99184beaa8d2","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":182,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"21181f20-94f5-4cb1-993c-9409f2cb02ee","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":182,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"4e326b6e-e225-4421-8f9d-cf922bb63bd7","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":182,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"8fd7e442-88a3-4e0e-be7d-eba70a85e1cc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"bf9fe374-b626-4394-a56b-5df069b48608","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":182,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"d9a0699f-3915-435a-aa8c-7de9a068dbd3","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":182,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"07414de7-3d7f-4403-ab5d-c2e2f68d20e3","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":182,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"f6c5fdf3-5fc9-4c1e-95f2-a3e03f794e36","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":182,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"d11c7607-9bfc-4330-b820-d72f9aabdbe8","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":182,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"28673fb6-e3b2-4b81-b581-a00318045f8d","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":182,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"fcf8fe60-a483-43fb-9690-8724fa70d932","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":182,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"0eab9246-e2ce-454a-8af6-86b0cbb92d46","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":182,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"6a9fb702-28c4-41cd-9241-6e066b4333f5","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":182,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"5f590afc-dcaa-4672-a6bb-79d58a03ca9b","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":182,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"f6149e02-5879-4636-921c-6bdfaa2b9d2e","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":182,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"152cf967-1461-4e28-8253-2a89c84c34a0","block_type":"box","text":"GENERAL INFORMATION","page_number":182,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"3b4f9748-d76e-4f61-b1a2-73d45d175f98","block_type":"box","text":"Description of Shares","page_number":182,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"a497b247-c7ca-4b62-a4e1-800d4e714cc6","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":182,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"c2cc0261-0e12-4548-a0e4-bfdf0caa211a","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":182,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"6076f8ac-ffb2-4ef9-9462-c2242d2647c2","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":182,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"131de6cf-770a-465a-bf3a-d24f9f965370","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":182,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"78ad1228-8d81-41ac-9cc3-cc27a3d19452","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":182,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"b63d1dea-9cd7-4f5d-bcf1-33699b220319","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":182,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"cfe9f0cc-4614-4d15-a82b-f26a6120535b","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":182,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2b23a3b7-a953-4c67-8181-2c98ded8f4dd","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":182,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"4cef375b-5d38-4d16-851d-6495a7c15af5","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":182,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"a3076025-27a4-4b6a-abae-79cd851efb5e","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":182,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"77c1b3d9-23e0-46bd-b94b-68bdd5813950","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":182,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"a8926c83-e1b9-4c18-b075-a40a9507affc","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":182,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"07881963-b5a8-4f66-85f0-6f6df2c63cab","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":182,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"846815f2-88f3-401d-8922-88888349ebfc","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":182,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"fc79c259-e132-4bbd-8c19-64f55b8df81e","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":182,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"cfd52083-4aec-4747-b1ba-414145e2fe85","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":182,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"fa4aa040-5d27-4116-92d5-ceb1f007b1a9","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":182,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"09ef02ea-58d2-4150-a318-85f49d901d26","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":182,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"0e3bf0c6-15ef-42ad-972a-8dc62de04a82","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":182,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"d3ad8f7c-5859-45d9-8b05-42b7cd30c22e","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":182,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"5a237f70-fdfa-4037-8aac-10632a845dc1","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":182,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"8fdedd81-cf25-49f7-83d6-cf5616af0651","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":182,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"c85b94f5-2428-4b1d-a256-368b23507311","block_type":"box","text":"II-139","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d46d2b2-1400-4ce9-b03f-a5fe2c4433e3","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"617db828-5158-48ee-9f8e-933983c15067","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":183,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"1283154b-af61-4b2b-8179-6c3d0a741b41","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":183,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"37fb704f-20fa-46ca-bf0c-6e0f771bc67c","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":183,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"08fc9607-bc18-4826-bf83-320e5303a96d","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":183,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"71608874-a89c-4697-bd41-0fdd43ba6e69","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":183,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"66ed2f7f-cc26-4ea5-b382-96ecfd543f9e","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":183,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"d64d2886-7f4a-4cf7-8c96-2d30715027f7","block_type":"box","text":"Additional Information","page_number":183,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"c89ec8e3-f289-4775-b789-8fff6d0a766d","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":183,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"0e743ce6-5806-4118-beb6-b746696fa88a","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":183,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"be2aeb31-0659-4c80-819c-ddc54f7da928","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":183,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"6e5d1775-dabc-49c7-8d4d-153c153311b8","block_type":"box","text":"such name to any other company.","page_number":183,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"c1731627-6dac-439f-9e96-701e70f76781","block_type":"box","text":"II-140","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"719b75c5-dd59-469b-8c3d-9233c0cee4ff","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"149b3ac1-c4ff-4d9b-a480-01a273ef848f","block_type":"box","text":"APPENDIX A","page_number":184,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"0138d708-8f04-40f9-b3c5-f720c8938dad","block_type":"box","text":"Description of Bond Ratings","page_number":184,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"eae9d037-7491-4f92-a15f-38ec4ccc2f82","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":184,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f83fc765-3ae2-4e21-895c-78528df6f464","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":184,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"b4114d14-19e5-4c49-b7c5-0631df7c75b1","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":184,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"7576815d-8840-4325-9446-7560fdc323f1","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":184,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"44927054-a6b4-424c-aff7-ce9b49a0aea7","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":184,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"dfe90c4f-2348-42c8-9325-24091f461700","block_type":"box","text":"NRSROs may rate specific investments (","page_number":184,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"b206da62-b2bf-4faf-8621-60c635840601","block_type":"box","text":"e.g.","page_number":184,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"f26e403b-9070-41b1-a48d-ce884e634800","block_type":"box","text":", bonds), issuers (","page_number":184,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"0f32be98-27da-4710-9106-2bd937f62155","block_type":"box","text":"e.g.","page_number":184,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"3f2f2b87-826b-4191-8567-4384f26fe373","block_type":"box","text":", corporations, governments and financial","page_number":184,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"17f0630a-37a3-4dd6-b738-1dd09068fbb7","block_type":"box","text":"institutions) and/or programs (","page_number":184,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"e7ca7135-4880-4c55-afb6-efa08309e7b1","block_type":"box","text":"e.g.","page_number":184,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"71055a03-a4e5-4b87-b424-ad3edf4f2048","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":184,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"08c211b9-e08f-4890-a3c3-1a2de771c803","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":184,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"79a48ab2-709d-428b-9bef-bb57c4d8ec75","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":184,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"8b8e3ddb-e0da-4471-9a30-d0ba7331fc1d","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":184,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"8d20f382-8ef6-4cbc-954e-62ab9c5c65ab","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"d554cbe0-3e46-41b9-af38-617ad2083f5c","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":184,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"bc80de2c-2369-494f-932a-95801c505301","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"2949efde-ae7f-44d5-8278-bcb4f011a687","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":184,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"18a9fe81-0198-4d07-8cbf-6f0036e67749","block_type":"box","text":"security (","page_number":184,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"2b7981a4-68cf-4386-8348-2c81cfc3e035","block_type":"box","text":"e.g.","page_number":184,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"40e6e9c5-79af-4bb9-8337-deba94d82348","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":184,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"ad5b9cbd-9354-4986-b5fb-5f109a59314f","block_type":"box","text":"highest of the multiple ratings.","page_number":184,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"922225b3-ee39-40bc-83c5-96ee93a05deb","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":184,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"65872d53-77b4-4833-bbbe-164aa6481000","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":184,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"e4b30962-7214-46ee-87e4-a80fa8db0d31","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":184,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"463b10a0-64d3-4fcb-af86-13548c9f8605","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":184,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"23367ee4-239e-4f6b-8243-89f1941c41b4","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":184,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"de352fe3-f2e3-49ab-a58c-48bb6bede524","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":184,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"13b2402a-94ab-494b-b8cb-73609e13a25c","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":184,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"edb315d0-9d60-41f7-b2b8-f8ed73cd5d20","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":184,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"0dfa41e1-b2c0-49d0-b845-ceb35344e749","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":184,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"bb64b674-7037-40bd-8b17-4d734b8dfa2f","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":184,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"ceacffd4-4d0e-470a-990e-764e64af9b45","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":184,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"6a1bf2f5-32bb-47b3-a854-79b698802599","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":184,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"edc0f597-e4c1-4fca-832e-58ec33675510","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":184,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"f4862c95-403c-4c35-8a4c-acd6d38d6437","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":184,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"cd7fc01c-6f62-478f-80e9-f52cfe775718","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":184,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"d1f8a6b2-0462-49ae-9c6a-7edfdd76dd31","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":184,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"5988a576-2b06-4bae-a543-fb344ce89eab","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":184,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"a94390bd-2ece-4c47-976b-ca63f166f34f","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":184,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"aed73143-b0b0-45b6-8ea1-d4e00f6ad934","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":184,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"c96488fb-426c-48ae-8c33-7595ff9b87cd","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":184,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"7dcd8cf3-3a36-4d6c-9595-b3de817a9d72","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":184,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"4699fdd6-63e1-4c46-b4fe-3e7b6bc55fdb","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":184,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"4593e0d9-674e-4e21-b532-60177ff86648","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":184,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"abe10514-c936-4bab-8f95-50553a7b42bd","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":184,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"6b35b8af-a09b-484c-8e11-84301207c6cc","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":184,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"4a6de1d3-2611-4206-95a6-a05e861aec34","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":184,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"04a16987-c2b1-48c9-8789-a5127239e0b3","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":184,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"f911a972-cc5b-411f-9c94-a0c3970000ac","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":184,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"48fa7ccb-b008-47a1-8315-fde068a41f37","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":184,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"fd990079-c323-46da-94a4-a55b90c9771c","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":184,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"ef040794-ef49-4c69-9102-b5d6e81790ff","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":184,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"41ac1a0d-a6f2-4b17-845a-8a2f7ec2a79e","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":184,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"076453cf-11dd-432f-86e6-2340b3eaa4f7","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":184,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"2e1f2d14-c6d7-4899-84a0-14eef8799bbd","block_type":"box","text":"upon standard sources of variation (","page_number":184,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"1a0190a7-a710-436b-9d48-3fafefd3b004","block_type":"box","text":"e.g.","page_number":184,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"00f1c71a-6bf4-411a-953a-97c0a85cea7c","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":184,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"08aad87a-3a1f-4948-b41b-eebc08df2e07","block_type":"box","text":"A-1","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9107e64a-584b-464b-9358-ca240cd8e90b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ade7ad1-0117-4cdd-b530-cd7352ea0361","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":185,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5c031b12-170b-4dc3-9409-7d2a215042aa","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":185,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"9fff89dd-5803-4699-919b-f0332cbc8995","block_type":"box","text":"e.g.","page_number":185,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"d0291b94-c42d-458d-b5f5-75240488f78a","block_type":"box","text":", equity indexed), absent","page_number":185,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"77741e08-2fee-41d4-ac3e-8adf5c9ea97d","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":185,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"4035c982-9b76-4845-aac6-206326cb068b","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":185,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"245fbc63-fbaf-41d7-b065-6588a2fbd0ac","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":185,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"6e1913cc-d77c-4592-b8ab-545a25845a18","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":185,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"c76c6e40-9dbb-435e-8741-bdea7c55078c","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":185,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"6092045e-4a3d-45ab-b528-b2fc9801024f","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":185,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"c0e0c11d-3f79-4400-923f-114e5f078916","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":185,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"59b10bec-1d9a-4ac5-a4d8-53a28f5139b5","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":185,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"49712346-025e-45d5-a242-6ff42b024ae4","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":185,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"283131b0-07af-4226-8fb5-5a6afb6f8a58","block_type":"box","text":"i.e.","page_number":185,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"e81a1acf-ed6e-4b7f-855a-d8ff415b53c6","block_type":"box","text":", ratings on nonfinancial","page_number":185,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"ccfd0276-ccda-4b01-9cb3-4b94274a9d46","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":185,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"a13672d0-aeed-4224-8b52-1c0b69f6cf4b","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":185,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"0b9fcfcc-c818-4879-b07f-7b2fb0e47017","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":185,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"6e416c86-cb5e-4100-a400-156f88cf4c83","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":185,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"ab59e661-d926-4274-83ba-0669bb21d576","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":185,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"abfeea63-b356-4d48-8b87-e73e5572a750","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":185,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"8b633632-7107-41e2-9a49-0e9ed1904b08","block_type":"box","text":"of time.","page_number":185,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"42c28877-03da-4dee-8853-263837e86c3d","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":185,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"4f2fe4ee-b288-45f5-bee8-b4dd00749a28","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":185,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"760ccc24-def5-4baf-a616-c320a96ed921","block_type":"box","text":"risk.","page_number":185,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"7440b562-cea8-4c0c-a37f-c32b8059555d","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":185,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"b2f73e91-b196-4eb1-9eeb-95a100b19fb3","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":185,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"8cddff50-cdb8-4f7c-ab4e-7e9201f40dc7","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":185,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"8aaffbfc-f639-49bb-8d26-dced0ffd2ac5","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":185,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"56122b2a-4502-46e1-93e3-46f2ad5267c4","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":185,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"c4b4e4ab-ad3e-48b7-a392-86d6f4be74ff","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":185,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"36bef120-4ddf-4074-8217-982253ad2ab5","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":185,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"4b6eddc2-7331-48b2-98c4-9ac3b3ca1641","block_type":"box","text":"credit risk.","page_number":185,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"b0a08fe2-2323-40c3-8425-544dc43d0576","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":185,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"e1114af7-13ef-4cc7-9ff1-1c0983d30b10","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":185,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"f1f11f30-38f5-40b9-ba2e-6f845a98db4b","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":185,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"2688dc62-eaad-4400-9e77-f76f93ed6863","block_type":"box","text":"of principal or interest.","page_number":185,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"d649ec58-3823-4078-a8f9-5ef8da4636d5","block_type":"box","text":"Note:","page_number":185,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"48ed55ad-76d6-4480-b5b1-637be16de294","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":185,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"e5180cfc-577a-4db4-83c6-18b1988d70e3","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":185,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"d797ac44-28c3-4554-88a2-eb6815e6095c","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":185,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"f64fd7c0-2196-432e-9352-58a540eaa35c","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":185,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"552bd97d-f226-49b8-a56f-fb486af9f283","block_type":"box","text":"companies, and securities firms.","page_number":185,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"7890d925-616a-4a1a-adf4-c27144767b23","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":185,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"a681f97e-227f-4bed-be1c-01f5b0715a0a","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":185,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"dc5fda4e-4c24-438f-87b1-2f1016874052","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":185,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"219fab20-a53d-4a63-a373-b712b4cbe2e7","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":185,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"ef2263ff-a788-4e91-aca7-7972731f16d9","block_type":"box","text":"that security.","page_number":185,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"a9e36fe2-29f4-42b7-bed4-67dbe2ef3dc0","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":185,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"d18eee8e-65c5-4a00-99dc-dba76642cceb","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"71a7cb32-dc00-41ef-b036-20943ad6514a","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"dd2887a8-2732-41c8-8f1d-0e0014d9428a","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"c652375e-d3ce-41af-a3dd-547892134d60","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":185,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"a7ac886e-f6a0-4b61-8b48-cfba57bf1b84","block_type":"box","text":"categories.","page_number":185,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"a940402f-57fb-4671-b06a-98fc8d252bf2","block_type":"box","text":"A-2","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"4ed8f0d2-13cb-40ee-bd0d-e6dbe6a6c86c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1d3e4c8-44d5-4bc5-a2a2-6edb773ff6c9","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":186,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"0cbf59b4-f816-4711-b0c2-2168b9e8f7d4","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":186,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"ec5cfb1d-dfc1-4a0a-ab7f-b66745eab1f4","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":186,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"5bc897a0-534a-49cd-8800-45cf2f31ba50","block_type":"box","text":"an issuer’s self-liquidity.","page_number":186,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"9e59a104-aecb-4eb5-a7b5-40ddb44611ef","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":186,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"223b8229-d0a4-48fd-82e5-3b917eb07186","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":186,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"52322b33-a6b0-41bb-9eac-34edc64241c5","block_type":"box","text":"MIG Ratings","page_number":186,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"64e32860-50f3-43fb-a412-59de43f59cb8","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":186,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"497835f5-e2e5-46c7-a53a-095f3d3c0525","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":186,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"2a27b522-6e37-40b1-9a71-2e922be0345c","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":186,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"59b5bee3-88fe-4da7-97f8-91d7592a3d01","block_type":"box","text":"MIG Scale","page_number":186,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"c920fc18-f56a-4c29-8cb1-71688a39afeb","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":186,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"2f2147b8-9818-48d0-977f-163da7eb6c52","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":186,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"8c0db704-a95e-4f27-beb5-fca25a663336","block_type":"box","text":"refinancing.","page_number":186,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"acd0fb15-e3a0-46f8-839a-0e530e8bf722","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":186,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"7dfbdc47-debd-4405-809f-ca794164c4f0","block_type":"box","text":"large as in the preceding group.","page_number":186,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"a107f0a8-412b-4350-8480-c00eb0cc139a","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":186,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"fbb453ae-6c2b-4b78-afc2-7cffddc75b31","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":186,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"379649d3-63d6-42b4-a4a2-38c947f6f605","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":186,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"773cbd6b-0fe6-4eac-9709-727cdb7dfa7d","block_type":"box","text":"lack sufficient margins of protection.","page_number":186,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"23fc3999-dd2c-48e5-a4aa-ba10a18cd81c","block_type":"box","text":"VMIG Ratings","page_number":186,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"522d6520-8b23-4f58-9353-9034e6908fe7","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":186,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"cdf22ef7-98d1-42ad-a62b-6710635ee69e","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":186,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"cd2224ef-0dc0-480b-906b-096861d39736","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":186,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"9b3a01bb-6e72-4c74-8096-af05e896b90a","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":186,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"2c533e4a-3124-4a56-bbd3-04ca8d4b016a","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":186,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"dbefa1d7-3f1e-4a0b-8801-213e3df9e51e","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":186,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"418b3fe0-39df-4e78-a1c4-214350bcfefe","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":186,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"de5f35b1-c6ce-499e-8ef7-a100da47e38a","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":186,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"c696e67e-67d5-4e16-9d4f-68e5ab2ee5e6","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":186,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"b4ccf994-9778-4f92-8521-6f695eb187f3","block_type":"box","text":"grade.","page_number":186,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"3ca9b36e-4bf0-42f5-92f3-dcd151eadba9","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":186,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"e7ec7b7b-c900-4660-9d5d-5132b74a83c8","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":186,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"a9d3bc8a-0346-4db0-bc4d-5c0bce998b41","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":186,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"2e55b801-4a9b-4d1f-97a9-e096f653d96c","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":186,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"702eeaba-4b33-4dad-ab03-38f71b0e8473","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":186,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"deffab64-7baf-4edb-a3bf-f940c29bede5","block_type":"box","text":"liquidity of the corporate obligor.","page_number":186,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"2b6a9236-812c-4588-b538-51fb0ea6e567","block_type":"box","text":"VMIG Scale","page_number":186,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"faf81ccf-054b-42c7-a920-86e04f15a3cb","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":186,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"ab2f2650-a152-4e32-8abb-b9f9696a1f88","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"edbd59cb-93d1-40cb-8bdf-eaabb281a61b","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":186,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"146976bc-5afd-47e2-bb1c-6324a316642c","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"383f00af-983c-478a-8b4f-0c311b3ea28f","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":186,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"5dde7149-b231-4d4b-b992-5387c502ad03","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"b0aa4aea-4184-4b65-8bdc-11703e399fb6","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":186,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"0f60b4f5-3e8d-41cf-b3b7-1ddcf526f678","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":186,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"3c08b9e7-4606-4265-93b0-098fc65b9019","block_type":"box","text":"may lack the structural or legal protections.","page_number":186,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"e048ec78-2948-494e-bdf4-1a1b1eb1a903","block_type":"box","text":"A-3","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"026f32a4-ed88-47bc-8a5b-e0e378b759bc","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5940fe22-8ebd-40d9-a086-ba74a9d23bba","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":187,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"f65d0d4a-53b3-434d-9bef-bd9c7454793e","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":187,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"56404887-4d02-4c96-b69b-7848a2867879","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":187,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"e8211571-6e4d-4268-9b2b-b2c56079e010","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":187,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"edad81d8-0128-41dc-aa22-47f711fcfafd","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":187,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"edee7b27-367e-433d-ba47-94065ad4190c","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":187,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"c3b65f8c-e798-42ee-9f97-9585072e68c7","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":187,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"e5d7cfda-2fe9-4113-aea3-7abee1dbe4c2","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":187,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"c22316ba-010d-492f-a82f-45edc690b7be","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":187,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"547ebb9a-d4b3-4de3-a29c-9124e7bde249","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":187,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"bebc00f4-114d-420d-89a3-c25c52870fcd","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":187,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"8b47abae-4610-4e4c-8e03-bcf77dec6a00","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":187,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"0f826a36-d793-425b-9670-0f4c2f8ad1ec","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":187,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"596954df-4c98-4cb0-b1ce-527446f1a5e2","block_type":"box","text":"from these guidelines based on market practices.","page_number":187,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"df5dbb87-e62e-41b3-b38b-7095af986772","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":187,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"28701217-bb74-41d6-a19c-4c1280f6fd1a","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"4736bd5d-8fb3-4744-905e-fb0c15948acc","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":187,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"1c182c2a-2249-40b0-b427-db25f3830407","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":187,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"276ceae7-ba7f-4890-ab51-55d7dc5d6c1e","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"5602d204-fcd1-47b6-a76f-e99319f1d95f","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":187,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"9bd2bbb0-d3cc-4889-978f-20e5c4e707b9","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"2a5fcbc1-3f6f-492b-bc84-01ac9c143685","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":187,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"2123aafe-0862-4e7f-ae81-3d7d399bc88a","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":187,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"9b84a703-ae91-4142-97e4-0fc6a2bc249c","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":187,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"a9bb29c6-5630-4ec1-a2a4-3f864254efe2","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":187,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"50fe5146-0c8b-41c4-8895-ae773de7e12a","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":187,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"3bebe9d8-aad2-4b6f-b2d7-c1618f3affa6","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":187,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"f60ef2c9-e26a-4ace-b013-7c8e6a36bed0","block_type":"box","text":"obligations.)","page_number":187,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"d8feb62f-b704-48ed-a174-df85de71036e","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":187,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"538c3b04-7065-47bc-9639-17860505cab7","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":187,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"67050f8a-37ba-47a6-8ddc-0498edc6b2e8","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":187,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"08b06d94-0298-4c16-9e45-b01264e8486e","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":187,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"3ad73761-0157-4639-8e5d-51046eae6fcf","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":187,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"1b55f66a-4aee-41fb-b00d-c088d2f553bb","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":187,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"5d4e1a6c-ed61-416a-9836-eea53db1e20b","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":187,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"b25e9c15-018c-4805-ae6c-feb5effe7b9d","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":187,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"4579dd4b-db13-4d7c-91cb-5a8ec53efadc","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":187,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"73cf0c7f-dd63-4447-a928-1adab0a9430b","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":187,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"2085a600-f01a-4403-b4ea-2ee3decf68d5","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"6342fb39-88b9-4f42-8b69-20819bbeaed0","block_type":"box","text":"BB,","page_number":187,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"3d6067ea-948e-4c38-ad74-26afcab0d559","block_type":"box","text":"B,","page_number":187,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"04c95a38-cc94-4836-8e17-803dc1a65604","block_type":"box","text":"CCC,","page_number":187,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"e3c19ffd-c9d4-4ebd-8726-d03ac0081004","block_type":"box","text":"CC,","page_number":187,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"9f81a040-7e2c-4bcd-aaa5-26478a48ca03","block_type":"box","text":"and C","page_number":187,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"c63c211d-423c-4dab-8520-2a2c03ef5d4d","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":187,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"8b0b49f6-a36a-4175-b19c-0f38f160aec2","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":187,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"0f0c15f4-dbc0-4b0a-8d30-3b92944f265a","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":187,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"bab4b135-f579-4125-a918-765f03e0490c","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":187,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"17a53053-0105-435f-9db7-585f72c3e971","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":187,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"c32fae29-69b8-4371-a28b-97411e36bbbc","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":187,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"ceb55b5b-ecb4-4392-ac7c-3809a1dde7e2","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":187,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"255fa1ad-0d3a-4971-884e-61790705aa7e","block_type":"box","text":"on the obligation.","page_number":187,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"010d988f-c953-4e81-b687-a8ab6f9b65cb","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":187,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"4a5b6ead-a789-4681-bd29-39f5e02fc260","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":187,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"54914e66-e5a8-4b97-8501-09ff4ff89b89","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":187,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"3051e8bb-d6af-47aa-97d0-a9218e8c791f","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"815543c7-87f5-4c3d-8ceb-92b8a8d37d2b","block_type":"box","text":"A-4","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"53538a91-2013-4816-beb5-7e3985eb0458","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08683f39-f7be-46fa-8e38-4c0854a5a434","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":188,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"061be5d0-4823-47bb-b980-4176626e8d0d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":188,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"fbe342d0-14a8-48cd-b652-589087dd285b","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":188,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"60487411-518d-4111-8eba-045fa5ab9775","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"447b04a5-ac32-4b55-9aa5-dc5d78b2851a","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":188,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"1b19e315-1c13-44de-9c45-19d378c44d74","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":188,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"9d8abd8a-96ca-4727-a3b1-5ec0deea2857","block_type":"box","text":"anticipated time to default.","page_number":188,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"67c98b5d-9340-4ea1-9a38-bc95f6bab131","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":188,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"ad7e552b-3e12-490d-ab62-14e3e7e55741","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":188,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"e4c1979d-5aef-47dc-91d3-3705c418ea7e","block_type":"box","text":"higher.","page_number":188,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"7059a311-d03c-4469-95f0-733f74718a1b","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":188,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"94cad10c-b6ab-4b49-9355-222bd26ce2c2","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":188,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"040b75d0-934f-4c96-8bde-49a33140158c","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":188,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"0eaa1e2f-001e-495e-b6d2-ec5418cdac8c","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":188,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"887a280d-d8de-46a7-96e7-ed5f17e929a6","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":188,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"d58c07c6-f475-4a6b-a0fc-aea1079839e9","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":188,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"20f39981-6e04-422f-8172-9f5891d38950","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":188,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"35f954ff-a4ac-4996-9b32-6e83d96fc274","block_type":"box","text":"restructuring.","page_number":188,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"390d16f8-49d6-4da1-90f0-7a0bae1869fd","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":188,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"d0226ab7-5c3a-4e51-aaf4-179853ff881c","block_type":"box","text":"standing within the rating categories.","page_number":188,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"a7df9474-6317-42df-a6c5-dac97cbb7cf2","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":188,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"f7e000dc-caed-41f0-978d-3a8cef943743","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":188,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"7fe7626f-13ea-4974-88be-b167921a1cca","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":188,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"cc1891a2-2d8b-4c69-827d-e8a556cb669c","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":188,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"dd7b0354-badb-4859-88f8-82fd6d1de0f2","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":188,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"f16e1f1f-3042-4463-bdef-bf7a5aaea3bc","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":188,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"eaee5757-cd9d-4d11-ad6c-c58bf8d3e565","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":188,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"8afec5d6-1ec2-41ff-a18e-bfa2c866d7dd","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":188,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"a6213f31-9376-4f0c-afb5-5e80dd97c041","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":188,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"35bf65db-c78d-44b6-8905-05b5a4eb1c33","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":188,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"5a722809-a825-4d80-bf5d-608b905397c4","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"b938bb28-3e20-4e7b-abdd-9c4aba0d0e06","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":188,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"0f4b6ede-ba4c-42e9-a249-69a3d5654ddd","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":188,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"fc75aa07-c0b1-48c1-bca7-20942301ce9a","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":188,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"84aeb0d6-3e77-4eb9-bcf6-362676897207","block_type":"box","text":"financial commitments.","page_number":188,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"064aa097-9af0-43d4-8979-e695c3545d67","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":188,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"670feb01-62ab-4fb4-9afa-331fb649fafb","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":188,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"95643b32-a8cb-4f19-9ed1-27987a037343","block_type":"box","text":"commitments on the obligation.","page_number":188,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"c3a620cd-fbd1-4f97-a2c7-3069de0c3254","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":188,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"5434e6c3-f162-43f8-95b6-b42c7cfe72b7","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":188,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"d640a8ea-a641-45c4-81cb-05b3f32155ee","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":188,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"be4a01b8-667c-4644-82ed-9c0ec159728f","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":188,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"023a8664-b30a-4d43-a389-c71555d3419e","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":188,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"9f8eb66f-f010-4a25-a840-9b24dba35a63","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":188,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"9a06b33f-04fb-4149-abb1-100b388e1fb3","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":188,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"4f77ddd4-1782-44e6-8b1d-7004321b46e8","block_type":"box","text":"debt restructuring.","page_number":188,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"18c6a92d-d199-4831-b64d-99825dfe84e4","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":188,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"dbb2606e-c913-44ca-b9e7-b454dbd1bd0a","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":188,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"7dc978be-2a17-4354-bb67-fc1f2edbf177","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":188,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"5e6e02dd-b98a-497b-828f-f0b9aa628233","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":188,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"d968e6cf-f858-488e-ab4c-fbfdcee39895","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":188,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"bc78ed75-5fe1-482e-b10c-8e2dcd1dc704","block_type":"box","text":"A-5","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"58d86373-5155-4df5-94f4-c52cee66040f","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04c18c5e-d987-4a37-bf4e-f46ce7cd90cf","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"798af721-cbc1-4cfe-a29a-977e2eb9614d","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":189,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"8064c301-001f-4f0e-a78d-86dc60f0f3bb","block_type":"box","text":"as a note; and","page_number":189,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"6e87c15d-89ce-45f6-80e5-488e99f046d3","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"1384d360-6b30-4d02-8917-3961a7b779e5","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":189,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"4ac5f010-864e-464a-8dd5-f510eb576552","block_type":"box","text":"treated as a note.","page_number":189,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"79ba89a9-7727-4f7b-85b1-308962352a5c","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":189,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"591965a7-52a1-46cf-92f2-75a231ac3a59","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":189,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"d0fb6a2a-901a-4361-baa5-0c45173bcade","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":189,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"e13ece7e-d48b-4a4b-9fd2-ca05f52428b3","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":189,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"5df0e1d1-fd14-42e3-8037-fd550424c100","block_type":"box","text":"economic changes over the term of the notes.","page_number":189,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"37ffd997-1f25-4e33-9248-aa0d647826fb","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":189,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"53a44ce3-7836-4768-b1b1-91d85782821d","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":189,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"a8329c80-48aa-49f2-a702-76dff6b28066","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":189,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"6ba2c54f-b4fe-4365-9ae8-417bfd035e8f","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":189,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"6d3ea7be-5e1b-495a-b7b3-f7d42fd7113f","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":189,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"290d5f08-e3a3-4989-a7da-96cad5097099","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":189,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"3f80c18f-b324-401c-a54e-4bf98305f1d5","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":189,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"5ba7b6d1-903a-4101-9477-f2d317bb6a1f","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":189,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"6ab09c4f-570c-424e-95e5-85fa93703b0c","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":189,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"3d3bdb3d-279b-47b1-97e3-843f59ae3cae","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":189,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"4c50c706-2c4b-420a-9c17-8a5531592871","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":189,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"65303ce0-9c26-4dab-b20c-e3d75d188348","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":189,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"25282a17-96fb-46bd-bb49-04df170b84e9","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":189,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"8edfb57a-4cd7-42af-b405-578427fc032d","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":189,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"017fff12-1fe0-4cec-bf3d-c86f5756e7a7","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":189,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"359d9b23-04d7-4a44-95d8-9fccf4754604","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":189,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"fa95ba70-3792-4421-a11d-df442c5c913e","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":189,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"b44b2d06-68fc-448f-a8a5-701e14e0b778","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":189,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"70241ef0-5043-47e9-a244-c19c60fbe786","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":189,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"61f8c397-7275-4d77-98fc-da4e9b4a8edb","block_type":"box","text":"receivables or other financial assets.","page_number":189,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"4ae159a5-b63a-4e7b-aa78-67073ece9b4f","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":189,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"b35ff728-ac76-4b42-bfb0-b60430b38182","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":189,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"7361ffd0-c00b-4db6-aace-cea355a2d9a7","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":189,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"2ec1dec0-18f1-423a-bd35-3f173d4e043a","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":189,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"82cad769-f86a-4e22-8d56-c52ca32d2b1c","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":189,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"c0d58515-bbf0-4fc7-b39d-adbea1901b7f","block_type":"box","text":"occurred.","page_number":189,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"8772f89a-77ed-46e5-86ca-3e9d76207784","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":189,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"f6759e5f-28a3-460e-8c2b-724392d9132a","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":189,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"4c7c3647-c377-493c-8f55-ca4732028117","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":189,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"8de49120-d331-45d7-9813-e5fb72fe43cc","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":189,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"df8ffac5-c1a5-42b0-9447-cd07787d29ee","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":189,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"763af7a9-2481-41bd-83ae-c5e90b79c7cd","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":189,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"0356930e-19c2-4492-b0b7-7faf4d5ea8e0","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":189,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"1c719428-77a8-4658-bc9e-aea40fcdb2bc","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":189,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"a1127aee-fa34-4901-a84d-844d5f954f19","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":189,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"bfeb4f2b-2743-4a21-a37d-660385f2606f","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":189,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"e9134889-0e41-4b8a-8f7d-5fca4b91aff4","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":189,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"5e2d94f1-fcd4-4eef-9717-b0b8e9ad47c9","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":189,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"bee3ad05-abea-4966-8353-13a0cca81a4a","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":189,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"a5903ff4-c2f4-4069-9545-2e65920c1d22","block_type":"box","text":"i.e.","page_number":189,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"726fb633-d712-4bfc-a67a-d59a5aa2c8fe","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":189,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"aa98067e-683d-450a-955d-a02439a868d5","block_type":"box","text":"the obligation’s documentation).","page_number":189,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"4685726e-d6b6-4dc6-9ddc-cb3f8cde1066","block_type":"box","text":"A-6","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a2a91d97-f529-459f-b545-55d3c22c47e6","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35c755ba-c88a-4618-a9b4-ade3459ab772","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":190,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"4337dfc3-93be-4166-8d08-820d72e0997d","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":190,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"84483b04-6576-43d0-b169-b55155161ce8","block_type":"box","text":"agents in the form of a rating letter.","page_number":190,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"bd546753-6824-4ec0-8952-05ffe5c6f14c","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":190,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"12e14c76-9fff-405d-a2df-971607304cd5","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":190,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"a1e14576-41d7-4a53-b4d8-267ad6d0ee07","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":190,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"89893f08-f63c-45e2-91f5-7446b2d7e756","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":190,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"846ee164-293e-4dc5-99ce-1a1ca8083350","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":190,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"240b87a9-7b77-4cc0-84d3-3683d26dec91","block_type":"box","text":"e.g.","page_number":190,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"05dcf340-fb45-4ba0-a599-cf58d387afa8","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":190,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"6104e3a3-0d26-4146-be16-6b19bc715fe7","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":190,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"322b3814-64ff-4917-b988-33220351af63","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":190,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"9058d9f0-da05-48b5-9683-571cea707eee","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":190,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"3ff5011b-ed1e-446d-be3d-dbedfb69f1ea","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":190,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"fbc20e62-6316-402f-8aa9-0d8cb61e4b67","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":190,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"ba4f22af-c52d-4c69-b7d1-bc87d5dbe03c","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":190,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"89f9575b-2bd8-4566-97a4-66c2b48b27e6","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":190,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"4ac0af60-ad15-4ac6-8c32-91f86a7fbccf","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":190,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"4a42a8d8-7f4e-431d-a548-f5e52e47d0dc","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":190,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"aacb3398-591e-45c6-8b4d-0d43dca912dc","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":190,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"f8bbd338-2dcd-49f0-b18a-154f289d6eb5","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":190,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"5c3084b7-235b-40ca-ad67-f6ba20971de7","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":190,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"9b30f173-295f-4918-9c54-5fad5464d77b","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":190,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"9d9a1958-da11-4419-a355-06bde2b29120","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":190,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"8dbf3241-9281-465f-9b2e-dc63ae6478ad","block_type":"box","text":"Ratings.","page_number":190,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"9ddfa8c5-22d9-4ca7-9437-d8cf3e42e15a","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":190,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"3876281f-0498-4c66-a0bb-962554551d1a","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":190,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"97be3b32-e3ea-41e6-ab9a-fa711e71a55a","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":190,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"6d609d29-cddd-4d75-8fab-2c71fe1409c2","block_type":"box","text":"obligation ratings.","page_number":190,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"f672656e-b604-4313-9f68-1d31ea67a7f2","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":190,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"43b75fab-05ea-4dea-8423-88b6938f9a13","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":190,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"9d90a327-3f60-4c53-a59c-08379d12977e","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":190,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"d7c2bebe-cfc2-4a65-af35-c1bfa9768428","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":190,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"0e2c9f75-46c6-459f-a911-4824fe6870d5","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":190,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"ae1760e1-6bb5-4d61-af48-25e556038fb6","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":190,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"115cb558-6444-4348-b7c8-fd95a6965766","block_type":"box","text":"to foreseeable events.","page_number":190,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"00b5fa94-379b-4718-b5d9-ad334827b01e","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":190,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"ca3cb604-bab6-4d57-aafc-797d5d7b13cc","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":190,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"519f1c4f-fdc8-4954-bbef-1347d49cafa3","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":190,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"371fa6a6-3a4d-4ca9-a827-00fcb87055b1","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":190,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"2fb91852-96f6-4117-b501-4754eb71db16","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":190,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"2440e4e8-25b8-48d6-9b56-4871e083b817","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":190,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"8e280a06-b0c3-4754-ae65-367fa0dc2d8e","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":190,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"f139edbf-f0dc-43f5-8087-65494712c007","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":190,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"0a56a680-002c-4108-868c-c959da09d9a4","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":190,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"c364bdd8-9bff-4ba3-bfd7-bac02387dd37","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":190,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"41c2f258-8c61-401d-b733-93ea2f0ae6f1","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":190,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"b60816f2-8c02-4964-b4a3-b470fb9ba5c4","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":190,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"7228b0de-c280-4972-9517-49e1859719fd","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":190,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"15df065a-1784-467f-b22a-8ceec46b5419","block_type":"box","text":"possibility.","page_number":190,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"c6eb25c2-33c4-4876-8dc1-609183358ed3","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":190,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"f27312d3-9b05-4d84-9c68-d127940590f6","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":190,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"62dbafe8-0675-49cf-a975-3a02b61cda29","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":190,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"6477de17-f9da-42ea-8060-7edc62c079e6","block_type":"box","text":"A-7","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3841b951-94a2-4d90-8e18-c8a6c694008e","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e934c1d-2cb4-41bf-98aa-b837b41234e8","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":191,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"ef003856-8b28-4dfb-b039-d965313fcbb9","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":191,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"e04afefe-8e73-4519-98dd-9edd98c2e119","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":191,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"bacf49af-6f72-4667-9443-7126f2005de0","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":191,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"fc124671-2cdd-44e0-a211-efe6a9e3f8c6","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":191,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"3bf44dac-2c2c-410f-bf3b-f764fa8fa3c9","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":191,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"e0586915-d6c4-435e-acf7-705fdca4baff","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":191,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"c148bcaf-6b16-4e9e-835a-e9291fbf17ff","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":191,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"4d5378e2-5ba4-4f15-95a5-cfd04ea40a02","block_type":"box","text":"relative status within major rating categories.","page_number":191,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"b7e56539-59a4-47b7-9358-4b05494dda7c","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":191,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"6684d3f0-8596-4031-82ff-e842e02a86b2","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":191,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"c590af9f-9e4a-4eea-b666-e03c11c96dcb","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":191,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"8db7da1b-3352-4b30-b77d-ca72827b8871","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":191,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"fe615a9b-7d7b-4685-b874-bbc176a2d281","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":191,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"cc530d16-0c72-4f9c-9f44-ecf78cba6594","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":191,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"dd074492-e917-48f0-9454-86f0ced68a29","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":191,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"c0734eae-51c2-4b80-9c03-0540b1a4e869","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":191,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"43bafbdb-0a72-4d86-859a-59a55f40ee1c","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":191,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"57e3de34-bd95-4052-a6b1-0434efe41858","block_type":"box","text":"finance markets.","page_number":191,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"0d55bdfe-3ad8-4d5e-ab3b-f3e5cfbe6ebb","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":191,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"061b8365-44d4-4e7b-afe7-32fd7143967d","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":191,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"4652b146-4ad2-4ad5-ab35-78e18cfac86a","block_type":"box","text":"adequate.","page_number":191,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"e7396799-071c-41d7-869f-fb80db90bc93","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":195,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"bce1384d-d2e0-463b-9ee7-42de87fcfbf4","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":195,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"aeb11ed0-7612-4bc9-bdbd-442bb18ef26c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":195,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"daf8804c-4fec-4c50-b99f-3283d029f87f","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":195,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"dea27aba-27c4-476b-a374-ba355ac5ea17","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT 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with","page_number":196,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"6beecf6a-8b1b-4c80-9b59-f385c044b894","block_type":"box","text":"issuers.","page_number":196,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"695cc67e-a336-4329-b0f8-b0cc99340688","block_type":"box","text":"1","page_number":196,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"b897b80d-62e5-46b0-81b1-1b4d199cfc89","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":196,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"1cccda63-2beb-49f0-a74b-104fac7c3e76","block_type":"box","text":"2","page_number":196,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"f1292e64-b946-4d74-b885-40fda61b6278","block_type":"box","text":", providing exper tise","page_number":196,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"027b9434-7c97-4ec2-b15a-15c45e85948c","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":196,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"b696a2fa-04b6-449e-807e-2886e498d2af","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":196,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"1ed3c26b-34cd-4230-8f11-a422fe583b1b","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":196,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"65fbc75c-85b5-4bb8-9978-47537f24e78e","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":196,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"32da54ef-490a-4c6f-a8e2-f48873833370","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":196,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"60a496dc-cc17-4932-9dc5-5bb6f35ddc65","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":196,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"9b01ae7a-777b-419d-a8f4-5024dac43c04","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":196,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"4c59040d-7fa3-44b9-878a-452ba9b7f066","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":196,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"7d99984e-6c10-457b-95b2-4d7447c82457","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":196,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"d1df5667-837a-40f1-853a-f88e4566d587","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":196,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"0b85330a-a0b4-4622-8d3c-e3f7e8151e65","block_type":"box","text":"1","page_number":196,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"a25340ad-2fda-4d04-b8bd-5dc2a27c4be8","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":196,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"4b8883ed-1408-4e7e-8629-2e48fc1b94fe","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":196,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"3c9251d4-8cda-445f-ac17-81dbd5a1406a","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":196,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"af641bfa-e78d-4f00-9627-977d56854494","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":196,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"25b912bc-ce26-4eda-976a-126bb1151284","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":196,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"13aaa187-e125-4f1f-9664-1e7e01725b31","block_type":"box","text":"2","page_number":196,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"10dd1880-b66b-4211-8665-3a697d966765","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":196,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"3013c53c-2e72-42b8-86a3-094ce1288834","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":196,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"c6d58b54-3940-47e6-9b76-f71ae2449438","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":196,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"457b50b2-363a-48c7-8591-3d4078e5a223","block_type":"box","text":"policies.","page_number":196,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"2caa66a5-c4d2-47cd-82bf-14fec8211562","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8246d3f6-aaef-4cd1-97b7-2d427746b1fe","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b41e8547-124b-413d-a9d2-b1103c84d6fc","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d397cd32-56fe-43eb-a308-4c9f78eac197","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":197,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"589b1ae2-6f27-4923-8224-bc2b3a5c48d8","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":197,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"b355c973-2ee8-4884-9aaa-a88ec1b2b2f7","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":197,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"c3381ed9-a7af-4513-b242-473dc62547fd","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":197,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"57bcf248-d631-483b-a3f4-b115e91e16b8","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":197,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"a2526d3c-dff5-49fa-8585-1a4cb0389f76","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":197,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"04fc87aa-c3f0-4d0b-b8a4-55d0b1a31aa2","block_type":"box","text":"this work with research, data and analytics.","page_number":197,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"dc4b059b-a0cc-4171-9c19-14831d09dcd0","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":197,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"d7942460-88ce-46c8-a160-227a6dea93b8","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":197,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"546013d1-940e-406f-8d8c-4ad783535aca","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":197,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"b0df61ae-d52d-42f1-88de-397bff6ff6cd","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":197,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"075fab21-9583-425c-95a5-3e49b66c3437","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":197,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"84748345-194f-4b70-a25c-a041dda21969","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":197,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"d6621176-1c0b-4ef3-8d1d-6b322b83ce20","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":197,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"2633b716-4202-40b5-897a-e18268d69b0e","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":197,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"2a4943a6-bc37-48bd-b15a-f03cf11ce702","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":197,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"27f26618-af3f-46eb-9ac1-26a02d294a3b","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":197,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"894f4894-a34c-42f7-9bc9-002ca6d78610","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":197,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"a818ef27-4b45-4872-a020-6d7006d2e75f","block_type":"box","text":"shareholder meetings.","page_number":197,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"2ef8b979-90ab-480a-9e45-ae7f80715192","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":197,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"0a12fc94-c8b5-4104-a8f2-5a504637c8eb","block_type":"box","text":"investing.","page_number":197,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"55420935-3492-4a29-ad7f-9d2bd370ff51","block_type":"box","text":"3","page_number":197,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"1082d957-f1a7-4a94-9aaf-1b6091b35f43","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":197,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"f9c121f7-0fc5-4064-8447-8620557e5b18","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":197,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"c5924a05-02e5-4d3f-a734-ccfb9998ed3c","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":197,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"4029cbb8-156c-46fa-b537-cb268ffe9b50","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":197,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"10eb404e-7853-4ca0-93e2-aade5ed65d16","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":197,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"8c840b73-0dad-4182-ac83-10e9c2db6bec","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":197,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"28cc4b70-5afa-493e-b001-9038db31bcc9","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":197,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"52f51191-1e3e-4ad3-bf04-3c90b393e095","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":197,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"82c20351-2150-4ee5-828a-fa806d750b63","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":197,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"0670615c-da96-489f-928a-146220e73ff6","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":197,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"865b9136-1a2a-43a3-a448-5c26b8224bb3","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":197,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"2ed483d5-a687-4644-983b-b51bfa1be2e3","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":197,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"7db96275-3085-42be-9a69-f09c9e36b377","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":197,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"f4a3a19e-4b3d-4486-876c-e6f404dc849e","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":197,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"699f42e0-aa20-429b-8769-c79eb5ba20e7","block_type":"box","text":"management teams and board directors","page_number":197,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"a278959e-e5ff-4493-9633-a12d4be51d44","block_type":"box","text":"4","page_number":197,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"051cf520-36ec-4522-9c32-53f35e720ca0","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":197,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"ed52f0db-0cf9-452f-8a8f-23e8726d4f5e","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":197,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"8eaf0b32-70c9-4f7d-aaca-dc421668bf27","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":197,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"3cea8966-1372-4e8a-9605-7fdc9934b741","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":197,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"5824fb59-5fe8-4d68-9245-ee7bcbc23557","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":197,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"761db170-2c0f-402e-8cc0-ea354f6bc9e4","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":197,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"4109c945-b76b-4f35-8b8b-c65dbb0e5dd8","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":197,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"57d0b354-f636-4520-90d5-3d464083b77f","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":197,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"6195fc7a-a1a1-4daa-8fb3-6522fce183ff","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":197,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"5577f9a7-5417-4175-8b94-3d8883c5c1fe","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":197,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"aa291593-86de-435b-916c-8a1a7b1583e2","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":197,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"36769745-95d6-4ad3-bb66-4b90f1b8c7ba","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":197,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"48deb61d-f542-4209-950c-41aef87b98c9","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":197,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"dcc7bdbe-b801-4f08-aef7-c738f7473ef1","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":197,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"72937d5b-7b82-433d-9a63-92fce5a0dd74","block_type":"box","text":"3","page_number":197,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"3ed19573-23b9-4ad4-99b5-063619dd5437","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":197,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"9aa7bb8d-679d-4571-a2aa-aa53d26a614a","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":197,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"0e4f66e3-720c-4155-b399-b2b912a15554","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":197,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"9b1c8092-8e69-4527-b7be-54769128a43e","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":197,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"5ef4a4bd-4f5d-45d0-b8e9-d379fb39d85d","block_type":"box","text":"4","page_number":197,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"d95cd6aa-9939-4495-bf18-24c569a80560","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":197,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"5694b64c-6532-4e3d-97d7-cf0cccbca0d1","block_type":"box","text":"boards and their members, where relevant.","page_number":197,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"dd1de096-d006-4f93-b675-5e466f9319d4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a031fa39-fd15-49de-b2f0-a30b6736033f","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"cb8475bd-1b68-4aea-b529-0c8da0a24f72","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84f08a49-0921-4af2-9759-2f597a35d5e0","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":198,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"6139ce38-34f2-4cc2-b271-a215f23d97dd","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":198,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"9e96178f-cc47-4488-baad-9b88d9aa58e8","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":198,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"c7c12e0c-c322-4891-b68a-d6e1e8012811","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":198,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"746037d3-60fc-43b6-ad1e-4a83939ff933","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":198,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"b5114bbc-8120-4ca5-a1aa-edae7dd5c6e9","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":198,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"3dc9e3c9-242c-46e4-b05e-3cb77cfe0c10","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":198,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"4a36ee1c-d7a4-4626-bfb5-a7e840ed1f42","block_type":"box","text":"5","page_number":198,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"f92f621d-552c-4f56-8010-f10d2a7baa1a","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":198,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"f4cf8f22-4231-4773-8b9e-dc3c12b901ec","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":198,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"45bc1c3b-7144-4582-aad1-5465486dad3e","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":198,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"9bd460ed-4d51-4f84-9844-d071aa5eac79","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":198,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"8be21963-6ed5-4f56-bebc-fc113532eabc","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":198,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"401048e0-2f24-40d4-a4e7-68280d56e662","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":198,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"79aafefe-9a3a-485c-9a92-f25c82234e04","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":198,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"f798e630-8e05-40c5-a599-2e2441183305","block_type":"box","text":"5","page_number":198,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"5afa2710-c494-4a6a-a0a6-09cc4d0402e3","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":198,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"6ba6b91a-7a89-4155-8c83-2a2df5dc29ba","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":198,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"1c475668-f91a-45cf-8fb1-7359867e7adf","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":198,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"4dac2bf7-8c82-489c-b601-2357251e8253","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4a04cb37-0ad2-4fea-a2cc-79e9a6c78c8a","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"cb3d7f99-027a-4e72-967d-9efd48308728","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cbd9e41-3604-4881-9249-f45bb75c2808","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":199,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"a9f99daf-2f50-4916-bdb2-ef475c79c242","block_type":"box","text":"Roles and responsibilities","page_number":199,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"672f9f3c-dd74-49d2-9ac5-d8659511d9b5","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":199,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"cfd60856-dd69-4847-8838-6a9c19a959e4","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":199,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"f6e734ac-e899-4ad0-998e-c2c8f9b2c1c7","block_type":"box","text":"6","page_number":199,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"9fde4f1e-869f-485b-8c0f-8b811cfc7872","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":199,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"e2eff217-cbd0-48fb-b4af-23bcd5b10c56","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":199,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"c7b2802f-454d-42d1-9041-af496337b883","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":199,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"5ee5a91a-a9df-41d3-ae70-02ea180e8aba","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":199,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"9850dd9b-18f6-45e3-83d3-2a613f5fd1d1","block_type":"box","text":"per formance over time.","page_number":199,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"36b556ed-4279-40af-8727-12ea61eb4085","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":199,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"53fc5088-df04-48dc-8a7d-c9a8ef88a8b0","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":199,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"7ea5a3d8-7676-416e-9003-bc1c891e1e2d","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":199,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"259934ab-7f42-4f57-a7d3-82448ed7b791","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":199,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"de5ead55-2076-4a66-a7b5-90a2b64ee334","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":199,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"2160195b-b068-4f6e-a73b-ec01bd76f673","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":199,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"76b0ae9e-2437-443d-a0b7-dadcc8edf7d2","block_type":"box","text":"Composition and effectiveness","page_number":199,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"f63ca1e6-7a73-4c25-8a81-3e12ba612b7d","block_type":"box","text":"Appointment process","page_number":199,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"53d3c2c9-6399-45b3-8898-963e59d6272f","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":199,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"37c6cf89-956d-4275-8cbc-94c02d18c650","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":199,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"a012be7e-c386-4011-af9e-e6c4359e3663","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":199,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"f10d3ce1-9e6f-4f77-b839-7355b2f76cfd","block_type":"box","text":"e.g.","page_number":199,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"9c05d916-38f0-4a3d-8e25-340a7fb39446","block_type":"box","text":", sector, maturity, geographic","page_number":199,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"df6cdaf5-bf4e-4caa-bad5-bbd033e5559a","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":199,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"2f687c7f-f5b8-46cc-b419-3c38e06f04b9","block_type":"box","text":"e.g.","page_number":199,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"a66c6782-0d8b-41e4-aa3b-285b8139599c","block_type":"box","text":", financial exper tise, industry track record). To","page_number":199,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"12a48f7f-9316-4598-8040-048018610f11","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":199,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"fa192f25-0d2f-4d73-bf05-7c87b8c38eb7","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":199,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"866f45b1-2741-4da4-8eb1-088477bdedb8","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":199,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"1a47673a-ad6e-407a-a1d2-ce6ca86a63e3","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":199,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"83313bef-5799-4466-900f-a2107e6acdc2","block_type":"box","text":"and local market requirements.","page_number":199,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"cdee81cd-f0b6-46a1-8284-84e5f4245ad6","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":199,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"f4a2713a-a64e-4ba2-ac33-dde69e0f5c42","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":199,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"b2897422-bd57-437d-a19e-d35f1e2b06d3","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":199,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"724ca900-47c7-434f-8f6a-de72d82e6099","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":199,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"e5218b53-8726-479f-99d4-f897b1aed6bb","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":199,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"0807f02d-2a2b-49cf-9f74-81f4a228bd5d","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":199,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"50ff1720-bf55-4aad-87cb-e4398eb5407e","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":199,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"61f9735f-610e-496f-8338-5ab9c68431e7","block_type":"box","text":"Independence","page_number":199,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"6106bc70-f577-4726-bfb4-0a9476c795e9","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":199,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"f907d4e1-d2b8-4e8e-b877-530be6fa03e6","block_type":"box","text":"e.g.","page_number":199,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"c1a7b3a4-e998-456e-958a-52f21a603c67","block_type":"box","text":", government or","page_number":199,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"c1466571-3372-47aa-b2af-4b7f75473c27","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":199,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"1b05d89f-5a25-4e58-8a05-39281fbfe529","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":199,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"02a252bd-bf77-4b07-8649-c08d24962585","block_type":"box","text":"conflicts of interest or undue influence.","page_number":199,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"0d0ad397-654d-493a-b643-44789ba6a257","block_type":"box","text":"7","page_number":199,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"52ea27f5-37f3-4901-81a9-ddb8da94ca3e","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":199,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"61c1c828-f8b0-4875-b9c4-25172b7dd2a6","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":199,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"a409df53-a522-41df-b1be-8ac76eaffa7e","block_type":"box","text":"independence should meet those local requirements.","page_number":199,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"1f2cc01b-959a-4e68-a805-e1a80894d187","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":199,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"2faf5127-f566-4ad5-a75d-968856900f28","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":199,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"44b81309-670a-46fa-a631-5c1506c7b5bf","block_type":"box","text":"composition if this is a perennial issue.","page_number":199,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"87c443ba-4d6b-4cde-aac9-f96758243eeb","block_type":"box","text":"6","page_number":199,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"77b3e5d5-01c7-42cd-a58a-ddbf3cb71991","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":199,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"1167bd04-2948-4d08-9246-743b093476c2","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":199,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"469bd4de-fb2a-4e9c-a485-f7fce80e88fe","block_type":"box","text":"7","page_number":199,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"04ac2b58-d314-40bd-b4f5-cab808e72b31","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":199,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"f3beee15-77cb-4fbd-9a37-299f1933817d","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":199,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"7b55eb8f-37e6-464e-a068-cd59ed085d5a","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":199,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"18be506c-2117-42f1-9071-e0727f310d16","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":199,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"e6d37786-b5fa-4f3f-a113-7212658f7b86","block_type":"box","text":"of the company and shareholders.","page_number":199,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"aeb4b5bb-1baa-4cc0-8bab-e97673bc3ac6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"253b24d7-c820-4e81-ab13-ad1ee38114ca","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"cfe06689-6f80-497c-9bad-3ac0eca4887d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d96a06a-7da1-485a-9da6-89171a6d6259","block_type":"box","text":"Independent board leadership","page_number":200,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"5d06b348-aa52-48e2-b827-273ca10e5778","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":200,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"c9eb6a43-25b3-4826-8834-6ef0dfa2b200","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":200,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"e6e94804-53d5-491a-bb01-027e672188dc","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":200,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"7e4333b6-55b9-4a1b-b766-203cfa100a1f","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":200,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"584abe63-edad-469b-885e-992fab530d44","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":200,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"92fa0c69-f0f6-4ccd-9c9f-5c3c33134f01","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":200,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"8b003402-7155-4b2b-83b2-b05c0f5460b7","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":200,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"aedeb1b0-b5a4-4579-9a17-646617f3e8ae","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":200,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"07620625-0f47-4f20-9fd8-ef6bc1499526","block_type":"box","text":"how it serves the interests of shareholders.","page_number":200,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"56cd13e7-9cde-40be-bf7f-48e65f2d97d5","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":200,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"0f525414-d573-4459-a447-4699c459e97a","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":200,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"73108592-5b93-4521-89f5-f8b3235fa5f2","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":200,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"b3a026aa-7ca2-44f3-b080-f264206c58ae","block_type":"box","text":"Tenure and succession","page_number":200,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"a1195618-039a-44c8-bec6-49a78ecd9c69","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":200,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"73a90c20-5cc3-40a3-a67d-b3f1895d0bf5","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":200,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"aeea1511-781e-4f1c-82bd-ab2897c6aed8","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":200,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"34b2b66f-9d3b-47b7-babc-047f80c5adaa","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":200,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"a94fd827-01ad-416c-8fe3-3bf170cadb08","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":200,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"0d6f64e4-26ab-40cc-89e1-a852d8a3f40e","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":200,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"59e0ff28-a9d4-4c64-8373-c0c4f483d7fa","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":200,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"7b0eeba1-db81-409c-8365-1e5f0f45b85a","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":200,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"6fccd928-b077-4d8a-b254-2fcd0e616134","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":200,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"d3439c30-31a1-4c69-a73f-cb1e3a232cbf","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":200,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"a4826c72-f875-45d7-9caf-fe44e5f49cec","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":200,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"f6b4a7a2-8f76-43f2-ba37-5ab1b0726753","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":200,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"1a752a46-473f-420d-b920-df8ee252a958","block_type":"box","text":"for their continued service is not evident.","page_number":200,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"7d6f7e10-95b4-452e-a3ab-ffd1525d856a","block_type":"box","text":"Capacity","page_number":200,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"1c4779c0-ff49-4b22-b8e7-a67fae81a8f3","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":200,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"b98899f8-2630-4d69-86c3-01c72b827b03","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":200,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"75b47e34-7b39-4dfa-bfe7-211ddf56794e","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":200,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"f9949977-ae09-4d74-9833-b4304b9114af","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":200,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"4f3390ed-857f-488c-a2e4-38d5035379ea","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":200,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"ddd06283-ddc0-40f4-a19a-c8fc585d426e","block_type":"box","text":"determinations across markets.","page_number":200,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"b3bd12cc-44cf-4e61-81cf-32e8136c42b5","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":200,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"c2c0aa09-493f-4752-b362-9e4849203794","block_type":"box","text":"their duties to the board and company.","page_number":200,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"4b57f95e-ccaa-4b88-a6c1-7b69aa464890","block_type":"box","text":"Director elections","page_number":200,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"eb2fbf24-79d0-4bf8-855d-209a0279844d","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":200,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"0bd412a9-989a-4dd5-a587-b682074a8a9e","block_type":"box","text":"structure","page_number":200,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"cc768979-349c-4e85-b02d-7aeb528bc99a","block_type":"box","text":"8","page_number":200,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"7daa9829-3cfa-4e25-8ac2-34241ff609c8","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":200,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"ba59d83c-b475-40d1-bdd9-f1e2b652cb03","block_type":"box","text":"basis of its business model (","page_number":200,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"ce93df9f-2180-4b20-a34b-0caa50380a85","block_type":"box","text":"e.g.","page_number":200,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"dc110fc9-2bcd-4faf-b436-ed73305a50fb","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":200,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"5a3d02c1-b05e-4471-be7b-99864681c274","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":200,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"03a952c2-40c2-461f-81a9-3a0a5390de0a","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":200,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"2f9bcdb6-ee60-49b2-bcb3-4778527425ad","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":200,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"e38682cf-8189-4559-a7eb-8c97084fa558","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":200,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"850544ff-9674-4b8f-97ce-387a5de7d5a5","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":200,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"4d3906b7-1a7a-4b77-8c07-64525da00a0f","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":200,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"af353a21-d98c-491c-952f-7f9c4e3b4af7","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":200,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"a66bdddf-5fb0-4316-ab24-2293d0d6f5e1","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":200,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"789b4eae-5d92-488f-b4fd-3d198a228d90","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":200,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"bc2f617d-51d1-4c65-a2be-f5333e7f6094","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":200,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"1d81b10b-365e-413d-a9ff-b9c5d18ced53","block_type":"box","text":"8","page_number":200,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"4ab4118e-85d9-4342-85f0-4d3296f20431","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":200,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"d092226c-a8d3-4e93-a03b-d8c6f4e3435c","block_type":"box","text":"directors stands for election in any one year.","page_number":200,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"34d0862a-5b4b-4de1-9f77-64514f787d29","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2080cffb-ee70-46c1-afc2-936de40efbcb","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2a70976c-2930-4cca-b5a3-afc1d691095b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e271ae3-9baf-4239-a24b-e25e3d0ac343","block_type":"box","text":"Committees","page_number":201,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"3072921f-0ce1-47ff-89ca-0a7ee2952a50","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":201,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"37a5147c-1bfc-4674-a9aa-8574195f1dd3","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":201,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"ed3c5a19-5e36-4bbc-b710-e4e2552a5fb4","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":201,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"df9718d0-891a-48bb-9b8d-f69e6ff67d3f","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":201,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"01afd8ee-e65a-49ee-94da-5ec22b8337d1","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":201,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"1d67b7ba-63c8-462a-94fc-9522ecd92817","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":201,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"3ae68c8d-3b21-4825-ae35-39e9dc10d968","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":201,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"4d699643-f18e-4b54-b5cf-1e40f3012382","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":201,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"db9cf779-dc38-42b5-9ca7-33f1bdfef361","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"4452d904-c7c9-45cf-a930-3be9e5f08bee","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":201,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"907cd8dc-ee6e-4f64-840e-3bf174115557","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":201,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"4898cf03-9757-4e2a-9984-ba3af776f255","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":201,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"8ed88948-7a55-415c-ba51-151be67a6715","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"1ee6583e-0f79-4236-b44b-e9dfab96f9fb","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":201,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"85ff7eb1-f2a9-47fe-aea1-adc49d1b02b6","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":201,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"7fbd7a46-92b6-4e21-a993-911db968cda3","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":201,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"6334d6d3-511d-4ead-9a62-a69745657814","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":201,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"6949ad6a-c4bd-436d-8986-9c19eee41ea4","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"b3369d7f-2c21-45f8-b536-2570f61d789c","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":201,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"7f12f91d-a622-4efd-a823-6d18f6d3192a","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":201,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"11419f1d-c929-4814-a9ef-4fe55f05f4bf","block_type":"box","text":"firm-wide compensation policies.","page_number":201,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"32a4f9c3-a7f9-424f-bb9a-575362332036","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":201,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"9734cd03-f685-469a-8fc1-3c63f4b002ea","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":201,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"00ecb078-0a9c-4351-88c9-34e78d135b24","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":201,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"b29b9ff5-cc48-493c-89f3-717276994039","block_type":"box","text":"Board and director evaluation","page_number":201,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"13d08aea-4075-46d4-9b2a-f685969b444b","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":201,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"5b2da560-1588-494f-936e-1565ec3f9622","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":201,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"44007ff3-3e4c-457a-aa75-24bfdbdb4214","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":201,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"d744c475-08f0-49d8-9b34-1656a09156e5","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":201,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"7aee83b3-aa05-4fc8-81a8-d6901d2e1acf","block_type":"box","text":"a result.","page_number":201,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"234e2024-2b25-4ddc-9a68-6ce3c5f0bf79","block_type":"box","text":"Access to independent advice","page_number":201,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"6e980cae-b4fc-4199-8edc-d9583b827ccf","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":201,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"ee84cde9-bac8-4079-9989-f8e5a13762ec","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":201,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"d5f2f6cb-c9f6-4543-9c36-8b85f8a835ff","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":201,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"ba9db9d4-099f-4027-bd19-155451ade637","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":201,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"dfd5b426-774e-4368-bb64-5f9cf16af8a3","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":201,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"55afe0a7-371d-4b60-bedb-3bfff46b3659","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":201,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"dbe63b97-fcc3-4db7-807e-4ed1d8b4c513","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":201,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"cbd024df-7a8b-4c6d-9bcb-83198eec15a8","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":201,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"6ec0a823-081f-47a7-9527-00be1f9af665","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":201,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"82ec1078-edbb-443a-b7fe-17d3a998caed","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":201,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"6fb61986-b547-44ab-911a-ba118088e4f4","block_type":"box","text":"per formance.","page_number":201,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"98670068-ce7a-4881-8042-a7a35b0c8ca4","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":201,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"cd2de30d-2db9-4f52-bed2-551810f979a9","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":201,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"572e8de8-de92-4aea-b83a-6df4890da455","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":201,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"6cfb2d3c-b6f5-4e28-8182-7b9d038bf298","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":201,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"498e9f2e-17ac-4763-9c67-a23d717481f3","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":201,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"4eb54030-7f04-4c17-a065-d2b53c04376e","block_type":"box","text":"recruit and motivate.","page_number":201,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"06dda418-2882-4012-b50b-93111d169b45","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":201,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"a311ffd9-883a-4e8f-9086-1d0300ab61bf","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":201,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"8f6f6b2f-da22-4dc1-b31f-e2793aceb357","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":201,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"1000578a-3e5d-4963-b1ad-60767a2cd6c7","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":201,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"5c6cfbda-22d2-4b5b-a2cd-446b835a8869","block_type":"box","text":"arrangements include:","page_number":201,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"c6f45a06-5cd5-436e-8099-103fc52162ba","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"8998af96-34ae-47d7-9441-b1db84bee8ff","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":201,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"65d54fba-eae6-4b80-ae61-c3ea6320de70","block_type":"box","text":"the company’s size, sector and market.","page_number":201,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"ca2f57dd-a98c-410b-b32a-0951f53af1d1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"742057e7-7e9d-433c-89e9-a2f2773f875c","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"65403877-4368-4a0c-a18e-d6376aa25b0d","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4cecd9d0-bab3-43bd-afb9-ddbe79912a38","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6df0d2b9-ee47-4dd3-a913-fb2373683f35","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":202,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"837dce59-4eb2-4f3e-993f-f18965ccc38b","block_type":"box","text":"strategic objectives.","page_number":202,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"26f77b86-8102-4205-89a4-667c7698229e","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"2a610a25-73d1-40fb-bdf6-04cf3129633b","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":202,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"32c517d9-7e3d-4db7-a00f-229b1873365b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"92dd29e7-b8c7-4949-b020-39eb1136099f","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":202,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"87da46bf-37ac-4352-be4f-4f88d6dcbd25","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":202,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"c137c43d-ae06-4fa0-ac27-4ea7a222e624","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"5b909dad-b6dd-4913-80ae-7c8adf363e02","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":202,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"6a2d0a32-fb1a-4bfc-ab6c-774ebb2ec47c","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"85a63927-5465-42f5-b314-5e77488ca72e","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":202,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"593e3434-187b-43d9-89e2-9b93814b051d","block_type":"box","text":"transparently.","page_number":202,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"f0ccbdca-f50b-4ff6-9ba4-e429db0bebf1","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"346fdd73-6dc9-4c4f-ad67-0d21876a46cb","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":202,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"fd2a522c-c334-43c9-9e11-1f56971546d5","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":202,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"f789c726-9652-4b98-b5ba-3b562949950d","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"597982e9-fe11-4fc3-a0db-909065f53657","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":202,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"adbace4f-1b5a-44e8-ac98-eb90fdab56ef","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"3c834b9e-c090-4bbc-a482-011020ba31df","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":202,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"4fe884f8-3ef7-41a8-8fbc-5449b22c2425","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":202,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"29eb6322-6960-4d67-b893-740a819e6705","block_type":"box","text":"misconduct.","page_number":202,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"758baa38-f211-4e96-8cf5-913df1d162e4","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"eb1fd06d-2f7e-49e5-844c-7a3bf6b6620e","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":202,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"f0f466c3-83d7-466c-b03b-3c0d6d3b28f2","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":202,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"91d81113-d581-4b84-b5c6-fd40ad74941a","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":202,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"73581dc0-a9ae-410d-9b4c-0ebdfd606a54","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":202,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"4810830d-7d1d-4e61-bbe0-254f2cd56185","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":202,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"01cc43d1-9260-4371-aff2-df351037238b","block_type":"box","text":"committee, or the most senior independent director.","page_number":202,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"d3b114ac-78b2-42b9-9614-252d4531f8d0","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":202,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"7532e44b-00ea-4b09-b2d5-3bb23d0a4b7d","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":202,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"0baf4045-c95e-4a1c-8e83-aee1448154ef","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":202,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"2d8b6e93-67a7-4b7a-a5ea-643a09bc8d2f","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":202,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"33f6acc2-bf6c-4dd9-aee2-e7b38846739b","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":202,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"aad43199-a11c-4198-bad8-ca779bc2156d","block_type":"box","text":"CAPITAL STRUCTURE","page_number":202,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"a185cc86-648d-4662-addf-f30f79b4fe2e","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":202,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"0ff315ce-98a1-4188-911a-94764d4c2dc3","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":202,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"83e13819-4012-4766-9a5c-beda007e5194","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":202,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"aa6d89d1-dd34-44b1-a60e-157a649592fd","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":202,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"e30b101b-c91e-4b87-aed3-4917663e4901","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":202,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"0b113b02-53d0-4723-8fd8-6d0e0764328c","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":202,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"d78ca872-0109-4f93-bf33-56ed4d16c9b9","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":202,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"516f2b0a-11f9-4e93-b365-d98691b9839c","block_type":"box","text":"Share issuance","page_number":202,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"475d9743-b71f-4c86-8eac-422db1644835","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":202,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"3cc50984-6f31-4d0f-8684-0779f32a9552","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":202,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"3d6adb39-69b5-4816-ba4c-2156ae30ca9c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":202,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"fe8923c5-ad72-4b4c-999f-fe7d11b72477","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":202,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"85a968f4-41ea-4e40-b050-ca3fe57ce6ce","block_type":"box","text":"market environment.","page_number":202,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"b1cbb881-4dce-4687-9cf5-a528480e9e14","block_type":"box","text":"Share buybacks","page_number":202,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"90c451f2-0f94-4dd2-b07b-975fed396a91","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":202,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"e0030ae9-f0ad-4731-94d1-83e1122fd6e0","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":202,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"9b50c457-9b2e-4cf7-a220-d1b50b3989ae","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":202,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"42ac9d4d-a254-4ed6-a585-b48682b57fcc","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":202,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"e915bbc2-137b-4c6f-9a44-9877742d177d","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":202,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"55f34ca1-c7a3-4fd0-818b-fcc0cf7d9088","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":202,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"dc1509a0-508e-4961-a52d-609cd5b03ce9","block_type":"box","text":"of the company and the market environment.","page_number":202,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"ff716df9-eb9a-4127-93d5-b8e823d8e054","block_type":"box","text":"Dividends","page_number":202,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"e160c43a-b8e1-4eb5-9b01-e9f97eb1cabc","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":202,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"d7255090-2e0c-4b83-973a-ffff0b2c6e58","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":202,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"82d1e987-d301-41dc-9db8-3b6f9179e5c7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ccb69629-f5c7-4f19-b650-34b97969eb74","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c4e64f72-522b-4842-871e-3308168a84e3","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1d8a4f6-cb75-4ebd-bddf-8de2d3d1d360","block_type":"box","text":"Differentiated voting rights","page_number":203,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"1ae38064-40f7-43a5-adcf-1ae364b64958","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":203,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"320082bf-ed61-474f-ba66-22c72f644c3b","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":203,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"1cbb6bca-6e35-4912-a430-d18955558f7b","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":203,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"eacd0bc5-a225-4240-bc03-0df935372db3","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":203,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"d951eaee-2fb9-4a78-9339-cb8d430a7480","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":203,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"e9f8a0d4-c21b-459f-8803-b57b45ec8baf","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":203,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"4748fa7c-b439-4ee7-93e4-54bf40f2adfb","block_type":"box","text":"analyses of proposals.","page_number":203,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"ef857eb1-ed8c-463d-990f-31ce89b9ebbd","block_type":"box","text":"Mergers and acquisitions","page_number":203,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"2fe5d04f-0fdc-4368-8d32-23c779821ff0","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":203,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"daef7cdf-3d47-456b-9fd9-8eff1b93d3e8","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":203,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"729d2589-c27b-4caf-832e-d1d34dee06b8","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":203,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"cc6316f4-0b91-40a2-85a2-0a1b40b8d9f4","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":203,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"85628647-dd9a-4b6b-917e-c9762c1053c5","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":203,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"89c44311-6251-4dc5-9339-37ec6bfcee03","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":203,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"9acf72ef-c553-4e41-b31c-4c810cfd263b","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":203,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"aac4630f-d27e-4f03-bf64-884106d0c670","block_type":"box","text":"Anti-takeover defenses","page_number":203,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"0fc137ad-4d1b-4195-923b-cb43ae62c186","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":203,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"d3c55fe1-545d-4cb2-ab0e-5dffb5137496","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":203,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"7cb40e4f-8505-4096-9c40-c69fe8761b1b","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":203,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"48af7e6d-ee4e-4513-b3f6-df3925125585","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":203,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"c203468b-68b4-4751-9c78-6218554c46dc","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":203,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"f626dcfb-c257-47d2-b82d-85978d638668","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":203,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"b6995afa-942a-48e0-9a05-21fadcdf91ea","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":203,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"abdf6142-1b1b-4a7c-8c84-3013041e4aed","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":203,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"9d7ca4c9-e067-4e4f-96f1-46e5cbf072ea","block_type":"box","text":"Shareholder activism","page_number":203,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"a2b89b2b-c33f-4bbb-9c70-a69d8744ce88","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":203,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"bbd67634-4011-4b7b-afd9-e79bff819135","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":203,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"ad253c9e-e5d3-4296-b639-05b866c4ef89","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":203,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"5fdc7aed-a9eb-444e-9850-5ddc81a8d3a2","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":203,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"536b4b4e-3372-4fe4-87be-23ea60187610","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":203,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"b27d8dce-5b46-4f73-a258-bc26d5a01cac","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":203,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"38259230-7369-487b-931b-71b3f1c8587d","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":203,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"35023ff6-0d53-4ea7-95f4-12b7578a3474","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":203,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"f0229bbc-25fb-4561-94de-0902e6334119","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":203,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"19030743-fc07-4925-8990-003d4ffcea48","block_type":"box","text":"protecting shareholders’ interests.","page_number":203,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"3329a35b-019c-4d1b-9597-9f0d17d17859","block_type":"box","text":"Significant shareholders and related party transactions","page_number":203,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"64c0f2cc-f25c-42d2-9a4d-973c76b0dc69","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":203,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"c108cc4c-dba7-4a8a-a44c-13c2132f4e0d","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":203,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"0a164692-7851-4202-b623-bb1469d686bc","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":203,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"8445baa1-3a9c-49b6-b268-618530e39280","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":203,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"90df8560-8aa4-4919-8c0a-f39d32b72f4b","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":203,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"d308d9e1-4cf9-4d27-a65f-fda36327cd96","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":203,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"bd142e67-6460-4b70-b68b-5ec6ccf40b88","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":203,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"0784f389-559d-4183-8296-e987b08b3be9","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":203,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"8a080559-bf5c-4991-b2a1-ee5f143b04ea","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":203,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"341635d5-e283-4bfb-99c4-86ebd6ccf533","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":203,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"31f754ba-1680-4ed6-b53e-655b8ef63a89","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":203,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"58595e21-75bf-40a1-b04e-cef0aab9babe","block_type":"box","text":"audit.","page_number":203,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"aefb35ff-c873-4f9d-b1fa-5cb111b72940","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":203,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"e1a8314f-1de4-4d94-a6ad-3c460d300dcf","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":203,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"00f65867-5dbe-4c6f-a44e-20126c62bbc4","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":203,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"fa4c6a21-3d3f-4011-a821-90dc85163e30","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c98a44ad-8fe1-4d19-b88b-eefd5b33a43b","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8f7b68e9-4941-4bc2-8bfb-4e8e59f566c2","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a60f8494-91e7-47c0-9ec3-86643b5a683b","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":204,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"a73fe2a5-6a78-46d2-90da-2033436072a7","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":204,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"f63435ef-2287-4a62-98f6-359a7420a00d","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":204,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"ea95717f-cd1c-4e38-aa14-7bc49f34eb9d","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":204,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"bb094692-ac40-4cb5-b9d4-e79309c8876d","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":204,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"f50e0246-fc19-462e-895f-3d09da0d4064","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":204,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"a54a18b4-2128-4d78-83c4-e0045192e783","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":204,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"d7aa1afc-c254-43db-aae0-916fe64fb907","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":204,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"20c66c58-cc3e-4539-aced-c67e9f58191c","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":204,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"1c0b606a-cc1b-471b-9bb8-fe8ef69b6ff3","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":204,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"cf2d2272-836f-4f90-9716-8e7c54c2c133","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":204,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"3ec87b2a-e0db-4fc7-84d6-198b2357f756","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":204,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"91d2307d-6d66-4e05-9b53-c217ef61a0e9","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":204,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"511b967c-6682-4f55-ba06-32fd95a41136","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":204,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"ce03bb75-1b8c-4eb9-9151-a1b2bf3347bb","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":204,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"c82b768d-6329-4318-98db-69dadd2f5389","block_type":"box","text":"9","page_number":204,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"3ed6c672-7515-4ca3-8f1c-896b519768df","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":204,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"71782173-56db-4c6f-b27c-00add05ee332","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":204,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"935ca979-2c23-46a8-8620-57ec91e102f9","block_type":"box","text":"standards specified by policy makers.","page_number":204,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"5bcb31d9-1542-4924-9377-5aed6a4a1545","block_type":"box","text":"10","page_number":204,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"c3c5770c-c452-4d1d-81a0-87a19fa5e395","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":204,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"73a53a79-4dc2-4c8d-8e0c-3980f2f35f29","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":204,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"4bd909bf-f437-4118-888c-17a23f384704","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":204,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"7eecd2c6-7fcb-4448-90af-9e4f53f25946","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":204,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"2fc57728-fc09-4541-b62c-328e294d7463","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":204,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"6969dd57-82db-4865-82d3-1b17d3691e71","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":204,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"c5cbc1b7-f669-4c78-b312-9f86d45bc659","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":204,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"8d62fa04-e812-4d93-bce6-9f743059c037","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":204,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"a778edb5-a0a7-4792-9a89-ba5c7073bdce","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":204,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"9cc974f5-5b2a-4810-83b3-0cee97500bec","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":204,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"ddf33309-94ef-402b-ab19-4e1dae22fa5c","block_type":"box","text":"remained independent.","page_number":204,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"7fb76ec2-f00a-4dad-a391-a9be8aadfc05","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":204,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"1f6b6991-f073-4ccb-9867-02221d135e63","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":204,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"bfc1f2c6-d22a-43a8-ac08-5efb378dcbca","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":204,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"54dd4621-7bf3-4f13-b2c3-1d03a1a16a86","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":204,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"aab4bbe7-f873-448b-bad3-2f9ba1d0a69d","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":204,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"a4200eea-cea4-4749-b2f6-ad7ab91676a1","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":204,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"281692af-956b-47b6-bc21-485b6417158a","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":204,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"2f4109f4-1d3e-40fe-9d27-df4584e41f06","block_type":"box","text":"General shareholder meetings","page_number":204,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"ffe75b9e-6823-4210-b2ed-9614c7b3b20f","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":204,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"7f7a30d6-3ebe-4331-a0e9-1f901adf6a99","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":204,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"9428df72-c8c8-4478-88eb-7660580b99a8","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":204,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"e5a25767-4bca-4ed0-b897-4852956199ac","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":204,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"3ef1e5c0-16df-4bb5-876b-3b246a8f4947","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":204,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"a43c6131-235b-4683-ade7-09128e564da3","block_type":"box","text":"an in-person meeting.","page_number":204,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"99aadea0-cfff-459d-bb3b-f114b37a3510","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":204,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"aaae1bbc-e9bc-4e4b-b41a-6812582ad35a","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":204,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"f1b1058d-ee72-4654-b628-b6de6a6397a1","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":204,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d9eebe2d-a957-4e6d-a43c-e9b79e1d7716","block_type":"box","text":"par ticipation.","page_number":204,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"a4e9a5f4-40eb-4abb-bc56-41720cab850d","block_type":"box","text":"9","page_number":204,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"3ec01f5e-90b9-4171-9f7b-3ec6f4d4c777","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":204,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"042507ad-af68-4045-b6b5-8218572707da","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":204,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"65ef0901-6152-454e-b60e-a5f63140af09","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":204,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"8a943c49-2c23-4d81-81f2-2e0d7e6089db","block_type":"box","text":"Disclosures.”","page_number":204,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"6e3f35b6-9129-4f19-9145-9f8e9cc96fbf","block_type":"box","text":"10","page_number":204,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"c52b30ba-2510-490f-bf17-2d4443da9cc1","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":204,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"ff34ed27-056e-4470-8538-1d5f8f0460d2","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":204,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"dfd0167e-9802-487b-907e-e8738cd87fac","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":204,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"bdee1a34-4f0b-409b-9d4a-98d22e5ff8a3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fe93136b-b34b-4bb5-bc9e-ec4f0f5c3593","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"640bf86d-15e5-4045-b998-1b53500320ad","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03f06309-259b-456a-bde3-ce1bb52674fa","block_type":"box","text":"Bylaw amendments","page_number":205,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"2f369d03-6376-4da1-b98f-569c481c7cdc","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":205,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"273743d7-9624-498c-ab0d-97e696b1b41a","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":205,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"1f1e2dfd-7f7e-49b8-88bf-ca469e7e9046","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":205,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"d71247ad-0e12-4b6c-97dd-7280b9861cc9","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":205,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"d9b2c6a1-b3c8-4f0f-9b11-e7d3bbe37773","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":205,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"757dfd29-340b-42ff-bc5e-328acd4c2944","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"a923ec8b-b088-41cd-8d11-abcc1236b53d","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":205,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"59a4e765-5267-4e40-9fad-663e149225ec","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":205,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"cbacd732-7144-46af-9f63-c0533bb035d6","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"b610696d-8950-485f-b482-5c348238452c","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":205,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"07090b95-9cf0-492c-98b6-0ce2753a21a5","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":205,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"3a3282ae-6846-47c6-b8db-807dd91dbfed","block_type":"box","text":"nomination process.","page_number":205,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"00bfafb7-1784-44b8-99bb-9ea649e41ee8","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":205,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"e95275d0-58b3-44d2-8fc5-da44fb6d56d1","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":205,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"19118d10-df7c-4cd7-83da-3dfe98406f74","block_type":"box","text":"Change of domicile","page_number":205,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"1a82f9ab-f0a0-4acd-b367-21c543788e07","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":205,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"44ec8b77-846f-4271-9768-465df18c7133","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":205,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"be9cd1e0-4408-477c-a06a-dbfa5161d5a3","block_type":"box","text":"immaterial.","page_number":205,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"89ca4159-fd4a-43ca-be2f-e975f2307526","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":205,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"4fd1aba2-4b1b-4598-81d6-f93fe1f3e8f0","block_type":"box","text":"with our clients’ financial interests.","page_number":205,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"be8e6372-41ee-465f-a159-a7328e3aee14","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":205,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"c6a66a93-ceed-4a1b-8377-7e7c4846c853","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":205,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"d8ec1ed1-e6ba-40b1-aff4-01c78dc09891","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":205,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"102f59cc-4ad5-42ad-98d3-c227d352946e","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":205,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"2365a1eb-af60-439b-8d9b-f65bcf70c433","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":205,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"18705b67-11d2-4ee7-9dbb-6e0b87b18ac3","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":205,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"d1a14fbc-6918-4661-9d38-86fc12926b1a","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":205,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"684c792d-73f0-46f1-b963-da70628fdb03","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":205,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"c3a77073-ba3a-47a6-a847-ae2c40179031","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":205,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"b9f18a0b-8163-4f03-9dfa-b23c5a3b7fd5","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":205,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"139b6c2f-2461-4518-ba36-3ecf8c308f73","block_type":"box","text":"relevant to a company’s business.","page_number":205,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"a7286575-9c58-435e-b0cf-c5481872ee06","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":205,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"66438124-654f-4741-955c-f560672787e8","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":205,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"e738ee21-6030-44a4-baf5-aa47a03d48a2","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":205,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"bbf06d9a-0e5f-45c3-8f81-023759019fdf","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":205,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"e0ef8f01-4a1f-48e7-91a1-c1dbd4ee3ace","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":205,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"91c17706-0123-4b05-9884-e8ccca131057","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":205,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"0e4dff49-7de7-492b-b518-a309e79ee298","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":205,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"b43a33e7-e75e-4249-823f-cf5cdf609163","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":205,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"9a7aea84-97d2-4263-a01a-a57d9e3a28a5","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":205,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"f98340d8-60f1-41cf-a898-fc7e4d9f07cc","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":205,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"93071af4-7829-486b-b4be-92fdae24597f","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":205,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"dca4d5ad-9a50-48ef-a822-6a65945a4f38","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":205,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"7a7219ad-dc38-4f34-847f-986ec50b8d16","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":205,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"81ba664e-b0af-46d8-863a-cc7b955d4b01","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":205,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"221c48ea-0c33-417c-8067-a5d7d5cf24ad","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":205,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"0a3cacf1-705a-464b-909b-eecc330c25f2","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":205,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"ae043fed-9704-4983-814b-4700397d336a","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":205,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"d6334615-62a7-4f37-8cda-6bada122be03","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":205,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"00084e91-9920-4ffd-bdeb-124ec2f62959","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":205,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"5d5a8871-d208-44ec-956d-1598a6089856","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":205,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"680b5f7d-9c63-4b63-8a00-f728e9d4bf58","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8ab5d441-5407-404d-87c4-e0ac0fc9fae6","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7c6916d8-3509-40ac-9090-346bf9836811","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e959a2a-4716-482f-ac51-c309638f4f1a","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":206,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"31233d73-f191-4a1e-bef5-3091846c3042","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":206,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"3ba3cd89-e497-44c0-8167-8483cbb4a8a9","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":206,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"bb92f165-08da-4d93-9cfe-8776f6afb3d9","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":206,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"2cb4d108-8dcc-41bd-beef-e26dd113df17","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":206,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"dbba0b2e-22c1-47b4-bff8-a9856e21c056","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":206,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"7caca0a9-6c13-4451-9b7c-77d60432e55f","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":206,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"325a9fa2-12de-48df-846c-a0b8e9eee6ac","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":206,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"c05eb034-38bf-4472-a54b-9318cc260750","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"58d2012b-dc45-4832-a0c1-b7a0800f578c","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"dfd9288e-5c27-4b07-8a8b-189f969cc76c","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e78fc81c-96b7-4de0-9e08-d3a1f00a0ca6","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":207,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"53d895b6-7ce7-4470-a4e0-e5b5c6c21880","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":207,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"49c01657-ef27-476c-8305-320642b86e17","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":207,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"87a27814-b2e5-4365-be80-e2ec793b7cf7","block_type":"box","text":"11","page_number":207,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"44c947a9-3efb-4a99-bfb9-7f26d8e69cb4","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":207,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"231a967a-6994-4b61-930f-d6354fdad971","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":207,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"670f8694-3b03-4f8e-bef4-6848851d4947","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":207,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"de827ae1-2c29-4ba4-b05c-b2a6ba3ac17b","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":207,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"711ddd39-5d3f-47e4-8ac2-58df8fc9eba6","block_type":"box","text":"regulatory requirements.","page_number":207,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"fbbf3a13-5b2c-46e4-b45d-cb8827a8409b","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":207,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"4b799b75-bb89-4f7b-9397-22166b573a58","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":207,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"60a1b133-923a-4258-8d66-514d4eea90e2","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":207,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"d9553187-9364-453a-a39b-dea61dfb7e7e","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":207,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"1e0d580b-9bf4-4dc2-907a-886f963a1d6a","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":207,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"60b9c905-5fbf-489e-928f-7240711ad074","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":207,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"873048f0-cd65-49c1-9b56-eaa37da902c1","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":207,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"13f0d5db-e6f9-431f-bb8c-614fa54b1728","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":207,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"7b5327c7-475a-41f3-ae9c-3b37d5cc948a","block_type":"box","text":"returns.","page_number":207,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"05edbb75-fbe9-4520-8eb1-b6034060bced","block_type":"box","text":"KEY STAKEHOLDERS","page_number":207,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"0b903e93-311a-4d64-8408-7ae394141307","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":207,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"6f47a712-ac58-47b0-a9d7-36577cdc57d1","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":207,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"5794643d-317c-44d4-b008-fae7255b8fff","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":207,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"159f004f-7eec-4bf2-8db4-9d9d6d4b7788","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":207,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"d756f727-fde2-4e6f-8a15-a6a474ba9204","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":207,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"84f5695c-8a1d-4fec-925f-99dd8885c230","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":207,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"f00a914d-9e1c-4c3d-9a80-4532caf4050d","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":207,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"3d7d9fb9-784f-45c1-93a9-11cc8eb20e43","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":207,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"07f0e046-66c9-4e49-a4d5-6817d14ad46e","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":207,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"608c5689-00d3-4f78-89cb-eb9220068c36","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":207,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"cf13c381-0c3c-48a1-8b34-066464223497","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":207,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"a867d505-7752-4155-8b74-286ff8da03ee","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":207,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"e20ec041-e12c-418b-8540-5a53b22f5e1a","block_type":"box","text":"i.e.","page_number":207,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"e0c6f6ad-cfee-4621-bd49-fccca3be22d0","block_type":"box","text":", one in which global","page_number":207,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"58fdc34c-9464-4100-8b86-12ab62827db4","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":207,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"8dec2990-90ab-4440-b660-a7df577867bc","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":207,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"f073231a-c6e1-4167-9b84-0412ff408e97","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":207,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"a376b24f-cf55-4a0e-9774-2f2caf4a18e7","block_type":"box","text":"client.","page_number":207,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"11f2dadd-e149-47b8-827e-f95b7ecfd2c9","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":207,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"3bb72470-957c-4352-b851-d2d4a3a08406","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":207,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"844743cb-2ea0-426a-87dc-3cd1f8324c28","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":207,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"a459c308-4289-4783-b701-f408b81cc86c","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":207,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"3c52b305-8f55-4b04-a8b6-2a49e9f75861","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":207,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"f232c77b-44f3-4955-9705-8e57c905e56e","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":207,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"3d415c19-b266-4fd3-a88c-f95fa85c62b0","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":207,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"3f2aedbd-26ae-4197-9c10-9570ebf32c03","block_type":"box","text":"1 and 2 emissions.","page_number":207,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"e27d7eef-0660-4bf1-8a58-5dbf58aa8a52","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":207,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"77598e44-571a-49a8-9e2d-e30c92187d01","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":207,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"7db1fef9-64dc-4371-a831-3b4f38a3b024","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":207,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"980b695c-5718-4870-acca-504d7e6422d8","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":207,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"0501a7d0-490d-4aeb-8f49-6dd8496d8f4e","block_type":"box","text":"11","page_number":207,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"9e7ba910-8e7b-44c4-b029-3d134b511e3a","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":207,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"32d48d9b-fac6-4d54-b728-a64c67e65b78","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":207,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7f7d3ccb-c3fc-4c3b-9559-70f107a452e1","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":207,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"d2893442-c02a-4f0a-95b5-d547c239f723","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":207,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"28349989-0aee-4c4a-8f02-6d772e253e30","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":207,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"e3a755b5-231d-4215-8c38-4b728193153c","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":207,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"5afca692-dde8-4fd3-b7a2-9b6661d90bee","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":207,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"909681bf-00ba-417f-8edc-d7fb5c0fbff9","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":207,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"56f9dbea-ddf5-4e19-958d-bb13bb4dd57d","block_type":"box","text":"sound governance framework.","page_number":207,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"e1b6031c-fc83-4431-b941-fa22579dc448","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f85a780e-3f1b-46e7-8bb0-14b06aa61a4e","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"642ef18f-3d6c-47c5-b348-2faaadd46cbb","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"119dc114-0a0e-4dd1-b7af-4ab21010bb38","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":208,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"30dfdcf0-ca80-4d8e-b20f-5febc09fedc3","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":208,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"dcad946a-ee5f-4ac8-ac35-944df992eeb7","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":208,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"e8060f83-d3c7-45a9-ad6a-fad23c3972b6","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":208,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"be59eda1-3cf9-4c50-b09c-3e53a5cef741","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":208,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"7a761de5-8ca8-45a1-a06b-ab87f77f34dc","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":208,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"0dec9f6b-c825-46a7-b41e-f3390729ac48","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b97bdf55-6edc-4183-81c1-d21fb6e34b69","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d50d665a-8277-42f2-bd57-ead81076b851","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5cde19cf-65b3-4f29-ac65-052bdc849518","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":209,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"8fbb3225-c58e-4e69-801e-44cf7aa35b0e","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":209,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"fa6a9545-bfa8-4860-b1ab-86bb995468b0","block_type":"box","text":"Oversight","page_number":209,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"fb3addaa-b6ca-4cd9-9ccc-ed26a1144304","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":209,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"5f1e232b-5cb4-48f9-abf1-3c12bb965b0d","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":209,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"d8e71781-1970-4ca6-b2be-31148a47885d","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":209,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"545afc98-72f5-447b-b382-b978fa866c4b","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"c598cef8-5d56-4a93-acac-811f21441bb8","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":209,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"6c93a4af-2fb1-438a-a674-b87472336228","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":209,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"ac155072-058c-49c3-81fc-a9e75514d3ae","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":209,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"abe15085-aa82-4669-ab8d-f2db9041e353","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":209,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"16fbfa57-5607-4839-a198-e0bc35c35be3","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":209,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"92eba646-cc66-43b3-b106-d1ffa612c15d","block_type":"box","text":"relevant active equity investors.","page_number":209,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"44618b03-e34d-48a4-af87-cc778cb9fd49","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":209,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"eb051b20-4781-4a8e-92a3-0d3a4429fd4c","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":209,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"4ec22e0f-40a2-4a44-b6ea-edd7cc8ac999","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":209,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"132e0818-6793-4806-981e-385a3a604c18","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":209,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"d46ac2dd-9219-426d-a6d8-f997dc2a9676","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":209,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"673c73a4-9e63-4f6f-91f7-8859c5241988","block_type":"box","text":"third-par ty vote services providers” below).","page_number":209,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"49358310-8471-4882-a903-9f4af0b10422","block_type":"box","text":"Voting guidelines and vote execution","page_number":209,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"4785f3e7-2081-42af-80b8-1ccaecbed8ae","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":209,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"6a4bd251-19ce-41be-ae5b-4eefb83903d3","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":209,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"8f2c03f9-e666-4fef-9a12-909d55344bf9","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":209,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"f48d9604-a964-4572-8030-99e60334e665","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":209,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"aa6a43f7-dacd-4dbb-b5c7-ef38ff1cbe50","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":209,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"33874091-de01-4966-b0b1-da1565cf9f27","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":209,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"f343cb5f-7c15-450b-80bb-0cbd4a70021e","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":209,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"a10d713c-ab46-4e39-9244-0411ff1124f2","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":209,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"43832873-b764-41d2-86a8-da0101a6feab","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":209,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"15e9b539-6a5b-4ce7-87bb-cf838cbf9ef2","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":209,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"2e6df12d-4da7-4572-b43c-a188e714aa9f","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":209,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"37d77b39-5090-4f94-b72a-48c96773f1d6","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":209,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"9cb2574c-ae64-456e-bdfb-9019e8f21aa3","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":209,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"fe2c7f15-62bc-4957-83e5-4eb15918e0f2","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":209,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"eb898f1e-fe2c-4309-b8b4-23d1b277370c","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":209,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"dc3ae21a-b00b-4cbf-ac3b-4470be0673b7","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":209,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"ef396542-6715-4c60-b582-e414ba064200","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"7253c034-d584-4c5f-b9ac-5c41201cac63","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":209,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"a89a193a-554e-45cc-8bf9-a97d7c3d603e","block_type":"box","text":"well as the desirability of voting such proxies. 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We are not suppor tive of impediments to the","page_number":209,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"1600a522-1040-49cc-b710-886a828078d5","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":209,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"7a49e0f5-9836-4c8a-b355-85fe45510a78","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":210,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"5927f755-3f79-44ca-9eec-f5d738e47b60","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":210,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"ea0d0128-d690-4b51-96be-cd71d5fe6fb8","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":210,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"503d562c-d581-4c3c-8cae-e9dd5c789e26","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":210,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"c96738d0-fb1f-409c-bd64-09a58383b406","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":210,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"33bd44bb-d6ce-4999-ad9f-4ba0082dc834","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":210,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"e2d60148-4a8b-42b0-988c-43d6868cf84f","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":210,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"a1e9df37-8d94-48bd-ae7e-46b3b21e0fdc","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":210,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"441da827-e26e-4c58-ba72-666b51d940e5","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":210,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"ac80254f-955f-4c72-91f1-8fbc17ce2c0b","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":210,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"c9435429-8d2b-40e7-9fbe-f2bb2dfd85d0","block_type":"box","text":"vote services provider at any time prior to the vote deadline. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":213,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"ba25b093-cab2-440f-b69b-8e0edb354448","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":213,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"20ffcee1-9e97-419c-9b75-862cbfb91df2","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":213,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"d9e8e406-86ef-4eab-9f2c-a5094a0f49c3","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":213,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"c3cc6eae-bfd3-4e40-8277-beec00ab10ad","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":213,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"f356ece6-2904-47c5-a778-b56a3257b2bc","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":213,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"9b8ae04b-5030-4972-83f8-c56537db4038","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":213,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"a2b81b30-8103-412e-8249-7de0390e1bdb","block_type":"box","text":"Appendix A.","page_number":213,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"86d4798e-522e-4222-961e-ddca56c6042e","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":213,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"e3193ccd-45cb-488e-b016-ba5f0502d017","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":213,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"c7aad264-c256-4a3a-9d9d-1cad49bec4f4","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":213,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"520d52aa-280b-4e8e-826a-4327bfe3bf7b","block_type":"box","text":"Conflicts Management","page_number":213,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"d5ee8c50-8d52-47fa-a791-17a8a0d2217f","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":213,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"4c8dc8de-e934-4262-b8c4-4ead547e5862","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":213,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"d364c41b-941b-4556-a7bc-84c417694aae","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":213,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"4983dc1f-9902-4cac-9814-f04276260beb","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":213,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"57e96e1d-e7c8-4d3b-a76e-8ab17cb41454","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":213,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"5e815437-c8f5-407b-9d1e-41e57b857a3f","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":213,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"ea175706-b2e8-459e-ae5c-12808aaa9936","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":213,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"17f71496-8848-4aa1-a18a-04de03bf499a","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":213,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"e3d0ba1b-0171-4dc5-8564-10c5fa3d14c6","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":213,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"fec71391-264b-4910-b58c-46b8545570e2","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":213,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"fe9f980d-5b91-40fe-a76a-5527e963f68c","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":213,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"d06d0f8f-9b73-4eb9-a4f5-03556bb70c34","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":213,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"346936c5-960d-41ca-88e0-5cbf43cc3b90","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":213,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"514d123d-d23c-487d-bb5b-f1e6468f2e28","block_type":"box","text":"connection with proxy voting.","page_number":213,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"5559aba6-f0df-405a-b5c9-dcb0142d8f6a","block_type":"box","text":"Reports to the Board","page_number":213,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"209257a6-45e7-46b2-b31c-0c8a2bc53173","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":213,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"040feb8b-0d73-4b78-afe9-d574959ccc2c","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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BlackRock offers a","page_number":217,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"f0109ea3-6f4b-4e0c-8b7d-15f3479d4cbb","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":217,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"e86f75d5-13b3-4f81-93f9-4322a110d3de","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":217,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"06537fb1-9525-4391-8671-e35b072aceff","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship effor ts, reflecting the","page_number":217,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"4b574792-fbcc-4351-8bc1-591d75a42aab","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":217,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"ad61f2d0-3340-439f-b322-6ea63a702eb3","block_type":"box","text":"1. Engaging with the boards and management of companies","page_number":217,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"a8004504-52a2-4c0d-8cc6-1b9b9f04cbe2","block_type":"box","text":"in which clients are invested to deepen our","page_number":217,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"11531bf0-44f3-43c9-9739-249a4ac877bf","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":217,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"a1bc88a7-c26d-43e3-9810-68ac0a2cb8c4","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients.","page_number":217,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"301fb35d-47de-4b2a-8ba0-99491044055f","block_type":"box","text":"1","page_number":217,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"d9b4727f-cc3b-4385-b76f-f7178ae5c20b","block_type":"box","text":"2. Voting at shareholder meetings","page_number":217,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"821bb966-b5b7-40dd-b860-671baded1d89","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":217,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"90a56407-9e36-447f-8984-5f686f08c5ac","block_type":"box","text":"to vote on their behalf.","page_number":217,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"5b6574d2-f012-4326-8894-f902b3fd292d","block_type":"box","text":"3. 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Reporting on our activities to inform clients","page_number":217,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"02d8d1be-926d-4348-849d-1829ae329442","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":217,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"ba00b4ae-f245-4b1a-bfc0-eded7b386a61","block_type":"box","text":"publications on our website and direct client communications.","page_number":217,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"910410c5-1542-4d15-adee-5ab7f05be1a9","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":217,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"4c70ff99-84c1-47ee-bd65-8eff1f7c4ee3","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":217,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"bdd03e8f-5c3e-48d6-928a-5402b174082d","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":217,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"fc24d30d-fce7-4c4c-8eed-84cdff77b4c4","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":217,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"db8c0b07-6f28-429b-9bb2-3da728dc23e0","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":217,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"61b4b709-25d3-4865-882f-ac997e912623","block_type":"box","text":"2","page_number":217,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"1b43639e-b1d2-4057-9e98-a33f39478b98","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":217,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"27874c69-3c8f-4953-b3b3-ceb9b95680af","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":217,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"7fbfeb00-08b6-487d-82af-f9cac0eda20a","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":217,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"f6d799e7-5358-41c2-9a0b-b9575627a2c0","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":217,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"fc50596c-49e7-40ef-a4d9-12200b5c1968","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":217,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"b51b6255-9b7c-4ad1-a6fb-1d821bc5ecd1","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":217,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"fcbf7f5b-9d78-425e-8082-15114151a4d4","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":217,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"c10f6270-6817-4e0b-a767-00441f604d7a","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":217,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"8da3f1ee-cdc0-479a-8242-d673ea2648bb","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":217,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"dc978de0-35ae-4922-a6ce-f13975ea3ca1","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":217,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"e4d9b68c-c0aa-4f39-b3a6-a81bcf56811e","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":217,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"42c9297d-5eba-4fcd-9a48-d6e23fb4d53b","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":217,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"465a6715-1f5a-4212-ba06-d552f7e61e58","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":217,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"7be14f4e-afb4-413b-8b29-ea2bb3590eb2","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":217,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"bfa3d2bf-786c-44c7-8a06-80bf7452ef55","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":217,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"4c809faa-8996-4b64-9524-36b9592cc0e9","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":217,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"e21fae8d-dbb5-4ac7-ac21-fe0d3111114e","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":217,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"ac14af2b-2858-437e-bbbc-16656e3fdd59","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":217,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"370ac678-e1e6-4e58-921b-6269dd9fb894","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":217,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"f56bba75-7dd4-42f0-8abc-3c16adfe4eae","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":217,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"2c00ca20-a497-49da-ba6a-d867ed2d5d57","block_type":"box","text":"1","page_number":217,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"a6fe3fa9-001d-4761-892c-95de1cb7ddb8","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":217,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"aae8625c-49f0-4061-ba2a-57fc2c59bac8","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":217,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"c34aa231-836b-4723-aa85-4e89e6f89deb","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":217,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"105924cc-faec-4183-b965-65b3e340f0c0","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":217,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"6115df86-4caf-43a5-9511-036de74c7551","block_type":"box","text":"2","page_number":217,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"4ca276a7-3076-4855-96fc-5cfffc225a3e","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":217,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"66128ac9-5f0e-42d3-b8ca-cd9fc6318841","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":217,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"d6b23d71-8816-4b30-a145-8f40ccd83d89","block_type":"box","text":"material business risk or oppor tunity.","page_number":217,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"ce8cd2df-546f-4f8f-b7fc-a00baee108f9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b8f6bcf9-50f3-487e-b756-cf9f5074274f","block_type":"box","text":"Global Principles | 3","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0151091c-fb40-4255-9c3b-34a7941ba3e9","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6783396-b551-469e-ac4f-e96c78a8bf92","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":218,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"3c7051d8-51e5-4525-a2c7-9ffe649e8a6e","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":218,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"9fc20fbe-34f8-49de-9778-2298588c8cd4","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":218,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"64ac1b2e-5329-498a-8bee-5e8104f1be85","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":218,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"11cba6bb-c89d-4bcf-8648-40180c0ce246","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":218,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"319f535b-6c84-493b-b1d4-3a14beeee04c","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":218,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"a883f124-6e64-4ca6-a023-838f5bdfea63","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":218,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"2f25a134-1ee1-4c4e-8c00-f8bf25dcf133","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":218,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"e6c566fa-7b44-48d7-821a-6c84db28ebdf","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":218,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"056efbf4-6ae2-43c9-86a5-4456d98814b3","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":218,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"eff8789c-99dc-4159-8846-e1d30a184314","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":218,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"78d17c83-c745-40a5-849a-192c86fdb319","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":218,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"e3114667-642c-445e-86c2-68cb5dc6ad6d","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":218,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"99c37a7f-4508-4e04-8480-0329ad768338","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":218,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"2db88e59-fc9b-4589-b960-28de3181bfc5","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":218,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"d4e50584-b540-47c1-8e2c-a12ecf84bc4d","block_type":"box","text":"3","page_number":218,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"59a79ff7-8460-4ce0-ade1-5ea2f58eed61","block_type":"box","text":"For example, in","page_number":218,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"6964c7c7-79b3-466b-91dd-bac5330bd4f3","block_type":"box","text":"most markets, shareholders have the right to:","page_number":218,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"c81e3af8-957e-4e2f-99e3-fcdce6274b11","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"65a83466-3305-4789-852c-80ed33df8938","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":218,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"3ef889ed-9a26-48e5-b77f-6026eb4d445f","block_type":"box","text":"char ter or bylaws.","page_number":218,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"59ad9a89-4856-4edf-aec7-ec2adef64eed","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"27fda42d-982e-49c1-9f28-3fa9bfd07911","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":218,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"7531be7c-eff4-47e9-8fd3-1309a71ada9e","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":218,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"97c7082b-398e-4b5d-9fc3-bbcdfb55a2a8","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"d5390be4-9004-4f01-9940-86460baa67a1","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":218,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"fac85000-26dd-4461-bb2b-a6ace98f16d8","block_type":"box","text":"are material — to make informed decisions.","page_number":218,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"70babd79-085f-4057-b6a0-681b0eff3768","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":218,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"ebe10f54-882a-4232-872f-a81ce066f7e7","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":218,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"c13fbbe8-933c-4528-9a75-4688bfe651e7","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":218,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"4b9b7e71-2aba-4b77-a62e-234a02c1f4e7","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":218,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"319156c0-0ea8-40cf-9cda-6105975f70ca","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"53429e86-f3b6-4ecc-a1a8-ffc967d0be44","block_type":"box","text":"Boards and directors","page_number":218,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"65daa224-7eae-4c8b-bca5-839cbe2a00d0","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"7c1f274c-7532-43a0-91ec-01be0a4d9f6c","block_type":"box","text":"Auditors and audit-related issues","page_number":218,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"9f377c54-841e-415c-9149-9f4e7ebc09a2","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"a444f909-b593-4399-9c6c-509fee346119","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":218,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"8abaf7f6-1678-47a6-bb69-e8bf6f7e3e7c","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"b96b1280-1de6-400b-87d4-a0fdf05cde23","block_type":"box","text":"Executive compensation","page_number":218,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"47232aa1-ea22-47d0-a459-307f4070e370","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"7e5da701-ba02-4844-9b58-52784f441616","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":218,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"d38fb02d-ea30-4d9c-bbc1-d2e5aca16eca","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"dbe3e785-d2a6-4bd5-a6c6-1510664c1495","block_type":"box","text":"Shareholder proposals","page_number":218,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"8f6e481f-af5b-443c-8c20-3bf4955ead3e","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":218,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"8351c654-f2c9-4ddf-a4fe-5b5b9c1dc0d5","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":218,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"ac443134-d092-40cc-8218-e9a63077846c","block_type":"box","text":"which companies operate.","page_number":218,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"044e49c8-5e58-45f0-a1ce-1114173fe472","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":218,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"7ab35109-49fb-491f-977a-ff16c68d272c","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":218,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"5471c4f8-a870-4b57-bed8-157904bb3b76","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":218,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"30b042ab-812e-4fc5-b01e-3f6f57811fd3","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":218,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"537a6553-2354-460c-9a30-943abf215897","block_type":"box","text":"4","page_number":218,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"6fb9a0cd-f9f9-416d-8323-51266865b268","block_type":"box","text":"3","page_number":218,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"dbf644a5-d432-40c3-94c4-5a1715bdf9c0","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":218,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"19f3f805-9e9f-4399-aba3-53256e6b2e75","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":218,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"cd278efc-d972-4106-b810-e7a409d83ed6","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":218,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"539849aa-dd09-472e-879f-fc280a60ca39","block_type":"box","text":"4","page_number":218,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"87c5adde-0f56-4925-ad6b-c0a60743960a","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":218,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"95da2b02-00f2-44fb-b461-546fe1ccb261","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":218,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"b398d1ca-721c-4fdd-8f27-1aef92b59a4c","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":218,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"bc389a84-5be7-4eb0-acaa-9a2564da3af0","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":218,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"e10758a8-accc-4349-a0ff-4b6f034c1c30","block_type":"box","text":"guidelines.","page_number":218,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"8e86c741-a05a-440b-9f5b-92e05a744143","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"33bcf9db-d2a2-4a53-b02e-f4ca3b0afc1c","block_type":"box","text":"Global Principles | 4","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b337dc52-d630-40aa-926f-c27cad38d62b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4e2bb46-89c7-42b8-b258-139767b57af1","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":219,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"265dc4ac-1256-4249-a75d-f84eedaa851e","block_type":"box","text":"Oversight role of the board","page_number":219,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"40765d20-dcac-4c54-b052-826ab691fa16","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":219,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"7b67688d-92ee-488e-ad74-8a59a159e28d","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":219,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"9444f201-8b27-484d-856f-e12c7a5586e0","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":219,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"4b9eb879-a9e8-4610-a541-7f9ed5a504ce","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":219,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"ae1b1e17-eac9-468d-b208-64effa2ec0fa","block_type":"box","text":"long-term financial per formance.","page_number":219,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"2e1dc009-db69-4ba5-bddb-d67d0b2b8cb1","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":219,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"ae0e2795-5839-4739-b3ac-c69fd495987e","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":219,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"e200a04b-5729-48ef-aa5c-2487bfdae075","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":219,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"deb75537-7921-45b9-8cb7-485d3fe2ef5c","block_type":"box","text":"the business environment in which a company is operating.","page_number":219,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"ad2473fe-b831-4a1f-92c6-406bca289719","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":219,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"4b97b44d-95d8-4612-86c5-c934e858d91b","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":219,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"ee661de6-fe84-4253-b5fd-99c32009a643","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":219,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"7a2c4b2d-d45b-479d-914b-514908a45a09","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":219,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"004dbf8d-864d-4ed0-bd8f-fc6064a9b99e","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":219,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"af3747c7-1097-4657-8ccd-3a624bd71d9d","block_type":"box","text":"mitigating such risks.","page_number":219,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"67004bb3-6380-428e-a095-891cd83a34a2","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":219,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"c3b184ba-aea6-4480-9f2d-7932dc3910b8","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":219,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"c33823b4-2a80-4890-af63-30b3a3a89ac7","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":219,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"f3f32265-67dc-4c35-be89-1396f7bcf53b","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":219,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"a2fe31c5-71fe-4986-93a6-f2b62522b3be","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":219,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"2f3d68d9-661a-4b15-90ee-5ec37f7345ef","block_type":"box","text":"strategy.","page_number":219,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"4ecb059b-0bec-4b1c-9efb-9b8deab4ff3d","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":219,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"dfe93500-5a6e-49db-93dc-fd7a987c86f3","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":219,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"782e3aac-5c92-4a37-9c56-5e26a10cc78d","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":219,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"7dbbb649-c8b6-4eb0-be4c-acb382b7b572","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":219,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"ac1fee3f-abf1-46df-b37b-8a48c021a8ff","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":219,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"0466c812-b2ea-4b22-a755-6177dceb8a9a","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":219,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"60333fb3-6f77-4a1b-9199-d8ff446ab990","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":219,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"887b53a4-b1f2-40cf-ac15-845e55c3ffe7","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":219,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"f954729a-630f-48c8-8c8e-d3acd2447751","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":219,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"15294643-1540-453c-b0ba-5f46b483dfd1","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":219,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"9043e9ae-bd5c-4678-b9c6-47b96cacb94a","block_type":"box","text":"Regular accountability through director elections","page_number":219,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"ec5ca828-26bc-4872-b436-dbc44d47c547","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":219,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"36783aa8-dbf9-4191-a364-e07f6c9b1e34","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":219,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"b22d1e39-7f16-4202-9d16-dfe45e09ba63","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":219,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"db92ad3a-eab8-4b34-bf1e-607288049ffa","block_type":"box","text":"5","page_number":219,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"78b34c3a-14e1-45ad-9841-dccb8dd5b21d","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":219,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"53b79d49-b2a1-476a-8649-1ba2db9fdffc","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":219,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"bb2246e1-a896-48ae-bd79-4a20cb97d2f2","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":219,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"0a7b2d24-aed2-4399-b8bd-78112c083d67","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":219,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"162cc82e-f421-46c2-887a-dd1d6c5fdde1","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":219,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"a04be67b-d025-4f8d-9048-2b7d37c902ba","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":219,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"7dbd4480-ffec-4c51-b689-7f022a9228f2","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":219,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"9dbc92dc-6a66-4b02-9039-983d09963f19","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":219,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"b4ce55d1-118b-440b-953b-5e7064969e4e","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"94bb56cb-c475-4e83-8f82-dcc5a9b95ec0","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":219,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"23670464-1dfe-4458-a1e2-12e3cabb8e58","block_type":"box","text":"market regulation or voluntary best practice.","page_number":219,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"d0d871b1-9455-41bb-9719-1e7d036a9929","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"37e016e0-a5bd-4b2a-9520-42d865fbcad6","block_type":"box","text":"Global Principles | 5","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"827a2e41-e95f-4b90-bba3-70d3ebd70c18","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"807a62a6-500e-46f4-bf82-a973116880d0","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":220,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"beec9eff-a669-48e7-b1ae-88051e8c487f","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":220,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"8bd7226d-6ac3-41a1-83ba-a698fc62e873","block_type":"box","text":"recently.","page_number":220,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"9796d570-bfb9-4af5-a68d-590355d5dd9a","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":220,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"7351816d-cee3-4686-889f-d3f68ca56324","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":220,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"80b03f6b-209a-4e12-a5a2-d2f7c83e86d3","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":220,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"9a3d0c99-57ab-4c77-b0b3-4398475e4ab9","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":220,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"9950dea3-168b-402c-b083-9446bd88292f","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":220,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"68276c07-e3ea-4297-b27f-f3552f8f347e","block_type":"box","text":"Director independence","page_number":220,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"350626b3-f58e-42ea-8fb1-37308aa03c1a","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":220,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"46987c4d-2e3b-4754-a063-e250ede2eb87","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":220,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"777d7555-726c-4a25-8dc7-39f34c192b0d","block_type":"box","text":"6","page_number":220,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"4e99440c-f20b-4003-8a64-3eab96b87793","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":220,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"50b1312c-29eb-43c6-9f2e-efe15fe895af","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":220,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"44063831-c08d-4347-ae73-532dcbf02a1e","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":220,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"8a0b0cf7-ec21-4c33-b5fa-812577ad3f90","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":220,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"046a6591-2e00-483a-b622-bcf404cfb1a5","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":220,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"edb60fc8-3790-4e21-9acb-1000365d8243","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"c201d8a3-c96e-4fde-b13e-b648b3c4837b","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":220,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"64c24e69-3baa-4121-aecb-9ee2a3c7d9f3","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"42daaaab-024b-4664-95a1-f571a2b2bbc6","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":220,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"c5a19b9a-8fcf-4fd6-8a16-9aab5ad77106","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"301fae2a-ce24-4038-b4c0-63c48561269e","block_type":"box","text":"Interlocking directorates","page_number":220,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"f0af6276-0405-4f62-830e-55b5e3b000ae","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"5f625391-1e19-4a07-a453-80e4dd1268e0","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":220,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"1017209c-f3c5-46b7-ac1d-493fde44646b","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":220,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"a5119ba5-77b6-4326-bcba-02a58b0cc5a6","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":220,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"4ac9fcc4-a8bb-4e4d-be55-d02a2a752f89","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":220,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"e852b149-df0d-45e4-8d1c-56ae96d09ba9","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":220,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"8e041b69-de3e-439c-ae7b-097037def102","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":220,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"69226060-be5a-46c1-9b9e-e2b915a21914","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":220,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"766cc2ec-1ce2-4004-bb17-5aaf14396bae","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":220,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"e7023190-48c6-4c95-bd40-5b24b2e9d2f9","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":220,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"d57fcd12-98f2-47cf-a2a8-a81387d86e43","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":220,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"69d57926-c905-4897-b1aa-cdd086e336bb","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":220,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"48645b06-5624-4488-89a4-2a277799feef","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":220,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"f1549fdb-28eb-4f4c-a087-2fba7de27e54","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":220,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"349c4a5f-c69d-49f7-af24-2193038d20dc","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":220,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"d5933581-cd08-4953-a4a4-1d8b478539bc","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":220,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"bf3207ee-3882-4bc4-986b-518d86fa0b1e","block_type":"box","text":"Sufficient capacity","page_number":220,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"64d65d41-c3ce-4e8d-b4a1-616fe18661bf","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":220,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"781bf463-80bb-4aa1-9423-f7b37e165c0c","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":220,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"9776a6f7-6d0f-45bd-b6c3-726801afe535","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":220,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"0018e336-07bf-4875-8a53-e899365d9d7e","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":220,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"be291c41-f5ea-48a0-9548-719566eb39b7","block_type":"box","text":"Board composition","page_number":220,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"b7db004b-45ae-4104-b82d-779e96b9e043","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":220,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"4a792e73-b56f-43b7-8c6c-5f97bc94ce74","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":220,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"d85357d9-3050-4397-957d-df86a10e63b5","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":220,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"27d12dac-80fe-4918-9690-245911dadaf8","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":220,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"57e5edf7-deb8-4e08-b500-e35bbb4aa1d5","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":220,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"2fbd0b28-ac1c-4aeb-b750-98b6ec1ae096","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":220,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"74d54ce2-786e-4451-b257-750ed6985be7","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":220,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"5837c3e9-3d39-4446-8bf8-c053b71293b0","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"ca07c7bf-356f-41e5-81c3-c84db0b80ea4","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":220,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"f08a5e67-95c8-400e-97b6-b964d092cb81","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":220,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"67b94de1-4a66-4c29-9232-28801acecd92","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b2a140aa-ec0d-41bb-8fd6-772c808730bd","block_type":"box","text":"Global Principles | 6","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8408659b-2d48-4bf9-9734-065608479445","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a0b61bb-0ef6-4dad-b742-b0bf2aba6daf","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":221,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"cae6b1aa-5642-4bb6-bcde-8fed9666ea42","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":221,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"20c5d697-0db9-4c7c-938b-80863cb265ae","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":221,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"0320f69c-7173-497b-a3fd-62bc109e17f1","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":221,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"e861b394-6a48-4294-a33d-5d85602ded9f","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":221,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"34d52040-66ac-47e2-a1c3-294952d733d7","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":221,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"ec9d1b0a-e16d-49c3-af8f-4762f288be7e","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":221,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"36d988d1-0d57-4e76-8e25-0ce3b11eff4d","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":221,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"5c445f87-eadb-4ee9-8a27-45293a0f50cc","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":221,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"7bcca303-6460-47b3-bf79-cf65ebfd82ea","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":221,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"c10d1d55-fa1b-4c57-8002-b195d68c06a1","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":221,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"8fa3624e-5dc9-410b-95ab-8cc7a48e8054","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":221,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"7f6317c5-3723-40e6-8a5d-77e880e8421c","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":221,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"a1282470-68fa-4977-817f-e5f1bd8feed1","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":221,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"62e39ce2-a3a5-4f32-858b-7f0978ec3433","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":221,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"e71278cd-e1a3-4104-a352-7b11ea9c21e1","block_type":"box","text":"systems.","page_number":221,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"7286c9b5-6f2d-4e2a-bab2-64877e49ffc0","block_type":"box","text":"7","page_number":221,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"9d3adea8-ea47-4789-8ede-baa029153e65","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":221,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"dc05d958-1553-49ed-bae9-6c8cc54bae56","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":221,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"ea75329e-79a9-4fa3-93dd-a1f0cd863b25","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":221,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"5c75cdd8-874f-4a2a-9a32-0144a7bbfa1b","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":221,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"55ee4a52-d255-462b-8eeb-17664ace1fe6","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":221,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"fda99992-6145-43cb-bc57-64b4e7e50b42","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":221,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"4b8a6c6e-82d7-4372-9404-b498edcdf414","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":221,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"f8d54a0c-02de-4268-bcb8-f7d9074cb94a","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":221,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"af6a77ce-1de5-460d-9c88-40966b6dd0dd","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":221,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"7e06eebb-823f-456c-bc69-cc1171f152f5","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":221,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"1ae91e7a-2ad3-4b6f-8bbc-df459411d911","block_type":"box","text":"or internal audit function.","page_number":221,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"0a32e2d6-b3d4-4b32-9e27-d28f78b52fc5","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":221,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"3f88e16a-0c6e-4008-9367-2fc9045c2714","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":221,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"5645439a-f04d-48a3-9c70-f08e9f4a20b8","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":221,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"7ee34a14-e951-48ee-8e8f-73c5a66f339b","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":221,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"27b44d34-cf78-4f84-a1c8-77d2fedd714e","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":221,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"ac490a97-85bd-48bf-9576-13675939a2d0","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":221,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"2af3a8cb-88a0-4c55-bb05-f8980c296cd0","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":221,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"6f87e1c0-7bf3-4891-8479-ad0f4b3ee323","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":221,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"5fea556f-887d-4d8c-a4b1-a53b41682f8e","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":221,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"6beeff10-3adc-4916-98c4-8d45a7384a03","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":221,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"5be3ab27-ebcd-4335-a8d0-620e752c4a84","block_type":"box","text":"risk.","page_number":221,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"7362890b-70cb-4bc8-8e54-0254be5b9a6d","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":221,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"301e70c2-73d0-481b-a723-51bb55a436d3","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":221,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"5e1fa452-1b26-402d-a873-9096c98b584c","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":221,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"4e9edee5-666a-4129-b093-e54044fce054","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":221,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"58ea0832-8f66-4237-bde5-07c773522ca1","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":221,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"23287b19-0da5-4b32-8f9d-6301df2e8227","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":221,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"59f3aaae-2305-4e52-b9df-52aaed569264","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":221,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"e0317698-d9d7-484a-b46c-58296a2600d8","block_type":"box","text":"7","page_number":221,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"79b01cb9-62eb-42ed-8a1f-146c244b4641","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":221,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"58d12a3c-495a-4608-9ee0-16f90efe74f4","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":221,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"21bb6196-4831-49f6-8497-be5f397f3e89","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":221,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"711f73a7-0cc9-493a-a01b-7d6f3e80d6a2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":221,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"30de1157-e031-44d1-bb60-8770aedd9e4e","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":221,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"5b6dbdbb-e52d-4d61-9789-d165df0a0ed7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ef68687e-f21e-4577-adb0-2c9d68e3f080","block_type":"box","text":"Global Principles | 7","page_number":221,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"01b70416-41d9-4ae2-985a-b231b6cfb197","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f735b417-5938-4a5b-af73-ba6be775d3c4","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":222,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"94e852c3-4654-470a-afae-d090b6a3c914","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":222,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"f3490dae-9f65-47a9-b3d0-9b3d0b937a34","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":222,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"10fdd819-adb6-4c5c-b664-700994286247","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":222,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"b4b39129-7c4c-4559-bf86-eabec302859a","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":222,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"5c4362ea-97c6-4c07-9e92-d394af23f112","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":222,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"83958876-e8c9-492a-b09a-b5ec97ec1319","block_type":"box","text":"minimizing costs to shareholders.","page_number":222,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"2e37393d-2da6-4a25-8c2b-3c878fd7f526","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":222,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"39e022c6-b5c1-4f2c-a946-617bbe62b716","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":222,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"208518af-87a2-47b4-a159-1002ab273a02","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":222,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"1f6ecaa8-b75f-4331-b3b6-34a85bfb7c93","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":222,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"661a5185-e9c2-40b4-973b-99baf5579555","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":222,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"afdc83bf-e5fe-48a0-abe5-2e55b3cf5527","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":222,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"187e7326-ad99-4166-a6db-4feadb1fdd2c","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":222,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"8b94dda8-4515-4da1-ae18-4a3e84fad4b0","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":222,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"8d25dc9f-138d-4140-b126-6e74655dcd51","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":222,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"b7227d69-5625-42fd-ab65-bbbb47052d44","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":222,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"c3d81eca-cb22-4f31-8647-e87956d7be62","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":222,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"3168c3c2-112f-464b-a6ba-026c35c8585d","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":222,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"65cf15f7-9996-456f-acad-dc2cd4d953df","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":222,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"d20b054a-3872-40b8-b095-389f5898db8d","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":222,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"fd5cef23-f5bc-4442-a595-00280cbc2291","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":222,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"9d85c44a-19a3-490c-9b64-8d271e7a1fa5","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":222,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"312daafd-a058-4d4e-a5a9-d4eaf961cea1","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":222,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"7885a3a8-aeb5-4542-800a-f39a2f259848","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":222,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"836699b9-d23e-4f29-828e-ec589bf4ca89","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":222,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"ce47120a-080b-440f-a52f-7427ab94b6a7","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":222,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"f36e1566-f869-49af-8611-eaa4e84bb858","block_type":"box","text":"ownership.","page_number":222,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"44217979-5ae2-4cd8-84b6-9b95a4df3c54","block_type":"box","text":"8","page_number":222,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"8f93f2f3-a67c-42d7-ad98-bd17dc6f0ca1","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":222,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"d4ebd458-1aba-4fa6-b108-c9eba7ff79ba","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":222,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"e401896a-0e1a-4883-8f2d-a6a2594fadda","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":222,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"7205eaaf-5172-4f5a-bd44-c7fca6519a07","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":222,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"b0704df1-b247-4387-b79a-f1b20631344b","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":222,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"db463f96-7970-4cec-8729-10428254805a","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":222,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"bf08cf3a-e1e7-4ba9-b79a-d6c417f2ab46","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":222,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"116b654c-c49c-41c5-b151-66fc5c0ee35c","block_type":"box","text":"results over a period of years.","page_number":222,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"722d9459-9599-4854-a5b5-d9bfd4243c07","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":222,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"015b96d3-f2c9-480a-9208-7da0cbb2440f","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":222,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"d6590719-81db-42e3-b404-1cd434624aac","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":222,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"248629e4-4fde-4a70-8588-174530ad10d1","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":222,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"c418e6ff-b5c8-4f3b-a728-10bc63360110","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":222,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"5f5de1a1-754f-4de0-9af3-45777124f53e","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":222,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"306bae79-3f25-45c5-8d51-e61186ab4255","block_type":"box","text":"executive compensation strategies.","page_number":222,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"3bd7df1f-3532-4eac-9c42-aae894692a20","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":222,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"526f2ad1-229d-4bc2-b330-8fe8ec47e17b","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":222,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"f6b2fe8c-f80b-4d07-a9d6-d8a962688e77","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":222,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"a02849ae-110e-46c9-9fd8-ff2320e86dea","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":222,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"f7c71fa9-7220-4251-b6d3-ef3925d76ee4","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":222,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"27616ea8-4872-4c07-88a2-8973335b6c0e","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":222,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"c6ac5391-8dea-47be-9976-833b05fbde8f","block_type":"box","text":"8","page_number":222,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"eae0496e-cf6b-4fa1-8fb9-8dd346319b10","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":222,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"391d5c7b-0aad-4f48-b923-d233c55b2e72","block_type":"box","text":"different markets.","page_number":222,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"6f875344-d61a-450f-9d68-205117009a0a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1640f068-48f0-486c-8001-031889176648","block_type":"box","text":"Global Principles | 8","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"283062f9-c594-428f-8458-e19d56359cc1","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc73c3a0-6e83-4051-b168-40885d2f4187","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":223,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"a7f0c9b7-8755-499f-9de0-1dc0b2bc803a","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":223,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"6f16805e-1b40-4035-9465-d68f0821678a","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":223,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"5b839ff8-ebf4-4211-86f7-fa0f4bc44cf6","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":223,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"73c47bcd-2203-4f7a-afd0-43918ffd6f53","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":223,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"c41c24e4-f809-423d-be1c-90f3a0ad7a14","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":223,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"006b1075-a74e-454c-83ea-a2b92ffe2ce7","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":223,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"bc9560c7-ee55-4ca8-8b47-ebe066d91c7d","block_type":"box","text":"whom they are charged with overseeing.","page_number":223,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"31f256ef-e956-4780-9039-4bddccb307a9","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":223,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"2784262b-ed35-485a-913c-5ed42132cc90","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":223,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"9fc57787-5a36-4a98-8f04-2d20dde0be78","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":223,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"41ca51d3-ca33-4093-8db4-89eae78ef548","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":223,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"ca357871-c872-4c4d-85bf-4ffd1cfc691a","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":223,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"5c513f76-9fe9-450f-8ab1-ba2bec2e2689","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":223,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"3ee3342d-b099-4014-8057-1704c23cd877","block_type":"box","text":"structures.","page_number":223,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"cd242384-cb49-4992-817c-d8f7750b9157","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":223,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"faa7338e-c4f7-42c0-9745-72bde94f0f67","block_type":"box","text":"Corporate form","page_number":223,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"b65f8766-652a-44bc-a485-aa842933c09d","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":223,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"68a5504c-57d5-44da-b6d4-5dff85e7048b","block_type":"box","text":"the company’s purpose and business model.","page_number":223,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"d35847ce-f354-4d77-a912-8111dda199ad","block_type":"box","text":"9","page_number":223,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"c2e13f1d-bc32-4f39-bea7-01c01328fbd8","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":223,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"272829e6-fb1c-4e3d-8210-2229a74fe81d","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":223,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"f6ab0b0f-c8d6-41ac-a73c-be3288dcdc95","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":223,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"21370edd-5394-4ea6-8725-1cd2bf94eebf","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":223,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"7238f47b-a3ef-4b16-b5ee-bc028a18d15a","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":223,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"bd157ff9-9cd5-475b-be98-566e73d9f43c","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":223,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"3b7e218e-df34-493a-be2f-71018c5b08e8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":223,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"602bf3d2-b09a-43d6-a5bd-75823636cf2f","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":223,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"6e9e1683-30f9-4ead-a929-371144fa03fb","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"b89e3ee8-2bfc-452e-8d09-1a08b08dc3c0","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":223,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"0c2003b6-674b-4aed-8d18-0aef1a9e37f9","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":223,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"c34dc8e6-4877-448e-88db-03731943ee61","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":223,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"757ac477-b8df-4534-99ee-fde108a04005","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":223,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"71a5af4a-42c4-42a9-9d05-d20cf9e71b70","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":223,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"3fc6eb90-ea2c-45b4-add8-7149b94d16c3","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":223,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"162a9519-0909-4bf5-9fec-1caef55236d8","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":223,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"3da9f9db-340a-4e68-aff2-178fa3efe02d","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":223,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"7fd8908b-827e-4123-88c5-2fcec8e9aafd","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":223,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"684860ff-afb2-45af-b53d-851921da1341","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":223,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"62f9934b-3dcf-4575-a5e8-de091ab90f29","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":223,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"c8477151-68ea-43e0-b7ce-1982e59a01d5","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":223,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"8ea14280-8f8f-406c-bf5d-a935644be980","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":223,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"f28eaa4a-897d-47ec-b41a-a7a66f667ff2","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":223,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"d6e7a666-23f7-4a21-9e78-e19090ee4485","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":223,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"23732ca4-aef6-41c7-8219-452ccbbafc26","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":223,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"0b2f6e81-3b27-4658-b7e1-a4c489b48f70","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":223,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"9586ed40-3032-479b-a262-9b2fa597fc5a","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":223,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"207688a3-515d-4885-9773-1ec68429a18a","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":223,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"373130e6-86b3-43bf-b6ac-d23b036dc7b4","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":223,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"73580b5b-50b5-4246-ae7f-aec0ee48a9cc","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":223,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"84dd14a5-7171-41b3-a765-5149591edae1","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":223,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"4aa2641c-6bca-45af-adc6-4f3279d5729e","block_type":"box","text":"9","page_number":223,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"4303f7df-8fa4-4cf1-ae7f-594b72ee2ad4","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":223,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"08c0f24e-40b5-4cea-b178-b73c8f6ea81e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c3728c66-0912-4f76-a006-7050699df138","block_type":"box","text":"Global Principles | 9","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"a980ed68-47e5-43d6-b917-5f2db7af7512","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f6073cc-7a99-420c-8854-06ec97815df7","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":224,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"5c3cbeab-ce5c-4a58-82c0-72384d9560ae","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":224,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"7cba5d3d-08b0-44d5-ab2f-a04117ab46cd","block_type":"box","text":"long-term financial interests.","page_number":224,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"8201af19-7a17-4edc-9391-ea573d9128ce","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":224,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"35558cb0-cc12-4b3c-bbb4-8b0e0667e7f9","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":224,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"6d896aa8-a0d6-4564-a536-f4d5f80fea72","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":224,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"cc125656-5ea2-4791-89cf-3178de14e0d0","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":224,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"4ec3495c-bfe0-4bdb-b54d-f25b62a2d946","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":224,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"f8fcfad5-c79e-4688-aec2-77c60086beda","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":224,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"d920584a-4553-4395-b29a-60a94916e807","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":224,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"76165075-7469-4183-874f-1181c2e78a39","block_type":"box","text":"term financial value creation.","page_number":224,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"351c55bc-453d-4c86-a1fa-d25faac2adcc","block_type":"box","text":"10","page_number":224,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"e6ce98e0-a4ca-4431-a073-a042dcdf33d5","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":224,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"4d069bf2-39ab-4850-b052-bbaae0e761f5","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":224,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"3e9fe54f-0c62-44f4-97dd-35f3d648e15a","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":224,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"8e1184ee-e511-4686-a0cd-1a20e9c01826","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":224,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a608b63b-0491-4f25-92e9-57a10fdbbd7e","block_type":"box","text":"industry-specific metrics.","page_number":224,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"2824f21e-ec8d-4ea6-a2de-b2b5f6e69ab3","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":224,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"87d68e83-00d2-4a1d-92d3-e1c713127c98","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":224,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"eb526922-970b-4016-ab25-f688dd0cc900","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":224,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"fdc9bfac-b177-4090-b5c0-64b88c2df327","block_type":"box","text":"11","page_number":224,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"75f288cb-18a6-4e75-86d6-99fe9dc22a00","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":224,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"6494615e-baa4-4f30-89bd-d86b42b6dd2c","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":224,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"070521af-9759-478a-97be-48218bafa317","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":224,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"3d586bdc-b4bc-4ace-955c-7011bbaf6318","block_type":"box","text":"specific.","page_number":224,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"4b6e6d7f-85ec-47b2-9531-abbf2bfdbba6","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":224,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"faa32b4c-0247-4265-bb19-da98bc73f89b","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":224,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"34d9947a-3e79-4447-a576-173292c8284d","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":224,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5ac7606e-e6ea-4e7f-8cbc-baa65b90ea65","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":224,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"0a01898a-a6d0-44ed-915f-4fd06edd87e8","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":224,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"e945c81b-13a6-46fd-b3e4-dd80a3e0e5d7","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":224,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"85478005-10bd-4f8d-aa57-97f5fded05db","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":224,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"bd4e1c29-5cea-4f88-a118-fbaab0cc1eb7","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":224,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"fa853795-cdcd-481f-a751-e41788979b35","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":224,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"f94c94b9-bb15-4977-acf1-7902b87304ab","block_type":"box","text":"10","page_number":224,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"95bd5540-e9e5-48fb-bc89-2146454e1949","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":224,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"d4527dd4-8add-491f-b478-198b1672fe93","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":224,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"bfc325e7-ad49-4613-a006-3e3d16df82de","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":224,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"23a6daf5-c185-4c30-b7c4-0f584b89c426","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":224,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"15fdcfb6-931e-446d-910e-aee05dae8a5b","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":224,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"59b642f3-f01f-4593-99fb-ddf610db87f7","block_type":"box","text":"11","page_number":224,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"ec8cda74-50b2-41ca-90af-9ef076aaaf1a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":224,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"0216e2a3-c582-48de-93f4-ef9cf555e16f","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":224,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"fbe1e7f6-33fb-4a83-b7a5-6e0d5a858b2d","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":224,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"c2e0bc58-3fa2-4bf3-8882-4b63be6651e1","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":224,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"416b5c80-805d-4726-9b58-b99c9be33899","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":224,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"ab568552-0d41-473e-bcf1-03835829407a","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":224,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"a98648f4-8276-48a8-801e-297164699fcb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cd87c440-13cc-4ecf-bd23-a3b310f2c34f","block_type":"box","text":"Global Principles | 10","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3a95020c-0dda-4cd3-8909-1dd7c3fd7c0f","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a59e1bd-d983-4dce-b5a0-2e65f9c6e388","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":225,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"2a96215d-361e-469e-89a2-bff4a8dc5db5","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":225,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"eea22a35-0f02-486c-b8eb-72c4a68e3b94","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":225,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"252512d4-4e7b-4eba-8a0c-bb933988b7d9","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":225,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"8279e359-c989-47ae-9685-dd2b58c0ebde","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":225,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"1753e909-153b-43f0-98c0-85ff61559569","block_type":"box","text":"12, 13","page_number":225,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"938527eb-8764-42c1-881b-ca742c3d55cb","block_type":"box","text":"From company disclosures and","page_number":225,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"e284816f-b3c6-4e8c-8891-02071cba444c","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":225,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"cfb2663c-a478-4c94-a691-c3405aecf611","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":225,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"837e69a1-a25d-427f-8daf-28820232be46","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":225,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"85b0398a-cfaf-401b-931e-640372ce1911","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":225,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"29aeffa9-886f-4a7f-84b6-dd307f17b1ac","block_type":"box","text":"viewed as best practice in the market.","page_number":225,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"a0176571-871a-4fb4-aba0-a26f235c2cc3","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":225,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"f0f061a7-fe6d-4cd6-be26-96fd5bad1d3e","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":225,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"22ce1580-83ff-4351-a046-e0eec90cb8b1","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":225,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"83cf9f3a-7a6a-4345-8d9c-b5ccff597976","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":225,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"172e9d11-935a-4142-874d-27cc6288f646","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":225,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"8172e401-111d-43d6-ad12-6b788e4d1e2f","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":225,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"7df3e505-b72e-47c7-ad7f-16b7b3e61895","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":225,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"049ae97e-d70b-4535-9d73-09df712f15bc","block_type":"box","text":"interests of their investors.","page_number":225,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"d2139319-a849-49d2-bdbc-c2dca29bf2f1","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":225,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"bce77282-21e7-47e1-980f-9beee3165597","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":225,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"b5ca34e3-a390-435d-ae07-0af4c5e27350","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":225,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"4c1a4034-1f34-43d1-a4ed-6c543ba51788","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":225,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"e94f8bbb-1101-4277-bec4-990d69413484","block_type":"box","text":"good-faith basis as methodology develops.","page_number":225,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"b49e449d-b1d7-445a-ba08-9b03fd61c7ce","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":225,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"54eb69ad-73d7-41d0-a9cd-51d4d0f4690f","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":225,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e7f582de-f926-4e74-8fde-bd32754f2b86","block_type":"box","text":"generate long-term financial returns.","page_number":225,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"69a6974e-fbf3-4bf1-99fe-175d8c8e1abe","block_type":"box","text":"14","page_number":225,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"cf7fab8e-dcc5-494f-9049-6dc9184589c7","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":225,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"c9469263-e2bb-4082-b746-122c2d75226b","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":225,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"955dcc9d-8c63-4c70-969c-d9c03fd4ffc6","block_type":"box","text":"15","page_number":225,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"74cfa08c-a164-49ea-9771-a71d4ff171ec","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":225,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"ee387d72-adc8-4f6b-b060-962ebacb7a26","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":225,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"f7d35fdb-770b-4ec4-a2a9-f067b91575df","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":225,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"8f6998ed-5027-475f-83cc-56272636fbb2","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":225,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"c6a177bd-f5b2-4c04-b4f8-cef02b3537dd","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":225,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"7cae0d2f-9d88-4070-a5c6-3237fddda4e5","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":225,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"76a4e57b-63f7-497d-9b28-24dc2120e6f6","block_type":"box","text":"12","page_number":225,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"2e7eab06-0d04-4cf3-a5fd-4de2a2407282","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":225,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"9ea62444-6206-4d44-9eeb-b86c17758440","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":225,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"ddb9aad3-0158-45b0-82a1-c37c7351efd1","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":225,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"88df1dc6-ea2b-4faf-b989-a6fba6b4dcfa","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":225,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"e2b69113-1380-4e68-aff1-294d638df62f","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":225,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"e0d33b6e-39bf-4a8a-9d32-225beb49e29d","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":225,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"2c7d3851-d7d2-4dd9-bc56-ded91e4a7e37","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":225,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"76d7e7a4-63d7-4829-9ec7-46da77edbc6c","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":225,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"64ac5142-6fa0-4335-a592-310a1ee496e3","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"6a11fcca-adf6-447e-9419-aca695baa56b","block_type":"box","text":"13","page_number":225,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"dd132287-191a-41ba-a1d1-3077a154ee5c","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":225,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"fdef1bd9-d03d-4feb-8568-8881cde64852","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"bec4e47c-5764-4655-8b7c-db263a662666","block_type":"box","text":"14","page_number":225,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"a58dd5a3-0ac6-4064-b4de-8e3b291e68b2","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":225,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"82c954cf-0942-4591-b358-2a0aeb8e9485","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"b7f98f83-ac1d-4671-a14b-b5c54c301fb0","block_type":"box","text":"15","page_number":225,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"46fcf3d8-3911-46c7-9a86-d6c7af48cf7f","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":225,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"41096092-f45c-4ffd-a3df-b9b5bb908719","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":225,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"05dfcea5-38a7-4848-95e2-58064f392361","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":225,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"3f5972dc-a0fd-4b2d-b78d-586328ccb1bd","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":225,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"5d0613a7-7c18-44c6-838e-08b9c18a1645","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"53efb39b-c5d1-42c5-b796-41b3cab9c6d2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0d600744-a434-4146-ab7d-0c96858365b6","block_type":"box","text":"Global Principles | 11","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"76bd1db4-6da3-454f-97ab-4429233f10d1","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74906308-9bb6-406e-98f6-dbd43e87c0d7","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":226,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"5ac05aa8-3073-4154-8029-3ad888cb4d67","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":226,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"0bf1d7d0-c270-4f91-8ab6-ead895f6026a","block_type":"box","text":"16","page_number":226,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"fa7abc10-63ff-45e6-a7d5-9c059d695c72","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":226,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"a1867b8e-1df2-40f5-a8d8-0b7cd891a280","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":226,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"695dc987-2b88-4dbe-a8c3-2b20d0a453f9","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":226,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"120a8a19-70e9-4ff8-b096-9a2d10fffbc6","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":226,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"bc34e622-ca37-4edd-81a9-a9653ff8043f","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":226,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"690f549a-72cd-4eb1-8946-c6d1e1a09d5c","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":226,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"b1b65e1c-2fc1-4d0d-b026-5c6dc1e8729a","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":226,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"104cb7b2-9993-4d05-bb12-e58f0408f412","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":226,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"e31bbaed-5627-48e1-991c-bfcd7fa7faa1","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":226,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"ec1c8a51-fa87-4d5b-a568-21ee7caa1080","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":226,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"34c30e71-f193-4615-909b-23ab0e372bd3","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":226,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"c17c328b-a77c-4d67-9ba0-e192e16d6e54","block_type":"box","text":"impacts.","page_number":226,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"ce4059d6-73fd-4bdc-8f8c-3088c84ed6f4","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":226,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"cf760ee6-7a2b-49d9-8269-9edf26ccaab4","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":226,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"f151fc0e-f896-4f96-8278-580f9991320c","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":226,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"027fcedf-2346-49cc-ab37-5b02be1130e8","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":226,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"c8482202-9a30-479e-a1dd-aa59bdb82b02","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":226,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"fde929aa-6c3a-41d5-be0d-b2ef06e38d59","block_type":"box","text":"clients at the global and regional level.","page_number":226,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"bc203942-6377-43c6-bbab-ba7613239055","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":226,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"48c3512f-12c5-4c3f-89c8-4f5bc7f74a3b","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":226,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"f7b39e8e-7307-4637-bf04-a422d7908624","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":226,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c48ebd41-2cd6-466b-889e-e0647d21d488","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":226,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"9d122f90-bbf4-4e3a-8b3d-510f3040c2fd","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":226,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"cd94d163-1691-443a-a921-7becb32033e6","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":226,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"ce18b6b1-066b-4616-8687-0437246b667e","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":226,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"6958e097-2df7-430b-a3e0-06255384fdd7","block_type":"box","text":"are independent from the investment stewardship function.","page_number":226,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"7a0549f2-8fb9-4704-bcf3-936febddd32c","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":226,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"bb8fa3e2-fc6a-4fdd-aca2-6d9504364a5f","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":226,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"05e72ae1-a82a-4f3a-9886-9e4e0ba92fc2","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":226,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"5d8bbc03-86a3-4e09-8a2c-34ef43450e41","block_type":"box","text":"VOTE EXECUTION","page_number":226,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"9e311e16-96b7-48f5-bca7-e090954fcf32","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":226,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"76027660-df19-4d0c-9d98-bcd3ecf8f0bc","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":226,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"30fcda2b-4db6-4c1b-9ea1-56ec31f51f30","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":226,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"232b5864-2f8d-4730-909b-22379682a5ef","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":226,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"35a5f6bd-afa6-457c-8a52-4ce5f8d568b5","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":226,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"708216ba-77ea-45c2-b5c2-de678862a34a","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":226,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"e798233b-1516-43a6-9d3d-a4e235fdad72","block_type":"box","text":"management policies and procedures,” below).","page_number":226,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"3bdbd3ef-5a4b-4e0d-b8b2-fc67eca9ba4d","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":226,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"2f41e706-ecbf-417a-bdef-c62f96a5a427","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":226,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"81268e4c-6cbf-4724-9f12-8e51ec13443b","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":226,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"d30fd584-2855-4bf1-a17c-b72312b41813","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":226,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"fbe95861-52cd-4766-b790-852efddb2f1e","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":226,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"c613bbf2-5c9a-47a6-befa-38f7cdae5fdc","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":226,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"bdc23309-1d7d-45b3-9c18-68a666e4d39b","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":226,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"01336344-bdaa-48b6-90fe-fa23427a6df5","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":226,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"26e34826-d597-40ad-bdb2-e1c54ff1102f","block_type":"box","text":"16","page_number":226,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"1291acfd-7b3a-4074-84f5-d8990fc0ccc8","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":226,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"df930e0e-57d8-41c7-80ed-b3cb99ee7056","block_type":"box","text":"December 2025.","page_number":226,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"2d8d81a3-c7f1-4571-b4d0-c1c5335f1dd4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ba05ce4d-4072-4295-86b4-e48bfaa31a95","block_type":"box","text":"Global Principles | 12","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"5b4ac2d1-6f19-40de-96fe-8a3d2308983b","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f94ca4b2-e79e-4859-b303-d3fa8736fa36","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":227,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"b6e98fff-dbe3-4124-a547-183f70ea3d15","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":227,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"851b1a7a-4931-4da3-a2e7-840242bf68d0","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":227,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"1263407b-f832-4142-9efc-02999b74f1bb","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":227,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"276cfef9-78de-4085-9a11-d70d7549d92b","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":227,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"c51854f0-84fc-45af-9f5b-f41d2485f197","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":227,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"d5b73801-6a2f-4115-8652-a8f7122ae58f","block_type":"box","text":"enterprise-level vendor management activities.","page_number":227,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"1860e527-4466-42ab-9dac-2ad54168de8d","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":227,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"6ad3cea6-1e32-4256-8e7e-6641c07200bf","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":227,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"182b8e37-5fd6-4ad7-a40c-484f6ad83be0","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":227,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"344c2e72-c1f2-4cee-b8d5-b5c20a30d4ba","block_type":"box","text":"BlackRock employees.","page_number":227,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"1d39c154-2bde-465f-91c0-e0f7dfee4a92","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":227,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"c414012f-ffcf-4e2f-9aa0-5b836e627821","block_type":"box","text":"SECURITIES LENDING","page_number":227,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"b78330e0-c938-42ab-b935-ddc0bee52c95","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":227,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"777f3e01-fd5f-4312-acee-801dd7401818","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":227,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"79a2ccb8-2f2b-4add-91db-99cb5405cec9","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":227,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"4a2e66db-19a5-4604-86a2-091524aca2be","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":227,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"a8eeb123-6b65-41c6-9b1c-72acb30ff3c2","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":227,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"53b35cb4-81ad-4668-bd7a-73073152fa05","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":227,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"60acbee9-18fe-4b13-9bb0-2ab2672b74a4","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":227,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"99da218f-27f9-4720-8b8d-961925efe8d8","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":227,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"69377631-4164-408f-aa7c-5764fd8ce0c2","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":227,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"40ac8948-8720-44be-a40d-784e0f5005c8","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":227,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"b93da62c-cb1d-4b87-9059-4dff48621886","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":227,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"031dd0e1-5c0d-4598-8c1a-59c4a60784da","block_type":"box","text":"of recall consideration).","page_number":227,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"311f27e8-0b35-476d-9250-d51199348a42","block_type":"box","text":"17","page_number":227,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"ae3ed486-094f-4793-94bb-944f92ada9ec","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":227,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"2b2ec294-3e62-4126-90d4-71658d0a145c","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":227,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"3141cf79-74c3-4ff8-afbf-de951a3ff97b","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":227,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"406960eb-b2b7-4766-b845-86b15d3890a7","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":227,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"01db4a4e-f6fe-4651-ba13-43f003289a4c","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":227,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"df224453-675b-4812-96af-d24917daa357","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":227,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"f5ff73ab-9050-41bd-9c7a-74a9fdb2ba03","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":227,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"6def88be-8965-4d30-b038-f95fecbe179c","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":227,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"a0434767-9fca-49af-a195-c692b70eb5d4","block_type":"box","text":"and may modify it as necessary.","page_number":227,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"ddf56d34-420c-436b-8112-deded18f47df","block_type":"box","text":"VOTING CHOICE","page_number":227,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"e2fc2bf3-5c52-48c2-9aab-e87fed498fa4","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":227,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"89b8a807-5914-4680-83eb-115ab3313a43","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":227,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"0e2d96d4-8d19-490c-9a86-6de154dd15db","block_type":"box","text":"18","page_number":227,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"d187a2a5-373c-42a6-b45e-3761342b4285","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":227,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"28f3c90e-8271-4e1c-85f4-2c57b0313c9f","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":227,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"3a3d388b-a95f-444e-b797-47b12b296a38","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"5f7f0111-c081-4ef1-9d73-84e7b3742ba3","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":227,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"43d49ad9-c4f4-4fe2-85ac-208419d29fbc","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":227,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"7dbfe946-9fef-4091-92b0-a3b0907dbbaf","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":227,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"6abf1f1e-e8f5-47e2-80be-ae208d6de530","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":227,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"01daac23-66cc-4af6-9aca-4c3aa8141810","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":227,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"16dfc736-4b76-4aef-9f3e-32f1a0d42998","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":227,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"4dcd9a28-0af6-4cc7-8be4-1c8fd788d595","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":227,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"335c803f-f44f-44ad-93a8-fed707ac92da","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":227,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"d46be055-b3b7-4ddf-b4c8-7f3bcaf22ff0","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"bbacb7ae-4df3-4824-a547-1c6c188c1775","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":227,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"f14c7a43-118e-4871-84ec-545b8a674e57","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":227,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"58238fdd-d1f2-45d4-925f-7f6bcccd684f","block_type":"box","text":"including the decision to lend securities.","page_number":227,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"e3136bbe-7dac-47b6-9c9f-e0a7900ddad5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"aa8fed55-0802-436f-a877-6bc18c21af70","block_type":"box","text":"Global Principles | 13","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"54b9e78c-6be0-40ba-9356-23897c55b080","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7971c7d1-f9c3-44d9-9844-39d7e8a42388","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":228,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"2e94b386-fa6c-4860-8922-60ce4a04e931","block_type":"box","text":"(SAE) strategies. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":234,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"caba84a6-8c3a-43eb-8f6b-b803504f3f61","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":234,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"19aebf79-d8ee-4416-8f72-42349b63f5e7","block_type":"box","text":"14","page_number":234,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"07df3d09-1b20-466a-8cf7-4d124553f9f6","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":234,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"abcd8470-7e01-4032-9bad-7d0ae78c3a32","block_type":"box","text":"(IFRS) Foundation. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":234,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"a1591971-4196-4c3b-8405-7a734268b577","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":234,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"140a365f-7488-4b4d-9ffc-64bd3a7ff5a6","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":234,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"5a92d050-f278-4479-a2ba-c046546e5482","block_type":"box","text":"15","page_number":234,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"e3790adc-805b-4155-aea2-bd64eb5258b7","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":234,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"597f52e9-aab6-4230-9eb2-01bbd0008287","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":234,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"ceac9c0a-ce28-4c71-bb0e-bf91cf6da4b8","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":234,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"ad953217-0f22-41d8-894a-8e83687b406b","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":234,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"1b3daae6-3b58-45b3-a5a9-00ad11b54fff","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":234,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"22c1dcef-ca69-4494-a50e-68ecb8a8e984","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fea5a3ad-86f8-4bfd-bede-86a4dcd4803f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"546d13bb-6055-4520-bac9-7d9beb01f633","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1aa5a26-17c7-4448-9a1e-6fd00465ac1c","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":235,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"f36ebc4f-f3fb-4655-bc57-fe0f10a63715","block_type":"box","text":"16, 17","page_number":235,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"99895f6f-3fa6-442f-aa08-cd8563f83140","block_type":"box","text":"In addition, the dedicated team looks to","page_number":235,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"e358151f-c68e-4814-b696-718358cbbd02","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":235,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"b3286554-d3ff-49f0-947b-9ff048bdd0a8","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":235,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"ad7578eb-dea4-44a5-a496-2d28ee83f530","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":235,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"8d255f77-a233-43ab-9923-8dc7a53a59bc","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":235,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"4f0080c0-8db0-4bfd-8626-e6fbd9909a66","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":235,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"786502fe-186e-4266-bfb0-5d785f98944c","block_type":"box","text":"18","page_number":235,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"bc1b7e44-e694-4ed6-986a-13e307b1a008","block_type":"box","text":"However,","page_number":235,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"ea9fdf78-1fc0-4226-9745-d065994ca8d6","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":235,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"9c6ccc28-20cf-4826-b1d8-e32d6c93edb8","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":235,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"f25e183a-35e0-4a5e-ac83-bb9b9870c6e8","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":235,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"1027daca-717e-4673-9f72-bb42008ca7b3","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":235,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"ceb648a7-b975-411a-92a0-215c80fcad28","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":235,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"75949796-77c0-4400-bea0-a8ca8571ba84","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":235,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"080635f7-704f-4c13-b589-2f4d3bded343","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":235,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"dea50b7f-f064-4224-a295-732914a1b757","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":235,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"791daf3a-5a6b-4e66-8aab-c1717bb967a0","block_type":"box","text":"transition risks.","page_number":235,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"4fa83124-0b7d-4ac8-96a5-9438f609e408","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":235,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"8ce70d5c-d8bf-421b-8ea6-3b26735e4ce7","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":235,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"2de708d4-f245-4b46-942d-2eeec9be7d63","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":235,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"1b5867af-7e92-4502-a206-45e1ae4c2566","block_type":"box","text":"Transition plans","page_number":235,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"3fdc2d15-57eb-4890-91d1-d0f550901aea","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":235,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"97cb2459-e1cb-448d-bf66-265345a86f2e","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":235,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"78ce2ddd-11ec-4c62-bf2a-6797512c6933","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":235,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"fcd6fa4c-a96c-4b2f-bada-40daa3df8328","block_type":"box","text":"(see Appendix 1).","page_number":235,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"1c34422f-0a9f-4ace-b275-0a8923cadc16","block_type":"box","text":"19","page_number":235,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"4b5c33ed-ed73-4faf-8f83-a8504978f805","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":235,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"d969afcb-16c5-42d2-89cc-437e458fe438","block_type":"box","text":"transition plans.","page_number":235,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"772c6d64-a356-4775-afcb-92685229e687","block_type":"box","text":"20","page_number":235,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"f5d4d879-e956-45df-a766-3b75f68ecef2","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":235,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"b1290097-61df-4b07-a8f3-837caee34fe1","block_type":"box","text":"repor ting approaches.","page_number":235,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"013d4c67-44f4-49f2-9ffd-a012b1e468ed","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":235,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"399131c2-76c4-4dc6-9466-5b7a13381106","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":235,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"d24766e7-2028-4540-bffa-178c73465655","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":235,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"76f8fbb4-13ea-48d9-8d79-4c99bffec311","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":235,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"eabe9222-abb0-4a21-ae73-c89ef2382c09","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":235,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"2c7084bb-e58c-4b09-bca7-daaad0330397","block_type":"box","text":"informed voting decisions.","page_number":235,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"4987dcbf-0526-4b08-b516-d7138afb5676","block_type":"box","text":"16","page_number":235,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"9464e0e0-dc6a-41fa-a767-03e030e06045","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":235,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"72d32d97-b58b-442e-8cd7-45868da741f2","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":235,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"6cfa62bd-3c72-44a9-81f9-b45fc7f4737e","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"b33fe2f4-ece1-4ca7-885b-1c6b582a2c78","block_type":"box","text":"17","page_number":235,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"252b857b-d761-416d-ba1a-876bbba925a0","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":235,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"6442797e-cc58-43a4-b51a-986c6e54b190","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":235,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"a4af9df9-d6ce-4f37-8287-5f0102c13399","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":235,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"9af5781d-70b2-4e32-8afa-cef9ac3da227","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":235,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"d250177a-5a6b-406f-98ef-93ac4cd2513c","block_type":"box","text":"18","page_number":235,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"442f2e7e-de74-4d39-aeae-4ffa1057a63b","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":235,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"507c5947-ae6a-4655-82da-7f8cf4dd2c0b","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":235,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"e25ce82d-09f0-4106-888f-8a298993a7ae","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":235,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"9adafcb6-cd30-4e20-87dc-429319d8ae5b","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":235,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"f57906bd-3bbe-480e-aade-4ed28e843bc0","block_type":"box","text":"material to their business models.","page_number":235,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"32c1a778-8696-4228-8b8f-f7da15dadc69","block_type":"box","text":"19","page_number":235,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"e0e6a993-05d6-4640-be1b-f47151f0f94e","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":235,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"9a6a0cae-7ed5-4813-b9ee-411bf4129e16","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"b4f59ccf-858a-4857-b56a-f24796e11f66","block_type":"box","text":"20","page_number":235,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"f5f259ef-0f63-4f9a-a72b-26eb09d6161c","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":235,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"6626703c-1dc0-44d5-a420-473878270b55","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":235,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"7d4d8c79-2f69-4e78-8159-ca2bd8201d2a","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":235,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"e7b57cf6-7377-4433-89cd-d973e002c44b","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":235,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"93023561-0fe4-4b5c-8f83-ceb3eae75c6a","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":235,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"ec5df2a5-588f-4077-9d7d-424dfaa97d35","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":236,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"425e86aa-e020-4582-bc2e-a6901b2096e8","block_type":"box","text":"understand whether:","page_number":236,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"79dc5763-85ad-403c-ae93-b12ae33a8292","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"bb61db60-f33a-464b-ba91-8dc46689b814","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":236,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"140bcaa5-3213-4023-a328-5d97fd4e35e5","block_type":"box","text":"oppor tunities in the company’s business model. 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Under the Guidelines, the team may suppor t","page_number":237,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"c86e0cd5-5b17-4f3a-a1cb-a8dea4405283","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":237,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"3753249d-a73d-4281-bbdf-486f173b8e27","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"4bf323f0-4f9f-4532-b5b1-8b5088593887","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":237,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"8cf4778b-3f0a-4594-b821-1f59c0d46f4f","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":237,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"a17db24e-6f77-42e1-b576-8466ebff2d47","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"1637b35b-09d5-4c3f-b533-8b6d62a993b9","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":237,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"02e6c8ae-459c-4227-8881-2af38d14d353","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":237,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"e149cacc-e315-43c4-abee-fe2a65b10cea","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"d1161bd1-ea7a-458f-890a-aaaa2d15bd19","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":237,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"f06e34ac-b944-4821-8bdb-828e7cc6408d","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"d20df586-1bc3-4db8-a4d8-a656331743ca","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":237,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"b627d3f0-e2be-4632-910a-5075271143a0","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":237,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"5b17641f-1749-4e35-b4ee-f5006729b81d","block_type":"box","text":"25","page_number":237,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"87c93ddd-4549-4818-aa57-9f109a6c4d19","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":237,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"a5a319b9-b3fc-4b32-bbd4-6699bb30a17a","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":237,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"31162677-70fe-4f1c-8bf9-733be66d6ada","block_type":"box","text":"RELATED MATTERS","page_number":237,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"a55c20e4-e22d-4536-8b32-36d3c94902ef","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":237,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"028542e6-59b1-4386-966d-56bb307a0cbf","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":237,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"262862e8-a4e9-4330-952f-863aa9674d4c","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":237,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"8c8b2726-8198-4dea-bde5-1943eb34818f","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":237,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"4e4bb7bb-eac8-4c08-bcec-176b4762b31f","block_type":"box","text":"Executive compensation","page_number":237,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"1604db04-1c39-4259-99cf-68771348b84c","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":237,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"f07c1414-2ec4-4bd4-9170-231920b618cb","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":237,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"89223594-d201-4fb0-9ee2-840e2f8b0cc8","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":237,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"06f3e1d4-b819-4f76-8fa8-93bcf8ee9b42","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":237,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"df781f0a-def6-46f4-85f9-30b9caa38538","block_type":"box","text":"24","page_number":237,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"13893113-eaa7-449e-9f1f-ebb9d171410a","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":237,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"c786f68a-868f-4e5f-b409-e73d82b511de","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":237,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"e278c41e-0b94-4fd3-afc8-b5c5035e05ba","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":237,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"7d05519b-396f-4985-afea-40a5d2f7ed4b","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":237,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"d37e4254-6c03-40b9-8921-57140ecb7f43","block_type":"box","text":"25","page_number":237,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"a841d6d3-a4c1-4473-8b5b-6d6e18de450d","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":237,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"c5f48642-e3b7-4554-a01b-a956dbd2bab4","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":237,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"74e586a7-9fac-4354-a445-e1e6c041c381","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"26fb33da-e28e-476e-b5c4-433f5716d5b6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":237,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"f6c974ac-e6c4-48f3-bab3-feffe6d20d5f","block_type":"box","text":"BNM1026U-6032181-19202176","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b28fc302-a023-43e4-a8c9-b9cbfbeb6a77","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":238,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"d745fad2-e48d-4ae0-af9e-c13e1ca968de","block_type":"box","text":"strategy and risk management.","page_number":238,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"e58046b8-bf2b-45c3-b38a-8166e58293ea","block_type":"box","text":"Auditors and audit-related issues","page_number":238,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"82c8ab49-2a60-4ec4-833f-177fa4d3235a","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":238,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"abe4a267-3c02-43cf-a28e-6233d6e99e6e","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":238,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"1365866f-446a-4ef3-a078-0c6f6e567c09","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":238,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"579851df-48fd-45ea-b2c7-0df9405824b9","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":238,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"f216c885-3922-4003-9baf-a3e680945db0","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":238,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"fbe9110a-d592-45c1-8a1f-2a3f2f06cc99","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":238,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"3bb3436b-fc5b-4d55-b820-29265360154c","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":238,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"f744af58-4b57-4675-9cf5-a27b1b90b5f9","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":238,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"818b3d95-4560-4a99-ad61-3da45dd3c528","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":238,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"24d34626-d76e-49ee-b225-c568c5a3b1b8","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":238,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"6fe5a753-0130-43fb-bcb2-f751ccb7313e","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":238,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"65a2bcb1-c560-4046-871d-42c760fa0f81","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":238,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"c34f8525-2c12-480c-b127-2dfe028268a1","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":238,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"a2e48bd4-63b2-4d59-875e-71b43ce71752","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":238,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"61bb9a3d-d141-47da-888e-2d7ead945329","block_type":"box","text":"stakeholders.","page_number":238,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"2273621e-f3e8-4c74-b8cd-be9dabe0ce4f","block_type":"box","text":"26","page_number":238,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"a431aec7-8268-4360-a44f-fc7f9d9a2b1e","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":238,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"a62158c4-cc74-450d-b806-434a0325f301","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":238,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"996027a1-4271-448c-b0d4-6170bf713590","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":239,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"d2b4dfd3-e8fa-498f-8726-3e12b280074f","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":239,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"95ba9b01-38f1-47d7-b3aa-33cebdc71a3f","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":239,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"800bf5e9-f83d-4f8e-980b-4cfb6ceb2a2b","block_type":"box","text":"Decarbonization:","page_number":239,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"33115cc0-843e-49c8-9ee5-1b950b44f6e5","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":239,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"9e3ed651-a2c1-4471-816d-9905d8f0c8dc","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":239,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"f55a783c-074c-4893-b7b6-2817d6505ab6","block_type":"box","text":"individual consumers. 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